Bank of New York Mellon Corp Has $1.60 Billion Position in McDonald's Corporation $MCD

Key Points

• Bank of New York Mellon trimmed its McDonald’s stake by 2.4% in the first quarter, but it still held 5.16 million shares valued at about $1.6 billion as of the filing.
• McDonald’s reported better-than-expected quarterly results, with EPS of $2.83 and revenue of $6.52 billion, while analysts still rate the stock a Moderate Buy with an average price target of $336.35.
• The company recently paid a $1.86 quarterly dividend ($7.44 annualized), yielding about 2.8%, and it is also rolling out new limited-time menu items that could support traffic and sales.

Bank of New York Mellon Corp cut its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 2.4% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 5,156,477 shares of the fast-food giant's stock after selling 127,178 shares during the quarter. Bank of New York Mellon Corp owned 0.73% of McDonald's worth $1,602,582,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. Peterson Wealth Services lifted its holdings in McDonald's by 3,294.5% in the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant's stock valued at $3,600,000 after buying an additional 11,432 shares during the period. Harbour Investments Inc. grew its holdings in McDonald's by 84.4% during the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock worth $10,853,000 after acquiring an additional 16,252 shares during the period. Capital International Sarl raised its position in shares of McDonald's by 10.4% in the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant's stock worth $19,639,000 after acquiring an additional 6,079 shares in the last quarter. North Dakota State Investment Board bought a new position in shares of McDonald's in the 4th quarter worth about $7,493,000. Finally, Pittenger & Anderson Inc. lifted its stake in shares of McDonald's by 21.9% in the 4th quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock valued at $6,567,000 after purchasing an additional 3,866 shares during the period. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Robert W. Baird set a $305.00 target price on McDonald's in a research report on Thursday, May 7th. KeyCorp reiterated an "overweight" rating on shares of McDonald's in a report on Wednesday. Weiss Ratings cut McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. Evercore set a $350.00 price objective on shares of McDonald's in a research report on Friday, May 8th. Finally, Sanford C. Bernstein reiterated a "market perform" rating on shares of McDonald's in a research note on Monday, June 22nd. Fifteen analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $336.35.

McDonald's Price Performance

Shares of McDonald's stock opened at $264.88 on Thursday. The business has a 50-day simple moving average of $277.44 and a 200 day simple moving average of $300.82. McDonald's Corporation has a one year low of $264.09 and a one year high of $341.75. The firm has a market capitalization of $188.20 billion, a price-to-earnings ratio of 21.84, a PEG ratio of 2.79 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the prior year, the company earned $2.67 earnings per share. The company's quarterly revenue was up 9.4% on a year-over-year basis. On average, sell-side analysts expect that McDonald's Corporation will post 12.9 EPS for the current year.

McDonald's Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were issued a dividend of $1.86 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.8%. McDonald's's dividend payout ratio is presently 61.34%.

McDonald's News Roundup

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

• Positive Sentiment: McDonald’s is rolling out several limited-time menu items, including new chicken products and a Caesar sauce, which could boost customer traffic and add to sales momentum. McDonald’s Is Releasing 4 New Menu Items for a Limited Time
• Positive Sentiment: The new Caesar sauce and related chicken sandwich/snack wrap offerings signal continued menu innovation, which investors may view as a way to defend market share in a mixed restaurant environment. McDonald's upcoming Caesar sauce brings a new sandwich and snack wrap to the summer menu
• Positive Sentiment: The BT21 Happy Meal promotion adds a collectible, marketing-driven sales event that could attract families and drive near-term visits. How Long Will the BT21 Happy Meal Be Available at McDonald’s?
• Neutral Sentiment: Some coverage focuses on the new PlayPlace design and toy promotions, which are good for brand buzz but are unlikely to materially change fundamentals on their own. People Are Talking About McDonald’s New “See-Through” PlayPlace Design
• Neutral Sentiment: Analyst and valuation-related articles suggest MCD may look attractive on a long-term basis, but they do not appear to be major catalysts by themselves. MCD at $268, Starbucks at $106: Buy, Sell or Hold?
• Negative Sentiment: Citigroup trimmed its price target on McDonald’s, which may temper enthusiasm even though it kept a buy rating. Benzinga report on Citigroup price target cut

Insider Buying and Selling at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president directly owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction dated 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 transaction, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 8,681 shares of company stock worth $2,456,440. Corporate insiders own 0.26% of the company's stock.

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.

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