Arrowstreet Capital Limited Partnership Buys 1,090,849 Shares of McDonald's Corporation $MCD

Key Points

• Arrowstreet Capital Limited Partnership boosted its stake in McDonald's by 111.3% in the third quarter, adding 1,090,849 shares to hold 2,071,296 shares worth about $629.4 million (≈0.29% of the company).
• McDonald's beat expectations for the most recent quarter with $3.12 EPS vs. $3.05 consensus and $7.01 billion in revenue (+9.7% year-over-year); analysts' consensus target price is $339.69 with an average rating of "Hold."
• Dividend announced: McDonald's will pay a quarterly dividend of $1.86 (annualized $7.44) on March 17 to shareholders of record March 3, implying a yield of about 2.3%.

Arrowstreet Capital Limited Partnership grew its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 111.3% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 2,071,296 shares of the fast-food giant's stock after acquiring an additional 1,090,849 shares during the quarter. Arrowstreet Capital Limited Partnership owned 0.29% of McDonald's worth $629,446,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently made changes to their positions in the stock. Evergreen Private Wealth LLC boosted its position in McDonald's by 162.5% during the 3rd quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant's stock worth $26,000 after acquiring an additional 52 shares during the last quarter. Financial Gravity Companies Inc. acquired a new stake in McDonald's during the 2nd quarter valued at $29,000. Traub Capital Management LLC bought a new position in McDonald's during the second quarter worth $29,000. Davis Capital Management acquired a new stake in McDonald's during the 3rd quarter worth approximately $37,000. Finally, Miller Wealth Advisors LLC bought a new position in shares of McDonald's during the third quarter worth approximately $38,000. Institutional investors and hedge funds own 70.29% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Argus upgraded McDonald's from a "hold" rating to a "buy" rating and set a $380.00 price target for the company in a research note on Friday, February 13th. Royal Bank Of Canada boosted their price objective on shares of McDonald's from $320.00 to $330.00 and gave the company a "sector perform" rating in a research report on Thursday, February 12th. TD Cowen reiterated a "hold" rating and set a $320.00 price objective on shares of McDonald's in a research report on Thursday, February 12th. Piper Sandler increased their price objective on shares of McDonald's from $323.00 to $325.00 and gave the company a "neutral" rating in a research note on Thursday, February 12th. Finally, Tigress Financial raised their target price on shares of McDonald's from $360.00 to $385.00 and gave the company a "buy" rating in a research report on Friday, March 6th. Seventeen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, McDonald's has an average rating of "Hold" and a consensus target price of $339.69.

McDonald's Stock Down 0.3%

Shares of MCD stock opened at $324.09 on Friday. The firm has a 50 day moving average of $319.82 and a 200-day moving average of $311.43. The company has a market cap of $230.23 billion, a price-to-earnings ratio of 27.12, a price-to-earnings-growth ratio of 2.89 and a beta of 0.51. McDonald's Corporation has a 52 week low of $283.47 and a 52 week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, beating analysts' consensus estimates of $3.05 by $0.07. McDonald's had a negative return on equity of 343.90% and a net margin of 31.85%.The business had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.81 billion. During the same period in the previous year, the company posted $2.83 EPS. The firm's revenue was up 9.7% compared to the same quarter last year. Analysts anticipate that McDonald's Corporation will post 12.25 earnings per share for the current year.

McDonald's Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 17th. Shareholders of record on Tuesday, March 3rd will be paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Tuesday, March 3rd. McDonald's's payout ratio is presently 62.26%.

Trending Headlines about McDonald's

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

• Positive Sentiment: Value strategy could increase traffic and win back price‑sensitive customers — McDonald’s plans $3 items and $4 breakfast deals starting in April, which investors view as a demand stimulus. McDonald's to launch new $3 value items in US starting April, WSJ reports
• Positive Sentiment: Analyst bullishness: Tigress Financial raised its price target to $385 and reiterated a Buy, citing McDonald’s multi‑year growth strategy and brand strength — a direct positive for investor sentiment. Tigress Financial Upgrades McDonald’s Corporation (MCD) Price Target
• Positive Sentiment: Digital & loyalty tailwinds: McDonald’s loyalty ecosystem (near ~210M active users) can lift visit frequency and enable targeted promotions that amplify the value push. Can MCD's Digital Ecosystem Turn Loyalty Into Higher Visit Frequency?
• Neutral Sentiment: Marketing & product chatter (Big Arch review, menu renames, viral CEO burger video) raise brand visibility but are unlikely to change near‑term fundamentals by themselves. McDonald's Big Arch review
• Neutral Sentiment: PR/branding note: CEO’s viral burger video and meme-driven engagement have monetization and awareness upside but are incremental to core sales drivers. How McDonald's CEO's viral burger video turned memes into money
• Negative Sentiment: Margin/public‑reaction risk: Some online voices flag concerns the deeper discounting could pressure margins or signal desperation, a potential risk if traffic lift and upsells don’t offset lower price points. McDonald's planning value menu, internet has one major concern
• Negative Sentiment: Insider sale: Executive Joseph Erlinger sold ~2,626 shares (~$862k), which can be interpreted as a mild negative signal even though such sales may be routine. Insider sale filing

Insider Activity at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,486 shares of McDonald's stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $320.00, for a total value of $795,520.00. Following the completion of the sale, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $2,005,760. This trade represents a 28.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Jonathan Banner sold 6,201 shares of McDonald's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $333.29, for a total value of $2,066,731.29. Following the completion of the transaction, the executive vice president owned 2,291 shares of the company's stock, valued at approximately $763,567.39. This trade represents a 73.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 74,143 shares of company stock worth $24,517,724 in the last three months. Corporate insiders own 0.25% of the company's stock.

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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