ABN Amro Investment Solutions Boosts Position in McDonald's Corporation $MCD

Key Points

• ABN Amro Investment Solutions sharply increased its McDonald’s stake by 218.4% in Q1, ending with 111,392 shares valued at about $34.6 million.
• McDonald’s reported better-than-expected quarterly results, with EPS of $2.83 topping estimates and revenue of $6.52 billion slightly ahead of forecasts, while revenue rose 9.4% year over year.
• The company also paid a $1.86 quarterly dividend in June, equal to an annualized yield of about 2.8%; meanwhile, analysts remain broadly constructive with a Moderate Buy rating and an average price target of $336.32.

ABN Amro Investment Solutions boosted its position in McDonald's Corporation (NYSE:MCD - Free Report) by 218.4% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 111,392 shares of the fast-food giant's stock after purchasing an additional 76,402 shares during the period. ABN Amro Investment Solutions' holdings in McDonald's were worth $34,620,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the company. Your Advocates Ltd. LLP purchased a new position in McDonald's during the fourth quarter valued at $27,000. Park Place Capital Corp increased its position in McDonald's by 95.7% in the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock worth $28,000 after buying an additional 45 shares in the last quarter. IFC & Insurance Marketing Inc. purchased a new stake in McDonald's in the fourth quarter worth about $29,000. Abound Financial LLC bought a new position in shares of McDonald's in the fourth quarter worth about $30,000. Finally, DecisionPoint Financial LLC raised its stake in shares of McDonald's by 1,616.7% in the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock worth $31,000 after buying an additional 97 shares during the period. 70.29% of the stock is currently owned by institutional investors.

Insider Activity at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the transaction, the insider directly owned 7,734 shares of the company's stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 8,681 shares of company stock worth $2,456,440 over the last ninety days. Insiders own 0.26% of the company's stock.

McDonald's Stock Performance

MCD opened at $263.76 on Wednesday. The stock has a market capitalization of $187.40 billion, a price-to-earnings ratio of 21.74, a PEG ratio of 2.87 and a beta of 0.41. The company has a fifty day moving average of $276.71 and a 200 day moving average of $299.70. McDonald's Corporation has a fifty-two week low of $263.65 and a fifty-two week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating analysts' consensus estimates of $2.74 by $0.09. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The firm had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same quarter last year, the business posted $2.67 earnings per share. The business's quarterly revenue was up 9.4% compared to the same quarter last year. On average, equities research analysts forecast that McDonald's Corporation will post 12.86 earnings per share for the current year.

McDonald's Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were paid a $1.86 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. McDonald's's payout ratio is presently 61.34%.

Key Stories Impacting McDonald's

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

• Positive Sentiment: Several bullish commentaries argue McDonald’s recent weakness may be an opportunity, citing improving top- and bottom-line growth, international resilience, and compressed earnings multiples that could make the stock more attractive. McDonald's Sell-Off Is Your Opportunity
• Positive Sentiment: Another analyst upgrade says McDonald’s consistency deserves a higher multiple, pointing to faster recent revenue and earnings growth as evidence of a potential turnaround. McDonald's: Consistency Deserves A Better Multiple (Rating Upgrade)
• Positive Sentiment: Menu innovation remains a supportive storyline, with McDonald’s rolling out new breakfast biscuits, a honey brown butter biscuit, and a Caesar menu that could help drive traffic and keep the brand in the conversation. McDonald’s Just Added 2 New Biscuits To Their Breakfast Menu
• Neutral Sentiment: Recent consumer-interest articles and product reviews highlight new limited-time menu items, but these are not yet proven to materially change earnings expectations. Review: McDonald's Caesar sauce is the tangy menu addition we didn't know we needed
• Negative Sentiment: Zacks noted that McDonald’s stock fell while the broader market improved, reinforcing the view that investors are rotating away from the name for now. McDonald's (MCD) Stock Declines While Market Improves: Some Information for Investors
• Negative Sentiment: Bearish coverage says McDonald’s still may not be cheap enough despite the pullback, suggesting the market remains concerned about upside versus risk. McDonald's: Still Not Good Enough

Analyst Ratings Changes

MCD has been the subject of a number of recent research reports. Morgan Stanley cut their price objective on McDonald's from $331.00 to $322.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 15th. Evercore set a $350.00 target price on shares of McDonald's in a research note on Friday, May 8th. BTIG Research reaffirmed a "buy" rating and set a $370.00 price target on shares of McDonald's in a report on Thursday, May 7th. Erste Group Bank lowered shares of McDonald's from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Finally, Deutsche Bank Aktiengesellschaft set a $325.00 price objective on shares of McDonald's in a research report on Thursday, July 9th. Fifteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat, McDonald's currently has an average rating of "Moderate Buy" and an average price target of $336.32.

About McDonald's

McDonald's Corporation NYSE: MCD is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald's serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand's national and international expansion.

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