354,220 McDonald's Corporation $MCD Shares Sold by Assenagon Asset Management S.A.

Key Points

• Assenagon Asset Management cut its McDonald’s stake by 63.7%, selling 354,220 shares during the third quarter and retaining 202,047 shares valued at approximately $46.7 million. Hedge funds and institutional investors collectively own 70.29% of the company.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $295.94, although several firms recently lowered their targets. McDonald’s shares opened at $242.99, near the lower end of their 12-month range.
• McDonald’s raised its quarterly dividend to $1.93 per share, representing an annualized payout of $7.72 and a 3.2% yield. The company exceeded quarterly EPS expectations, but weak U.S. sales and concerns about value-menu execution remain challenges.

Assenagon Asset Management S.A. cut its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 63.7% during the third quarter, according to its most recent Form 13F filing with the SEC. The fund owned 202,047 shares of the fast-food giant's stock after selling 354,220 shares during the period. Assenagon Asset Management S.A.'s holdings in McDonald's were worth $46,661,000 at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. Purpose Unlimited Inc. acquired a new stake in McDonald's during the fourth quarter worth $31,000. GKV Capital Management Co. Inc. acquired a new position in shares of McDonald's in the 1st quarter valued at $33,000. Merkkuri Wealth Advisors LLC acquired a new position in shares of McDonald's in the 1st quarter valued at $43,000. Burkett Financial Services LLC lifted its stake in shares of McDonald's by 2,312.5% in the 3rd quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant's stock valued at $45,000 after purchasing an additional 185 shares during the last quarter. Finally, POM Investment Strategies LLC grew its holdings in shares of McDonald's by 46.2% during the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant's stock worth $47,000 after purchasing an additional 55 shares during the period. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Key McDonald's News

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

• Positive Sentiment: McDonald’s is bringing back a popular limited-time meal, while Halloween Boo Buckets are returning with a Disney-themed design. The promotions could support traffic, customer engagement and comparable-store sales. McDonald’s Is Bringing Back a Fan-Favorite Meal
• Positive Sentiment: McDonald’s dividend remains a key attraction: the company has joined the “Dividend King” group after decades of consecutive increases. Income-oriented investors may view the yield above 3% and recurring franchise cash flow favorably. McDonald’s Dividend King Status
• Positive Sentiment: Unusually heavy call-option activity and a broader rotation from technology into beaten-down consumer stocks may be providing additional short-term support for MCD. Consumer Stocks Get a Lift as Investors Rotate Out of Tech
• Neutral Sentiment: Analysts and market commentators generally see the stock as near fair value following its dividend increase. McDonald’s has fallen substantially this year, but investors still need evidence that cash-flow and earnings growth can justify the valuation. McDonald’s May Trade Near Fair Value
• Neutral Sentiment: The company’s planned multibillion-dollar modernization, including drive-thru technology and the “Archy” AI initiative, could improve efficiency over time, although execution and return-on-investment risks remain. McDonald’s Overhaul and AI Drive-Thru
• Negative Sentiment: McDonald’s faces a challenging third-quarter outlook, with weak U.S. sales and questions about value-menu execution. Renewed promotions and operational fixes will need to translate into sustained traffic and earnings growth. Challenging Q3 Outlook
• Negative Sentiment: Some investors argue that an attractive dividend alone is insufficient because the stock’s valuation leaves limited room for disappointment if sales and earnings remain pressured. McDonald’s Dividend Yield and Valuation

Analyst Ratings Changes

A number of research firms have commented on MCD. Argus decreased their target price on shares of McDonald's from $320.00 to $310.00 and set a "buy" rating on the stock in a research report on Wednesday, August 26th. TD Cowen lowered their price objective on shares of McDonald's from $282.00 to $270.00 and set a "hold" rating for the company in a research report on Thursday, September 24th. HC Wainwright set a $250.00 target price on shares of McDonald's in a report on Friday, September 25th. Melius Research decreased their target price on McDonald's from $250.00 to $230.00 and set a "sell" rating on the stock in a research note on Monday, September 28th. Finally, Oppenheimer dropped their target price on McDonald's from $325.00 to $295.00 and set an "outperform" rating for the company in a research report on Thursday, September 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $295.94.

McDonald's Price Performance

MCD opened at $242.99 on Friday. The business has a fifty day moving average price of $252.05 and a 200 day moving average price of $272.09. McDonald's Corporation has a 12 month low of $229.20 and a 12 month high of $341.75. The stock has a market capitalization of $171.95 billion, a price-to-earnings ratio of 19.74, a PEG ratio of 2.72 and a beta of 0.44.

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

McDonald's Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a dividend of $1.93 per share. The ex-dividend date is Tuesday, December 1st. This is a positive change from McDonald's's previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.2%. McDonald's's payout ratio is currently 60.44%.

McDonald's Company 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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