Baird Financial Group Inc. Has $157.92 Million Position in McDonald's Corporation $MCD

Key Points

• Baird Financial Group reduced its McDonald’s position by 2.3% in the second quarter, selling 13,900 shares and retaining 584,204 shares valued at approximately $157.9 million. Institutional investors collectively own 70.29% of the company.
• Analysts maintain a generally positive outlook, with McDonald’s carrying a “Moderate Buy” consensus rating and an average price target of $321.35, despite some target-price reductions and hold ratings.
• McDonald’s beat quarterly earnings estimates with $3.38 in adjusted EPS, while revenue rose 3.7% year over year to $7.10 billion. The company also declared a quarterly dividend of $1.86 per share, equivalent to a 2.9% annualized yield.

Baird Financial Group Inc. lowered its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 2.3% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 584,204 shares of the fast-food giant's stock after selling 13,900 shares during the quarter. Baird Financial Group Inc. owned 0.08% of McDonald's worth $157,916,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently modified their holdings of MCD. Stableford Capital II LLC raised its position in shares of McDonald's by 16.8% in the second quarter. Stableford Capital II LLC now owns 3,467 shares of the fast-food giant's stock valued at $937,000 after purchasing an additional 499 shares during the period. CORDA Investment Management LLC. boosted its holdings in shares of McDonald's by 5.4% in the second quarter. CORDA Investment Management LLC. now owns 89,124 shares of the fast-food giant's stock worth $24,091,000 after acquiring an additional 4,571 shares during the period. Arizona State Retirement System boosted its holdings in shares of McDonald's by 1.0% in the second quarter. Arizona State Retirement System now owns 197,122 shares of the fast-food giant's stock worth $53,284,000 after acquiring an additional 2,005 shares during the period. Edge Wealth Management LLC grew its position in shares of McDonald's by 0.6% in the second quarter. Edge Wealth Management LLC now owns 24,312 shares of the fast-food giant's stock valued at $6,572,000 after purchasing an additional 141 shares in the last quarter. Finally, Waverly Advisors LLC grew its position in shares of McDonald's by 39.4% in the second quarter. Waverly Advisors LLC now owns 169,676 shares of the fast-food giant's stock valued at $45,865,000 after purchasing an additional 47,943 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. UBS Group set a $305.00 price objective on McDonald's in a report on Wednesday, August 5th. Tigress Financial lifted their target price on McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a report on Friday, July 17th. TD Cowen reiterated a "hold" rating on shares of McDonald's in a research report on Tuesday, August 4th. KeyCorp lowered their price target on shares of McDonald's from $315.00 to $305.00 and set an "overweight" rating on the stock in a report on Wednesday, August 5th. Finally, Robert W. Baird raised shares of McDonald's to a "hold" rating in a research note on Monday, August 24th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $321.35.

McDonald's Trading Down 0.1%

Shares of NYSE MCD opened at $255.53 on Wednesday. McDonald's Corporation has a 12 month low of $254.28 and a 12 month high of $341.75. The firm has a market capitalization of $180.82 billion, a price-to-earnings ratio of 20.76, a PEG ratio of 2.76 and a beta of 0.41. The business has a 50-day moving average of $269.13 and a 200-day moving average of $288.10.

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

McDonald's Dividend Announcement

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

Key Headlines Impacting McDonald's

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

• Positive Sentiment: A slower pace of restaurant expansion could help McDonald’s protect returns on new locations as construction costs rise and consumers remain price-sensitive. More disciplined development may support margins and capital efficiency. Can MCD's Slower Expansion Pace Help Protect New-Restaurant Returns?
• Positive Sentiment: One Milwaukee franchisee reported double-digit sales growth, attributing the improvement to local execution and operating initiatives. While anecdotal, the report suggests individual operators can still outperform despite broader U.S. sales concerns. McDonald’s franchisee sales are up
• Positive Sentiment: McDonald’s was highlighted as a defensive restaurant stock ahead of inflation data and a Federal Reserve decision, reflecting the company’s resilient brand, franchised business model and dividend profile. Defensive stocks to watch
• Neutral Sentiment: CEO commentary indicates that families and other unexpected customer groups are increasingly turning to Happy Meals, prompting McDonald’s to reassess its strategy. The potential traffic opportunity is constructive, but the article does not provide quantified sales guidance. McDonald’s CEO on Happy Meals
• Neutral Sentiment: A planned U.K. interactive restaurant where customers can make their own burgers could generate publicity and test new customer experiences, but its financial impact is likely limited in the near term. New U.K. McDonald’s store
• Negative Sentiment: Coverage continues to emphasize slowing U.S. sales and execution missteps, reinforcing concerns that McDonald’s may be losing momentum versus other franchised restaurant operators. Why franchise models are winning
• Negative Sentiment: McDonald’s deleted a viral social-media post involving a controversial intern claim. Although unlikely to affect fundamentals, the incident creates avoidable reputational and communications risk. McDonald’s deletes viral post

McDonald's Company Profile

McDonald's Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald's brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald's mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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