Bank of New York Mellon Corp Purchases 40,506 Shares of McDonald's Corporation $MCD

Key Points

• Bank of New York Mellon increased its McDonald’s stake by 0.8% in the fourth quarter, buying 40,506 shares and bringing its total holding to 5.28 million shares worth about $1.61 billion.
• Wall Street sentiment is mixed: McDonald’s has a consensus rating of “Hold” with an average price target of $334.45, even though several analysts recently adjusted their targets and ratings.
• McDonald’s reported solid results and a dividend, posting Q1 EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion, while also declaring a quarterly dividend of $1.86 per share, or $7.44 annually.

Bank of New York Mellon Corp lifted its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 0.8% in the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor owned 5,283,655 shares of the fast-food giant's stock after buying an additional 40,506 shares during the quarter. Bank of New York Mellon Corp owned about 0.74% of McDonald's worth $1,614,843,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Encompass More Asset Management increased its holdings in shares of McDonald's by 1.5% during the fourth quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant's stock worth $648,000 after purchasing an additional 32 shares during the period. Physician Wealth Advisors Inc. boosted its stake in shares of McDonald's by 1.6% in the fourth quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock valued at $642,000 after buying an additional 33 shares during the period. CFO4Life Group LLC grew its position in McDonald's by 2.1% during the third quarter. CFO4Life Group LLC now owns 1,669 shares of the fast-food giant's stock worth $507,000 after buying an additional 34 shares in the last quarter. American National Bank of Texas grew its position in McDonald's by 2.9% during the fourth quarter. American National Bank of Texas now owns 1,191 shares of the fast-food giant's stock worth $364,000 after buying an additional 34 shares in the last quarter. Finally, Allied Investment Advisors LLC increased its stake in McDonald's by 2.6% during the 4th quarter. Allied Investment Advisors LLC now owns 1,366 shares of the fast-food giant's stock worth $417,000 after acquiring an additional 34 shares during the period. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. Evercore set a $350.00 target price on McDonald's in a research report on Friday, May 8th. Wells Fargo & Company decreased their price target on McDonald's from $355.00 to $320.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. Mizuho boosted their price target on McDonald's from $300.00 to $325.00 and gave the company a "neutral" rating in a research note on Friday, February 6th. Argus upgraded shares of McDonald's from a "hold" rating to a "buy" rating and set a $380.00 price objective on the stock in a research note on Friday, February 13th. Finally, Rothschild & Co Redburn upgraded shares of McDonald's from a "sell" rating to a "neutral" rating and boosted their target price for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Sixteen analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, McDonald's presently has a consensus rating of "Hold" and an average price target of $334.45.

Insider Buying and Selling at McDonald's

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were 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 in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Joseph M. Erlinger sold 333 shares of the stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $280.11, for a total transaction of $93,276.63. Following the transaction, the insider directly owned 7,734 shares in the company, valued at $2,166,370.74. This trade represents a 4.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 8,681 shares of company stock valued at $2,631,594. Insiders own 0.26% of the company's stock.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s unveiled its new “McDonald’s NEXT” strategy, centered on automation, improved restaurant design, better-tasting food, stronger hospitality, and more effective social media marketing. Investors may view this as a clear roadmap to reignite traffic and long-term sales growth. Article Title
• Positive Sentiment: Multiple articles highlighted that McDonald’s is leaning on value meals, chicken innovation, and restaurant upgrades to gain market share in a cautious consumer environment, which could help sustain demand even if spending stays weak. Article Title
• Positive Sentiment: Jim Cramer also named McDonald’s as a defensive stock to own outside the AI trade, suggesting it could benefit if investors rotate into steadier, out-of-favor sectors. Article Title
• Neutral Sentiment: McDonald’s strategy update also emphasizes making stores easier to run and improving efficiency, which could support margins over time but likely won’t show immediate results. Article Title
• Neutral Sentiment: An EVP recently sold shares, which can add some caution, but the transaction appears routine and is not by itself a strong fundamental warning. Article Title

McDonald's Stock Performance

NYSE:MCD opened at $276.61 on Wednesday. The firm has a market cap of $196.53 billion, a P/E ratio of 22.80, a P/E/G ratio of 2.75 and a beta of 0.41. The firm's fifty day moving average is $294.66 and its 200-day moving average is $308.42. McDonald's Corporation has a 52 week low of $271.98 and a 52 week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the previous year, the business earned $2.67 EPS. The firm's revenue was up 9.4% compared to the same quarter last year. As a group, sell-side 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 declared a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd will be issued a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date is Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is presently 61.34%.

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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