Arete Wealth Advisors LLC Has $10.21 Million Holdings in McDonald's Corporation $MCD

Key Points

• Arete Wealth Advisors cut its McDonald’s stake by 11.9% in the first quarter, selling 4,425 shares and retaining 32,857 shares valued at $10.21 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s beat quarterly expectations with earnings of $2.83 per share and revenue of $6.52 billion, up 9.4% year over year. The company declared a quarterly dividend of $1.86 per share, equivalent to a 2.7% yield at the reported share price.
• Analysts maintain a Moderate Buy consensus with an average price target of $333.32, well above the reported price of $272.82, although several firms recently lowered their targets and insiders have sold shares.

Arete Wealth Advisors LLC decreased its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 11.9% during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 32,857 shares of the fast-food giant's stock after selling 4,425 shares during the quarter. Arete Wealth Advisors LLC's holdings in McDonald's were worth $10,208,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in MCD. Vanguard Group Inc. raised its stake in shares of McDonald's by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock worth $22,112,675,000 after purchasing an additional 703,458 shares during the last quarter. State Street Corp boosted its position in shares of McDonald's by 2.7% during the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant's stock valued at $10,997,789,000 after buying an additional 959,140 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of McDonald's by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock valued at $5,195,965,000 after buying an additional 76,090 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in McDonald's by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant's stock worth $2,895,768,000 after buying an additional 277,617 shares in the last quarter. Finally, Norges Bank bought a new stake in McDonald's during the fourth quarter worth $2,890,438,000. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Trading Up 0.8%

Shares of McDonald's stock opened at $272.82 on Wednesday. The business's fifty day simple moving average is $275.60 and its 200 day simple moving average is $298.42. McDonald's Corporation has a 12 month low of $260.96 and a 12 month high of $341.75. The firm has a market capitalization of $193.84 billion, a P/E ratio of 22.49, a price-to-earnings-growth ratio of 2.91 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) 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 the consensus estimate of $6.47 billion. During the same quarter in the prior year, the company earned $2.67 EPS. The business's revenue for the quarter was up 9.4% on a year-over-year basis. Analysts predict that McDonald's Corporation will post 12.86 EPS for the current fiscal year.

McDonald's Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be issued a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald's's payout ratio is 61.34%.

Analyst Ratings Changes

MCD has been the subject of a number of analyst reports. Citigroup lowered their price target on McDonald's from $375.00 to $335.00 and set a "buy" rating for the company in a research report on Wednesday, July 15th. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a report on Friday, June 12th. Wells Fargo & Company reduced their target price on shares of McDonald's from $320.00 to $300.00 and set an "overweight" rating for the company in a research note on Thursday, July 16th. Erste Group Bank downgraded shares of McDonald's from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Finally, KeyCorp reissued an "overweight" rating on shares of McDonald's in a research report on Wednesday, July 15th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $333.32.

More McDonald's News

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

• Positive Sentiment: UBS maintained a Buy rating despite lowering its price target from $365 to $340, implying substantial potential upside from recent levels. The target reduction reflects a more cautious outlook, but the continued Buy rating provides a positive signal. UBS McDonald’s price target report
• Positive Sentiment: McDonald’s affirmed its quarterly dividend of $1.86 per share, payable September 16. Its long record of annual dividend increases may attract income-oriented investors, particularly with the stock trading well below its 52-week high. McDonald’s dividend and valuation analysis
• Positive Sentiment: Wall Street’s average price targets remain materially above the current share price, with some analysts viewing the pullback as a buying opportunity if McDonald’s can stabilize sales and restore growth. McDonald’s near 52-week low analysis

Insider Transactions at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction dated 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 approximately $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction dated 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 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 position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 8,348 shares of company stock worth $2,355,634 over the last three months. 0.26% of the stock is owned by insiders.

McDonald's 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.