AIA Group Ltd Sells 5,734 Shares of McDonald's Corporation $MCD

Key Points

• AIA Group cut its McDonald’s stake by 42.5% in the third quarter, selling 5,734 shares. It held 7,763 shares worth about $1.79 million at quarter-end.
• McDonald’s quarterly adjusted EPS of $3.57 beat estimates, but revenue of $7.16 billion missed expectations; U.S. comparable sales fell 0.2%, their first decline in six quarters.
• The company raised its quarterly dividend to $1.93 per share from $1.86, equivalent to an annualized dividend of $7.72 and a 2.8% yield.

AIA Group Ltd reduced its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 42.5% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 7,763 shares of the fast-food giant's stock after selling 5,734 shares during the period. AIA Group Ltd's holdings in McDonald's were worth $1,793,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in the stock. Provenance Wealth Advisors LLC lifted its position in shares of McDonald's by 1,054.6% during the 3rd quarter. Provenance Wealth Advisors LLC now owns 5,265 shares of the fast-food giant's stock valued at $1,216,000 after buying an additional 4,809 shares in the last quarter. TrinityBridge Ltd lifted its stake in shares of McDonald's by 2.2% during the 3rd quarter. TrinityBridge Ltd now owns 73,644 shares of the fast-food giant's stock valued at $17,018,000 after buying an additional 1,609 shares in the last quarter. Integras Partners LLC boosted its holdings in McDonald's by 1.5% in the 3rd quarter. Integras Partners LLC now owns 10,715 shares of the fast-food giant's stock worth $2,474,000 after buying an additional 158 shares during the period. Associated Banc Corp purchased a new stake in McDonald's in the 3rd quarter worth $22,964,000. Finally, Putney Financial Group LLC bought a new stake in McDonald's during the third quarter valued at about $55,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about McDonald's

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

• Positive Sentiment: Third-quarter adjusted EPS was $3.57, above the $3.38 analyst estimate, with stronger franchised margins contributing. Global comparable sales rose 1.5%, led by international markets. McDonald's Q3 Earnings Beat on Franchised Margins, Revenues Miss
• Positive Sentiment: Management says U.S. sales improved as the quarter progressed and is planning more affordable bundles, digital deals, and other value initiatives to attract budget-conscious customers. Investors may view these plans as a path to a domestic rebound. McDonald’s Puts Focus on Entry-Level Value to Lift Sluggish Sales
• Neutral Sentiment: Holiday drink offerings and a Pokémon Happy Meal promotion add seasonal marketing opportunities, though their impact on overall sales is uncertain. McDonald's Pokémon Happy Meal Returns Nov. 10 With Cards
• Negative Sentiment: Revenue of $7.16 billion fell short of expectations near $7.28 billion. U.S. comparable sales declined 0.2%—the first drop in six quarters—as customers facing high living costs pulled back and restaurant traffic weakened. McDonald's US sales decline for first time in six quarters despite value push
• Negative Sentiment: Value promotions may pressure economics and come amid reported tensions with franchisees. Separately, a judge allowed a lawsuit challenging McRib marketing to proceed, creating a potential legal and reputational overhang. McDonald’s facing lawsuit over meat in cult-favorite sandwich

McDonald's Trading Up 6.5%

Shares of NYSE:MCD opened at $280.20 on Thursday. The business's fifty day simple moving average is $248.20 and its 200-day simple moving average is $282.85. McDonald's Corporation has a 12-month low of $229.20 and a 12-month high of $341.75. The company has a market capitalization of $198.28 billion, a PE ratio of 20.96, a P/E/G ratio of 3.01 and a beta of 0.42.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 EPS for the quarter, beating analysts' consensus estimates of $3.38 by $0.19. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%. The firm had revenue of $7.16 billion for the quarter, compared to analysts' expectations of $7.28 billion. During the same period last year, the firm earned $3.22 EPS. The company's quarterly revenue was up 1.1% on a year-over-year basis. Research analysts predict that McDonald's Corporation will post 12.82 EPS for the current year.

McDonald's Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a $1.93 dividend. This is an increase from McDonald's's previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Tuesday, December 1st. McDonald's's payout ratio is presently 60.44%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on MCD. HC Wainwright set a $250.00 price objective on McDonald's in a research note on Friday, September 25th. Freedom Capital raised shares of McDonald's from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 5th. Jefferies Financial Group lowered their target price on shares of McDonald's from $260.00 to $250.00 and set an "overweight" rating on the stock in a report on Tuesday, September 29th. BMO Capital Markets dropped their target price on shares of McDonald's from $335.00 to $310.00 and set an "outperform" rating for the company in a research report on Thursday, September 24th. Finally, Evercore reduced their price target on shares of McDonald's from $320.00 to $300.00 and set an "outperform" rating on the stock in a report on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, McDonald's has an average rating of "Moderate Buy" and a consensus price target of $293.21.

About McDonald's

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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