Aviva PLC Buys 31,323 Shares of McDonald's Corporation $MCD

Key Points

• Aviva PLC increased its stake in McDonald’s by 5.5% in the fourth quarter, buying 31,323 additional shares and bringing its total holding to 600,794 shares valued at about $183.6 million.
• McDonald’s reported stronger-than-expected quarterly results, with earnings per share of $2.83 versus estimates of $2.74 and revenue of $6.52 billion, up 9.4% year over year.
• The company announced a quarterly dividend of $1.86 per share, payable June 16, which annualizes to $7.44 per share and yields about 2.6%. Analysts still rate the stock a “Moderate Buy,” though recent insider sales and mixed sentiment have added some caution.

Aviva PLC grew its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 5.5% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 600,794 shares of the fast-food giant's stock after acquiring an additional 31,323 shares during the period. Aviva PLC owned about 0.08% of McDonald's worth $183,621,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Harbour Investments Inc. increased its holdings in McDonald's by 84.4% during the fourth quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock valued at $10,853,000 after buying an additional 16,252 shares during the last quarter. Capital International Sarl increased its holdings in McDonald's by 10.4% during the fourth quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant's stock valued at $19,639,000 after buying an additional 6,079 shares during the last quarter. Pittenger & Anderson Inc. increased its holdings in McDonald's by 21.9% during the fourth quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock valued at $6,567,000 after buying an additional 3,866 shares during the last quarter. North Dakota State Investment Board purchased a new stake in McDonald's during the fourth quarter valued at approximately $7,493,000. Finally, Schroder Investment Management Group increased its holdings in McDonald's by 5.2% during the third quarter. Schroder Investment Management Group now owns 1,029,572 shares of the fast-food giant's stock valued at $312,877,000 after buying an additional 51,039 shares during the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald's Price Performance

MCD opened at $285.02 on Friday. The firm has a market cap of $202.51 billion, a P/E ratio of 23.50, a PEG ratio of 2.81 and a beta of 0.41. McDonald's Corporation has a 1-year low of $271.85 and a 1-year high of $341.75. The company has a 50 day simple moving average of $289.83 and a two-hundred day simple moving average of $306.90.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping 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%. The company's revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the business posted $2.67 earnings per share. Equities analysts anticipate that McDonald's Corporation will post 12.93 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, June 16th. Investors of record on Tuesday, June 2nd will be given a dividend of $1.86 per share. The ex-dividend date is Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.6%. McDonald's's dividend payout ratio is currently 61.34%.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s new FIFA World Cup meal promotions, collectible cups, and Squishmallows tie-ins could lift traffic and drive incremental sales through limited-time demand. McDonald's FIFA World Cup meals with Squishmallows and 9 collectible cups are here
• Positive Sentiment: McDonald’s is testing AI-powered drive-thru systems, which could improve service speed, reduce labor pressure, and support margins if the rollout works well. McDonald’s testing AI drive-thru system at select US locations
• Positive Sentiment: Analyst sentiment remains constructive, with coverage pointing to a “Moderate Buy” consensus on MCD. McDonald's Corporation NYSE: MCD Given Consensus Rating of "Moderate Buy" by Analysts
• Neutral Sentiment: McDonald’s is receiving additional attention from commentary framing it as a long-term buy-on-weakness name, but this is more sentiment than a fresh fundamental catalyst. Jim Cramer Discusses a Strategic Buying Plan to Build a Great Cost Basis in McDonald’s
• Negative Sentiment: An insider sale by executive Joseph M. Erlinger may weigh on sentiment, even though insider sales do not always indicate a weaker outlook. Joseph M. Erlinger insider sale
• Negative Sentiment: Recent analysis highlighted that MCD shares have fallen over the past few months amid cost pressures, weaker low-income demand, and slower sales growth, which remains a key overhang for the stock. McDonald's Stock Slides 13% in 3 Months: Buy the Dip or Stay Away?
• Negative Sentiment: There is also some concern around customer frustration with drive-thru changes and workplace safety scrutiny, which could hurt brand perception if the issues persist. McDonald's quietly makes a major change to its drive thru and customers are furious

Insiders Place Their Bets

In related news, insider Joseph M. Erlinger sold 5,252 shares of the company's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This 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 this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company'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 transaction, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 11,307 shares of company stock valued at $3,262,622. 0.26% of the stock is owned by company insiders.

Analyst Ratings Changes

MCD has been the subject of a number of research reports. Argus raised shares of McDonald's from a "hold" rating to a "buy" rating and set a $380.00 target price for the company in a report on Friday, February 13th. Royal Bank Of Canada reduced their target price on shares of McDonald's from $330.00 to $305.00 and set a "sector perform" rating for the company in a report on Friday, May 8th. BTIG Research reaffirmed a "buy" rating and set a $370.00 target price on shares of McDonald's in a report on Thursday, May 7th. Weiss Ratings cut shares of McDonald's from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, May 29th. Finally, Robert W. Baird set a $305.00 target price on shares of McDonald's in a report on Thursday, May 7th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, McDonald's currently has a consensus rating of "Moderate Buy" and a consensus target price of $336.26.

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.

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