McDonald’s Stock Shoots Up on Higher Q3 Sales

McDonald’s shares a hit a new 52-week high $110.88 Thursday morning.

The Oak Brook, Illinois-based company posted quarterly net income of $1.31 billion, or $1.40 per share, compared to $1.07 billion, or $1.09 per share, in the year-ago period.

“I am encouraged by our operating performance for the quarter, with positive comparable sales across all segments, including the U.S., as well as sales recovery in China following the prior year supplier issue”. Nomura reiterated a “neutral” rating and issued a $112.00 price target on shares of McDonald’s Co.in a research note on Friday. On average, equities research analysts predict that McDonald’s Co. will post $4.82 EPS for the current fiscal year. Cleveland Research initiated coverage on shares of McDonald’s Co.in a research report on Wednesday, July 8th.

Out of 10 analysts covering McDonald’s Corporation (NYSE:MCD), 9 rate it “Buy”, 0 “Sell”, while 1 “Hold”. The market capitalization of the company is $104.42 billion with the total traded volume of the company is 11.68 million.

Its revenue declined to $6.62 billion from $6.99 billion. The company now has a consensus rating of Hold and an average target price of $109.89. McDonald’s Corporation (NYSE:MCD) has risen 14.17% since March 23, 2015 and is uptrending.

The $112 revised target price by the analyst represents a multiple of 12-13x for the forecasted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the next 12-months. The ratio dived, as 114 funds sold all McDonald’s Corporation shares owned while 707 reduced positions. US SSS gained 1%, beating estimates of 0.2%, after the company introduced the popular chicken sandwich, and breakfast items. The mean 12-month forward target price now stands at $113.65 after the recent revisions. The shares closed down 1.3 points or 1.25% at $102.54 with 8,308,921 shares getting traded.

McDonalds Corporation franchises and operates McDonalds restaurants in the global restaurant industry. The company has a market cap of $96,573 million and the number of outstanding shares have been calculated to be 941,810,240 shares. The Company manages its business as different geographical sections: the United States (NYSE:MCD); Europe, and Asia/Pacific, Middle East and Africa (APMEA). The Company’s operations in Canada and Latin America, as well as its corporate activities are reported under Other Countries & Corporate. McDonald’s franchised restaurants are owned and operated under one of the following constructions: developmental permit, traditional franchise or affiliate.