AXQ Capital LP Makes New $2.26 Million Investment in McDonald's Corporation $MCD

AXQ Capital LP purchased a new stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 8,345 shares of the fast-food giant's stock, valued at approximately $2,256,000.

Other hedge funds have also added to or reduced their stakes in the company. IFC & Insurance Marketing Inc. purchased a new position in McDonald's in the 4th quarter valued at approximately $29,000. Abound Financial LLC bought a new position in shares of McDonald's in the fourth quarter worth $30,000. Purpose Unlimited Inc. bought a new position in shares of McDonald's in the fourth quarter worth $31,000. Entrust Financial LLC bought a new stake in shares of McDonald's during the 4th quarter valued at $31,000. Finally, GKV Capital Management Co. Inc. bought a new stake in shares of McDonald's during the 1st quarter valued at $33,000. Institutional investors own 70.29% of the company's stock.

Insider Activity at McDonald's

In related news, insider Joseph Erlinger sold 5,252 shares of the business's stock in a transaction on 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 transaction, the insider owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.26% of the company's stock.

Trending Headlines about McDonald's

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

• Positive Sentiment: Valuation may attract contrarian buyers: McDonald’s is trading at roughly 19.15 times earnings, below the restaurant industry’s average multiple. Analysts point to global expansion, digital initiatives and new product efforts as possible catalysts for a recovery. McDonald's Trades at 19.15X P/E: Is This a Discounted Opportunity?
• Positive Sentiment: Promotional activity could support traffic: McDonald’s is bringing back popular menu items, launching a Texas-themed meal with collectible cups and promoting limited-time products. These campaigns may encourage visits and improve near-term sales, though their financial impact is unproven. McDonald's launches exclusive state-themed meal
• Neutral Sentiment: Brand visibility remains high: Coverage of McDonald’s breakfast offerings, Grimace appearances, collectible merchandise and Warren Buffett’s long-standing affinity for the brand reinforces consumer awareness but is unlikely to materially change earnings expectations. The best McDonald’s breakfast sandwich isn’t on the menu
• Negative Sentiment: U.S. consumer weakness is the main concern: Reports describe consumer-focused stocks, including McDonald’s, as signaling softer spending in middle America. Articles also highlight customers shifting to competing fast-food chains, increasing pressure on traffic and comparable sales. Wall Street worried about consumer stocks
• Negative Sentiment: Value positioning remains problematic: Coverage says McDonald’s $3 value offering has not fully delivered for customers or the company, raising concerns about affordability, franchisee economics and the effectiveness of discounting. Why you can't find McDonald's $3 value menu

Analysts Set New Price Targets

A number of research firms have recently commented on MCD. Citigroup raised their price objective on shares of McDonald's from $335.00 to $345.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Tigress Financial upped their target price on shares of McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a report on Friday, July 17th. BTIG Research reiterated a "buy" rating and issued a $350.00 target price on shares of McDonald's in a research note on Wednesday, August 5th. Cfra raised shares of McDonald's to a "buy" rating in a report on Friday, May 8th. Finally, Royal Bank Of Canada reduced their price target on shares of McDonald's from $305.00 to $295.00 and set a "sector perform" rating for the company in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, McDonald's presently has an average rating of "Moderate Buy" and a consensus price target of $321.35.

McDonald's Stock Down 1.5%

Shares of MCD opened at $255.69 on Friday. McDonald's Corporation has a 52 week low of $255.49 and a 52 week high of $341.75. The stock has a market cap of $180.94 billion, a price-to-earnings ratio of 20.77, a PEG ratio of 2.80 and a beta of 0.41. The business has a 50-day simple moving average of $269.67 and a two-hundred day simple moving average of $289.39.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. The business had revenue of $7.10 billion for the quarter, compared to analysts' expectations of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The business's quarterly revenue was up 3.7% on a year-over-year basis. During the same period last year, the firm earned $3.19 earnings per share. On average, equities analysts anticipate that McDonald's Corporation will post 12.87 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Tuesday, September 1st. McDonald's's payout ratio is 60.44%.

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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