Ally Financial Inc. Buys Shares of 18,000 McDonald's Corporation $MCD

Key Points

• Ally Financial bought 18,000 McDonald’s shares during the second quarter, valued at approximately $4.9 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s most recent quarter showed mixed results: adjusted EPS of $3.38 beat estimates, while revenue of $7.10 billion fell slightly short but increased 3.7% year over year. The company also declared a quarterly dividend of $1.86 per share, representing a 2.7% annualized yield.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $325.88 price target, though some firms lowered targets. The company’s value-focused strategy and new beverage and promotional offerings could support sales, while food inflation and weaker traffic remain risks.

Ally Financial Inc. bought a new position in shares of McDonald's Corporation (NYSE:MCD - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 18,000 shares of the fast-food giant's stock, valued at approximately $4,866,000.

A number of other institutional investors and hedge funds have also recently made changes to their positions in the stock. Brighton Jones LLC grew its position in McDonald's by 21.6% during the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock worth $2,692,000 after acquiring an additional 1,649 shares during the last quarter. Revolve Wealth Partners LLC increased its holdings in McDonald's by 2.8% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock worth $563,000 after purchasing an additional 52 shares in the last quarter. Sivia Capital Partners LLC raised its position in McDonald's by 11.4% in the second quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant's stock valued at $589,000 after purchasing an additional 206 shares during the last quarter. United Bank raised its position in McDonald's by 6.0% in the second quarter. United Bank now owns 8,102 shares of the fast-food giant's stock valued at $2,367,000 after purchasing an additional 459 shares during the last quarter. Finally, Schnieders Capital Management LLC. raised its position in McDonald's by 2.5% in the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant's stock valued at $3,780,000 after purchasing an additional 312 shares during the last quarter. Institutional investors own 70.29% of the company's stock.

Key McDonald's News

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

• Positive Sentiment: McDonald’s is emphasizing value through sharper pricing, digital offers and improved franchise execution in the United States. Analysts see the “value reset” as a potential way to rebuild traffic and convert affordability-focused customers into sales growth. Can MCD's Value Reset Turn U.S. Traffic Weakness Into Sales Growth?
• Positive Sentiment: A beverage platform reportedly performing at or above plan in every market launched could provide a new source of sales momentum and potentially support the next McDonald’s stock rally. What Could Power The Next Rally In McDonald's Stock
• Positive Sentiment: Seasonal and promotional launches—including new fall beverages, a returning breakfast item, Hello Kitty-Godzilla Happy Meal toys, and an Xbox gaming partnership—could increase customer visits, digital engagement and limited-time sales. McDonald’s Happy Meal to bring Hello Kitty and Godzilla together
• Neutral Sentiment: Zacks forecasts McDonald’s third-quarter earnings, but the article does not indicate a major change to the company’s established earnings outlook. Zacks Research Forecasts McDonald's Q3 Earnings
• Neutral Sentiment: McDonald’s is adapting menus for regional preferences, including a Shravan menu in India. Such localization may help international relevance but has limited near-term significance for consolidated results. McDonald’s Shravan menu in India
• Negative Sentiment: Food inflation remains a risk, particularly for beef costs. A temporary tariff pause may not materially ease consumer prices or restaurant input pressures, potentially limiting margins and value initiatives. Trump's 90-Day Inflation Band-Aid
• Negative Sentiment: Some customers have criticized McDonald’s new fall iced coffee, raising a modest product-execution and demand risk. The discontinuation of Chicken Selects also highlights ongoing menu and supply-chain decisions, though neither item alone is likely to materially affect earnings. McDonald’s fall iced coffee criticism

Insiders Place Their Bets

In related news, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction that occurred 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 sale, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 8,348 shares of company stock worth $2,355,634 in the last ninety days. Insiders own 0.26% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on MCD shares. Weiss Ratings cut McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. Guggenheim cut their target price on shares of McDonald's from $320.00 to $290.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 5th. BTIG Research restated a "buy" rating and issued a $350.00 price target on shares of McDonald's in a research report on Wednesday, August 5th. Cfra raised shares of McDonald's to a "buy" rating in a research note on Friday, May 8th. Finally, Sanford C. Bernstein reiterated a "market perform" rating and set a $295.00 price target on shares of McDonald's in a report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $325.88.

McDonald's Stock Performance

McDonald's stock opened at $270.84 on Monday. The firm has a market cap of $191.66 billion, a price-to-earnings ratio of 22.00, a PEG ratio of 3.04 and a beta of 0.41. McDonald's Corporation has a 52-week low of $260.96 and a 52-week high of $341.75. The firm has a 50 day moving average price of $272.35 and a two-hundred day moving average price of $293.50.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same period in the prior year, the firm posted $3.19 EPS. The company's quarterly revenue was up 3.7% on a year-over-year basis. As a group, equities research analysts predict that McDonald's Corporation will post 12.88 EPS for the current fiscal year.

McDonald's Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be given a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald's's dividend payout ratio is 60.44%.

McDonald's Company Profile

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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