Arrowstreet Capital Limited Partnership Buys 533,448 Shares of McDonald's Corporation $MCD

Key Points

• Arrowstreet Capital increased its McDonald’s stake by 17.2% in Q1, buying 533,448 shares and bringing its holding to 3.64 million shares worth about $1.13 billion.
• McDonald’s reported stronger-than-expected quarterly results, with EPS of $2.83 and revenue of $6.52 billion, while revenue rose 9.4% year over year.
• The company also paid a quarterly dividend of $1.86 per share and received a mixed but generally positive analyst outlook, with a consensus rating of Moderate Buy and an average price target of $335.12.

Arrowstreet Capital Limited Partnership grew its position in McDonald's Corporation (NYSE:MCD - Free Report) by 17.2% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 3,637,785 shares of the fast-food giant's stock after purchasing an additional 533,448 shares during the quarter. McDonald's makes up approximately 0.6% of Arrowstreet Capital Limited Partnership's portfolio, making the stock its 26th largest holding. Arrowstreet Capital Limited Partnership owned 0.51% of McDonald's worth $1,130,587,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also modified their holdings of MCD. Caxton Associates LLP increased its stake in McDonald's by 7.7% during the first quarter. Caxton Associates LLP now owns 770 shares of the fast-food giant's stock valued at $239,000 after acquiring an additional 55 shares during the period. Liberty One Investment Management LLC lifted its stake in McDonald's by 13.5% during the first quarter. Liberty One Investment Management LLC now owns 90,393 shares of the fast-food giant's stock worth $28,093,000 after purchasing an additional 10,727 shares during the period. Infusive Asset Management Inc. lifted its stake in McDonald's by 1.6% during the first quarter. Infusive Asset Management Inc. now owns 13,082 shares of the fast-food giant's stock worth $4,066,000 after purchasing an additional 205 shares during the period. Dickmeyer Boyce Financial Management Inc. acquired a new stake in McDonald's during the first quarter valued at approximately $843,000. Finally, Gibbs Wealth Management boosted its holdings in McDonald's by 252.4% during the first quarter. Gibbs Wealth Management now owns 11,006 shares of the fast-food giant's stock valued at $3,421,000 after purchasing an additional 7,883 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at McDonald's

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 8,348 shares of company stock worth $2,355,634. Corporate insiders own 0.26% of the company's stock.

McDonald's Trading Down 0.3%

Shares of MCD stock opened at $262.70 on Friday. McDonald's Corporation has a 1 year low of $260.96 and a 1 year high of $341.75. The firm's 50 day moving average is $276.23 and its 200-day moving average is $299.11. The firm has a market capitalization of $186.65 billion, a price-to-earnings ratio of 21.66, a PEG ratio of 2.83 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating analysts' consensus estimates of $2.74 by $0.09. The business had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. McDonald's's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter last year, the business posted $2.67 earnings per share. On average, equities research analysts forecast that McDonald's Corporation will post 12.86 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were issued a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald's's payout ratio is currently 61.34%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on MCD shares. Wells Fargo & Company lowered their price objective on McDonald's from $320.00 to $300.00 and set an "overweight" rating on the stock in a research note on Thursday, July 16th. Rothschild & Co Redburn upgraded shares of McDonald's from a "sell" rating to a "neutral" rating and boosted their target price for the company from $260.00 to $306.00 in a research note on Thursday, April 23rd. BTIG Research reaffirmed a "buy" rating and issued a $370.00 target price on shares of McDonald's in a report on Thursday, May 7th. Cfra upgraded shares of McDonald's to a "buy" rating in a research report on Friday, May 8th. Finally, JPMorgan Chase & Co. cut their price target on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a report on Monday, May 11th. Fifteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $335.12.

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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