Fintel reports that on July 28, 2023, Wells Fargo maintained coverage of McDonald`s (NYSE:MCD) with a Equal-Weight recommendation.

Analyst Price Forecast Suggests 10.47% Upside

As of July 6, 2023, the average one-year price target for McDonald`s is 324.82. The forecasts range from a low of 303.00 to a high of $363.30. The average price target represents an increase of 10.47% from its latest reported closing price of 294.03.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for McDonald`s is 23,793MM, a decrease of 1.66%. The projected annual non-GAAP EPS is 10.57.

• For more in-depth coverage of McDonald`s, view the free, crowd-sourced company research report on Finpedia.

McDonald`s Declares $1.52 Dividend

On May 25, 2023 the company declared a regular quarterly dividend of $1.52 per share ($6.08 annualized). Shareholders of record as of June 5, 2023 received the payment on June 20, 2023. Previously, the company paid $1.52 per share.

At the current share price of $294.03 / share, the stock's dividend yield is 2.07%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.36%, the lowest has been 2.04%, and the highest has been 3.65%. The standard deviation of yields is 0.22 (n=236).

The current dividend yield is 1.29 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.56. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.22%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 4094 funds or institutions reporting positions in McDonald`s. This is an increase of 48 owner(s) or 1.19% in the last quarter. Average portfolio weight of all funds dedicated to MCD is 0.60%, an increase of 12.21%. Total shares owned by institutions decreased in the last three months by 2.33% to 541,690K shares. The put/call ratio of MCD is 0.77, indicating a bullish outlook.

What are Other Shareholders Doing?

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 22,672K shares representing 3.11% ownership of the company. In it's prior filing, the firm reported owning 22,260K shares, representing an increase of 1.82%. The firm decreased its portfolio allocation in MCD by 0.22% over the last quarter.

VFINX - Vanguard 500 Index Fund Investor Shares holds 17,091K shares representing 2.34% ownership of the company. In it's prior filing, the firm reported owning 16,932K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in MCD by 0.68% over the last quarter.

Wellington Management Group Llp holds 15,451K shares representing 2.12% ownership of the company. In it's prior filing, the firm reported owning 16,087K shares, representing a decrease of 4.12%. The firm decreased its portfolio allocation in MCD by 85.78% over the last quarter.

Jpmorgan Chase holds 14,597K shares representing 2.00% ownership of the company. In it's prior filing, the firm reported owning 14,907K shares, representing a decrease of 2.13%. The firm decreased its portfolio allocation in MCD by 4.00% over the last quarter.

Bank Of America holds 13,935K shares representing 1.91% ownership of the company. In it's prior filing, the firm reported owning 13,841K shares, representing an increase of 0.68%. The firm decreased its portfolio allocation in MCD by 75.43% over the last quarter.

McDonald`s Background Information
(This description is provided by the company.)

McDonald's is the world's leading global foodservice retailer with over 39,000 locations in over 100 countries. Approximately 93% of McDonald's restaurants worldwide are owned and operated by independent local business owners.

Additional reading:

• McDONALD'S REPORTS SECOND QUARTER 2023 RESULTS
• McDonald's Corporation Supplemental Information (Unaudited) Quarter and Six Months Ended June 30, 2023 Impact of Foreign Currency Translation 1 Net Income and Diluted Earnings per Share 2 Revenues 3 Comparable Sales 4 Systemwide Sales and Franchised
• Form of 2023 Executive Performance-Based Restricted Stock Unit Award Agreement in connection with the Amended and Restated 2012 Omnibus Stock Ownership Plan, filed herewith.*
• Form of 2023 Executive Stock Option Award Agreement in connection with the Amended and Restated 2012 Omnibus Stock Ownership Plan, filed herewith.*
• McDONALD'S REPORTS FIRST QUARTER 2023 RESULTS