Assenagon Asset Management S.A. Grows Stock Holdings in McDonald's Corporation $MCD

Key Points

• Institutional ownership increased: Assenagon Asset Management raised its McDonald’s stake by 63.1% to 556,267 shares, while institutional investors collectively own 70.29% of the company.
• Quarterly results beat expectations: McDonald’s reported adjusted EPS of $3.38 versus the $3.32 consensus, with revenue up 3.7% year over year to $7.10 billion. Analysts maintain a “Moderate Buy” consensus and an average price target of $325.44.
• U.S. growth remains a concern: Domestic comparable sales rose only 0.8%, as management cited value-menu complexity, fewer digital discounts and weaker lower-income consumer spending. The company is reviewing its value strategy and has appointed a new U.S. leader, while shares offer a 2.7% dividend yield.

Assenagon Asset Management S.A. raised its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 63.1% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 556,267 shares of the fast-food giant's stock after acquiring an additional 215,304 shares during the quarter. Assenagon Asset Management S.A. owned about 0.08% of McDonald's worth $150,365,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

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

Analyst Upgrades and Downgrades

A number of research firms have recently commented on MCD. Rothschild & Co Redburn upgraded shares of McDonald's from a "sell" rating to a "neutral" rating and raised their price objective for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Wells Fargo & Company decreased their target price on shares of McDonald's from $320.00 to $300.00 and set an "overweight" rating on the stock in a report on Thursday, July 16th. Evercore set a $320.00 target price on shares of McDonald's in a research note on Thursday, July 23rd. Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $295.00 price target on shares of McDonald's in a report on Wednesday. Finally, Weiss Ratings cut shares of McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. Sixteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $325.44.

McDonald's News Summary

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

• Positive Sentiment: Quarterly profit exceeded expectations. McDonald’s reported adjusted earnings of $3.38 per share, above the $3.32 consensus estimate, while revenue rose 3.7% year over year to $7.10 billion. The earnings beat and 31.7% net margin provide support for the stock. McDonald’s posts strong second quarter profit, names new leader for US market
• Positive Sentiment: Analyst support and income appeal remain intact. BTIG reaffirmed its Buy rating with a $350 price target, while the stock’s dividend and consensus Moderate Buy view may attract investors after the recent weakness. BTIG rating reaffirmed
• Positive Sentiment: Management is taking corrective action. McDonald’s appointed a new U.S. leader and is reviewing value offers, digital promotions, restaurant workloads and marketing execution. Stronger international performance could help offset domestic softness. MCD Q2 Earnings Call Flags U.S. Execution Gaps
• Neutral Sentiment: Price targets were reduced but remain above the current level. Morgan Stanley, RBC and Baird lowered their targets to $319, $295 and $285, respectively, citing a more cautious near-term outlook. Their ratings range from Equal Weight to Neutral. Analyst price-target changes
• Negative Sentiment: U.S. growth remains the central concern. Domestic comparable sales rose only 0.8% in the second quarter, and management acknowledged that the current value menu is too complicated and that reduced digital discounts have hurt traffic. Lower-income customers are also spending less at McDonald’s. McDonald’s Looks to Fix a Value Misfire
• Negative Sentiment: Competitive pressure is increasing. Burger King is gaining U.S. sales momentum after revamping its Whopper, while McDonald’s expansion toward 50,000 restaurants is taking longer than planned because of economic conditions. Burger King’s US sales surge while McDonald’s growth flails

McDonald's Price Performance

Shares of MCD opened at $276.05 on Friday. McDonald's Corporation has a 1-year low of $260.96 and a 1-year high of $341.75. The company has a market capitalization of $196.13 billion, a P/E ratio of 22.42, a P/E/G ratio of 2.94 and a beta of 0.41. The firm's 50 day simple moving average is $274.14 and its 200 day simple moving average is $296.58.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 512.80%. The business's quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.19 EPS. On average, equities analysts anticipate that McDonald's Corporation will post 12.86 earnings per share for the current year.

McDonald's Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be given a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald's's payout ratio is 60.44%.

Insiders Place Their Bets

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of McDonald'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 completion of the sale, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction dated 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 transaction, the executive vice president owned 6,268 shares of the company's stock, valued at $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. In the last three months, insiders sold 8,348 shares of company stock worth $2,355,634. 0.26% of the stock is owned by insiders.

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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