Allworth Financial LP Cuts Position in McDonald's Corporation $MCD

Key Points

• Allworth Financial reduced its McDonald’s stake by 36.3% in the second quarter, selling 28,085 shares and retaining 49,259 shares valued at approximately $13.3 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s exceeded quarterly earnings expectations, reporting $3.38 in EPS versus a $3.32 consensus, while revenue reached $7.10 billion and increased 3.7% year over year. The company also declared a $1.86 quarterly dividend, representing a 2.9% yield.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and a $321.35 average price target, although concerns remain about slowing U.S. sales and execution challenges.

Allworth Financial LP trimmed its position in McDonald's Corporation (NYSE:MCD - Free Report) by 36.3% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 49,259 shares of the fast-food giant's stock after selling 28,085 shares during the quarter. Allworth Financial LP's holdings in McDonald's were worth $13,315,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. IFC & Insurance Marketing Inc. acquired a new position in McDonald's during the fourth quarter worth approximately $29,000. Abound Financial LLC acquired a new position in McDonald's in the fourth quarter valued at $30,000. Entrust Financial LLC acquired a new position in McDonald's in the fourth quarter valued at $31,000. Purpose Unlimited Inc. purchased a new stake in shares of McDonald's in the fourth quarter valued at about $31,000. Finally, GKV Capital Management Co. Inc. purchased a new stake in shares of McDonald's in the first quarter valued at about $33,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald's Price Performance

McDonald's stock opened at $255.53 on Wednesday. McDonald's Corporation has a 1-year low of $254.28 and a 1-year high of $341.75. The company has a market cap of $180.82 billion, a PE ratio of 20.76, a price-to-earnings-growth ratio of 2.76 and a beta of 0.41. The stock's 50 day moving average price is $269.13 and its 200 day moving average price is $288.10.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. The firm 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 quarterly revenue was up 3.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.19 earnings per share. On average, equities research analysts anticipate that McDonald's Corporation will post 12.87 EPS for the current fiscal year.

McDonald's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a dividend yield of 2.9%. McDonald's's dividend payout ratio (DPR) is 60.44%.

McDonald's News Summary

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

• Positive Sentiment: A slower pace of restaurant expansion could help McDonald’s protect returns on new locations as construction costs rise and consumers remain price-sensitive. More disciplined development may support margins and capital efficiency. Can MCD's Slower Expansion Pace Help Protect New-Restaurant Returns?
• Positive Sentiment: One Milwaukee franchisee reported double-digit sales growth, attributing the improvement to local execution and operating initiatives. While anecdotal, the report suggests individual operators can still outperform despite broader U.S. sales concerns. McDonald’s franchisee sales are up
• Positive Sentiment: McDonald’s was highlighted as a defensive restaurant stock ahead of inflation data and a Federal Reserve decision, reflecting the company’s resilient brand, franchised business model and dividend profile. Defensive stocks to watch
• Neutral Sentiment: CEO commentary indicates that families and other unexpected customer groups are increasingly turning to Happy Meals, prompting McDonald’s to reassess its strategy. The potential traffic opportunity is constructive, but the article does not provide quantified sales guidance. McDonald’s CEO on Happy Meals
• Neutral Sentiment: A planned U.K. interactive restaurant where customers can make their own burgers could generate publicity and test new customer experiences, but its financial impact is likely limited in the near term. New U.K. McDonald’s store
• Negative Sentiment: Coverage continues to emphasize slowing U.S. sales and execution missteps, reinforcing concerns that McDonald’s may be losing momentum versus other franchised restaurant operators. Why franchise models are winning
• Negative Sentiment: McDonald’s deleted a viral social-media post involving a controversial intern claim. Although unlikely to affect fundamentals, the incident creates avoidable reputational and communications risk. McDonald’s deletes viral post

Analyst Upgrades and Downgrades

MCD has been the topic of a number of research reports. Sanford C. Bernstein reissued a "market perform" rating and set a $295.00 price target on shares of McDonald's in a report on Wednesday, August 5th. Wells Fargo & Company reduced their price objective on McDonald's from $320.00 to $300.00 and set an "overweight" rating for the company in a research note on Thursday, July 16th. KeyCorp decreased their price objective on McDonald's from $315.00 to $305.00 and set an "overweight" rating for the company in a research report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft lifted their target price on McDonald's from $335.00 to $345.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Finally, Citigroup boosted their target price on McDonald's from $335.00 to $345.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $321.35.

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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