34,744 McDonald's Corporation $MCD Shares Sold by Turtle Creek Wealth Advisors LLC

Key Points

• Turtle Creek Wealth Advisors cut its McDonald’s stake by 55% in the third quarter, selling 34,744 shares and retaining 28,395 shares valued at approximately $6.6 million. Institutional investors overall own 70.29% of the company.
• McDonald’s faces weak U.S. sales and execution concerns, but its planned $8.5 billion franchisee-support and modernization program, digital offers, value meals and promotional campaigns could support a turnaround.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and average price target of $295.94, while shares recently traded near $242.81. The company also raised its quarterly dividend to $1.93, implying a 3.2% annual yield.

Turtle Creek Wealth Advisors LLC lessened its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 55.0% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 28,395 shares of the fast-food giant's stock after selling 34,744 shares during the period. Turtle Creek Wealth Advisors LLC's holdings in McDonald's were worth $6,558,000 at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of the business. Nvwm LLC raised its stake in shares of McDonald's by 5.1% in the third quarter. Nvwm LLC now owns 7,081 shares of the fast-food giant's stock worth $1,635,000 after purchasing an additional 346 shares during the last quarter. Viking Fund Management LLC increased its holdings in McDonald's by 60.0% in the 3rd quarter. Viking Fund Management LLC now owns 40,000 shares of the fast-food giant's stock worth $9,238,000 after buying an additional 15,000 shares during the period. William Allan Corp increased its holdings in McDonald's by 20.6% in the 3rd quarter. William Allan Corp now owns 8,391 shares of the fast-food giant's stock worth $1,938,000 after buying an additional 1,433 shares during the period. Mather Group LLC. raised its position in McDonald's by 21.7% during the 3rd quarter. Mather Group LLC. now owns 84,887 shares of the fast-food giant's stock worth $19,604,000 after buying an additional 15,152 shares during the last quarter. Finally, Hudock Inc. raised its position in McDonald's by 127.5% during the 3rd quarter. Hudock Inc. now owns 5,634 shares of the fast-food giant's stock worth $1,301,000 after buying an additional 3,158 shares during the last quarter. Institutional investors own 70.29% of the company's stock.

McDonald's News Summary

Here are the key news stories impacting McDonald's this week:

• Positive Sentiment: McDonald’s shares advanced even as the broader market weakened, indicating some relative strength and investor interest at depressed valuation levels. McDonald's Increases Despite Market Slip
• Positive Sentiment: The company’s roughly $8.5 billion franchisee-support and modernization plan, along with personalized digital offers, value meals and streamlined marketing, could improve traffic and sales if execution improves. The planned “Archy” drive-through AI system may also support efficiency, although its benefits remain unproven. McDonald's $8.5B Fix
• Positive Sentiment: Renewed promotions, including the Monopoly Go collaboration and potential Disney-villain Boo Buckets, could provide short-term customer engagement and seasonal sales support, though these campaigns are unlikely to change the long-term outlook by themselves. Monopoly Go Returns to McDonald's
• Neutral Sentiment: At about 18 times earnings, MCD’s valuation may already reflect some of the turnaround risk, but investors still need evidence that the spending plan can restore sustainable growth. McDonald's Trades at 18 Times Earnings
• Negative Sentiment: Shares remain down sharply over six months as weak U.S. sales, ineffective value-menu execution and reduced earnings estimates weigh on investor confidence. Analysts are questioning whether promotions and operational fixes can reverse the slowdown. McDonald's Stock Down 23 Percent in Six Months
• Negative Sentiment: A proposed class-action lawsuit alleging problematic AI-driven menu pricing creates legal, reputational and regulatory risk, while reports of a poorly reviewed U.S. location highlight potential service and franchise-operator issues. McDonald's AI Menu Pricing Lawsuit

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Gordon Haskett reduced their price objective on McDonald's from $315.00 to $285.00 and set a "buy" rating for the company in a research note on Thursday, September 24th. Oppenheimer lowered their price target on shares of McDonald's from $325.00 to $295.00 and set an "outperform" rating on the stock in a report on Thursday, September 24th. HSBC dropped their price target on shares of McDonald's from $357.00 to $356.00 and set a "buy" rating on the stock in a research report on Wednesday, August 5th. JPMorgan Chase & Co. dropped their target price on McDonald's from $280.00 to $260.00 and set an "overweight" rating on the stock in a research report on Thursday, September 24th. Finally, DZ Bank reaffirmed a "buy" rating on shares of McDonald's in a report on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, McDonald's currently has an average rating of "Moderate Buy" and an average target price of $295.94.

McDonald's Stock Performance

Shares of MCD traded up $4.50 during midday trading on Thursday, hitting $242.81. 3,876,677 shares of the stock were exchanged, compared to its average volume of 4,237,482. McDonald's Corporation has a 52-week low of $229.20 and a 52-week high of $341.75. The stock has a fifty day simple moving average of $253.35 and a 200 day simple moving average of $272.74. The firm has a market cap of $171.82 billion, a P/E ratio of 19.73, a P/E/G ratio of 2.64 and a beta of 0.44.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. The firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company's revenue was up 3.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.19 earnings per share. As a group, equities research analysts forecast that McDonald's Corporation will post 12.84 EPS for the current fiscal year.

McDonald's Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a $1.93 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.2%. This is a boost from McDonald's's previous quarterly dividend of $1.86. McDonald's's payout ratio is 62.71%.

McDonald's Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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