Baillie Gifford & Co. Reduces Holdings in McDonald's Corporation $MCD

Key Points

• Baillie Gifford trimmed its stake in McDonald's by 2.8% in Q4, selling 3,654 shares to hold 126,880 shares worth about $38.78 million after the period.
• Analyst sentiment is mixed: several upgrades and higher price targets (e.g., Barclays $380, Oppenheimer $355) contrast with other downgrades, leaving a consensus "Hold" rating and a consensus target of about $339.69.
• Insiders sold heavily last quarter (71,657 shares worth ~$23.7M, including CMO and U.S. president sales), while McDonald's pursues beverage and value‑menu initiatives amid near‑term share weakness (stock recently around $304.48 and down over 6% this month).

Baillie Gifford & Co. decreased its position in McDonald's Corporation (NYSE:MCD - Free Report) by 2.8% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 126,880 shares of the fast-food giant's stock after selling 3,654 shares during the period. Baillie Gifford & Co.'s holdings in McDonald's were worth $38,778,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in MCD. FSM Wealth Advisors LLC boosted its position in shares of McDonald's by 3.9% during the 4th quarter. FSM Wealth Advisors LLC now owns 1,996 shares of the fast-food giant's stock worth $610,000 after purchasing an additional 74 shares during the period. James J. Burns & Company LLC boosted its position in shares of McDonald's by 58.5% during the 4th quarter. James J. Burns & Company LLC now owns 1,336 shares of the fast-food giant's stock worth $408,000 after purchasing an additional 493 shares during the period. ABLE Financial Group LLC boosted its position in shares of McDonald's by 5.3% during the 4th quarter. ABLE Financial Group LLC now owns 1,736 shares of the fast-food giant's stock worth $531,000 after purchasing an additional 88 shares during the period. Oxler Private Wealth LLC boosted its position in shares of McDonald's by 0.6% during the 4th quarter. Oxler Private Wealth LLC now owns 6,306 shares of the fast-food giant's stock worth $1,927,000 after purchasing an additional 37 shares during the period. Finally, Legacy Financial Strategies LLC boosted its position in shares of McDonald's by 104.6% during the 4th quarter. Legacy Financial Strategies LLC now owns 1,412 shares of the fast-food giant's stock worth $431,000 after purchasing an additional 722 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Analysts Set New Price Targets

MCD has been the subject of a number of research analyst reports. Oppenheimer raised shares of McDonald's from a "market perform" rating to an "outperform" rating and set a $355.00 price objective for the company in a research report on Tuesday, January 6th. Barclays increased their price objective on shares of McDonald's from $372.00 to $380.00 and gave the stock an "overweight" rating in a research report on Thursday, February 12th. Robert W. Baird set a $335.00 price objective on shares of McDonald's in a research report on Thursday, February 12th. Truist Financial increased their price objective on shares of McDonald's from $356.00 to $370.00 and gave the stock a "buy" rating in a research report on Thursday, February 12th. Finally, Guggenheim lowered their price objective on shares of McDonald's from $325.00 to $320.00 and set a "neutral" rating for the company in a research report on Friday, February 13th. Seventeen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, McDonald's has an average rating of "Hold" and a consensus target price of $339.69.

McDonald's News Roundup

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

• Positive Sentiment: Major beverage expansion — McDonald’s plans to add energy drinks (including Red Bull mixes), specialty sodas and refreshers nationwide, a push aimed at lifting traffic, increasing ticket size and improving beverage margins; Wall Street coverage frames this as a strategic growth lever for a slowed core business. Article Title
• Positive Sentiment: Value menu expansion — McDonald’s is doubling down on a new “under $3” menu to drive transactions and low‑price traffic, which could help offset soft comps and support unit-level sales recovery. Article Title
• Neutral Sentiment: Cultural buzz and marketing noise — viral CEO tasting clips and promotional tie‑ins (e.g., K‑pop collaboration) are creating social engagement that can support short‑term traffic but are hard to quantify for long‑term financial impact. Article Title
• Negative Sentiment: Insider sale disclosed — President of U.S. operations Joseph Erlinger sold 2,626 shares under a prearranged 10b5-1 plan; while routine, insider selling can weigh on sentiment when combined with other negatives. Article Title
• Negative Sentiment: Near‑term share weakness & sector pressure — MCD has fallen over 6% this month amid broader consumer/coffee‑chain softness; reports note coffee/energy competitors saw share moves after McDonald’s beverage news, adding volatility. Article Title Article Title

Insider Buying and Selling at McDonald's

In other McDonald's news, CMO Edith Morgan Flatley sold 4,692 shares of the stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $331.00, for a total transaction of $1,553,052.00. Following the sale, the chief marketing officer directly owned 6,200 shares in the company, valued at $2,052,200. This represents a 43.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Joseph M. Erlinger sold 2,626 shares of the stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $307.00, for a total transaction of $806,182.00. Following the sale, the insider owned 8,400 shares in the company, valued at approximately $2,578,800. This trade represents a 23.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 71,657 shares of company stock valued at $23,723,307 in the last quarter. Corporate insiders own 0.25% of the company's stock.

McDonald's Stock Down 0.4%

McDonald's stock opened at $304.48 on Tuesday. The firm has a market cap of $216.43 billion, a PE ratio of 25.48, a price-to-earnings-growth ratio of 2.72 and a beta of 0.53. McDonald's Corporation has a 52-week low of $283.47 and a 52-week high of $341.75. The company's 50 day moving average is $320.92 and its two-hundred day moving average is $311.79.

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

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 17th. Shareholders of record on Tuesday, March 3rd were issued a dividend of $1.86 per share. The ex-dividend date was Tuesday, March 3rd. This represents a $7.44 dividend on an annualized basis and a yield of 2.4%. McDonald's's dividend payout ratio is 62.26%.

McDonald's Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.