Baypointe Partners LLC Trims Stake in McDonald's Corporation $MCD

Key Points

• Baypointe Partners cut its McDonald’s stake by 85%, selling 24,778 shares in Q4 and retaining 4,389 shares worth $1.341 million (making MCD 2.8% of its portfolio and its 12th largest holding).
• Analyst sentiment is mixed with an average rating of “Hold” and a consensus target price of $340.93 (16 Buys, 15 Holds, 1 Sell).
• Notable insider activity: company insiders sold 71,990 shares (~$23.8 million) in the past three months and now own just 0.26% of the stock, while institutional investors hold about 70.3%.

Baypointe Partners LLC lowered its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 85.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 4,389 shares of the fast-food giant's stock after selling 24,778 shares during the quarter. McDonald's comprises 2.8% of Baypointe Partners LLC's portfolio, making the stock its 12th largest position. Baypointe Partners LLC's holdings in McDonald's were worth $1,341,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Varma Mutual Pension Insurance Co increased its position in shares of McDonald's by 2.2% during the fourth quarter. Varma Mutual Pension Insurance Co now owns 118,366 shares of the fast-food giant's stock valued at $36,176,000 after buying an additional 2,500 shares during the period. Bellecapital International Ltd. increased its position in shares of McDonald's by 29.8% during the fourth quarter. Bellecapital International Ltd. now owns 5,906 shares of the fast-food giant's stock valued at $1,805,000 after buying an additional 1,356 shares during the period. Peregrine Asset Advisers Inc. grew its holdings in McDonald's by 633.8% in the fourth quarter. Peregrine Asset Advisers Inc. now owns 14,874 shares of the fast-food giant's stock worth $4,546,000 after purchasing an additional 12,847 shares during the period. KPP Advisory Services LLC grew its holdings in McDonald's by 2.4% in the fourth quarter. KPP Advisory Services LLC now owns 6,040 shares of the fast-food giant's stock worth $1,846,000 after purchasing an additional 144 shares during the period. Finally, Avidian Wealth Enterprises LLC grew its holdings in McDonald's by 3.0% in the fourth quarter. Avidian Wealth Enterprises LLC now owns 7,504 shares of the fast-food giant's stock worth $2,293,000 after purchasing an additional 221 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Wall Street Analyst Weigh In

MCD has been the topic of a number of recent research reports. 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 report on Friday, February 13th. Guggenheim cut their price objective on shares of McDonald's from $325.00 to $320.00 and set a "neutral" rating on the stock in a report on Friday, February 13th. KeyCorp cut their price objective on shares of McDonald's from $354.00 to $345.00 and set an "overweight" rating on the stock in a report on Monday, April 20th. Piper Sandler upped their price objective on shares of McDonald's from $323.00 to $325.00 and gave the stock a "neutral" rating in a report on Thursday, February 12th. Finally, Erste Group Bank cut shares of McDonald's from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Sixteen equities research 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, the company currently has an average rating of "Hold" and a consensus target price of $340.93.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s rolled out an all‑purple “Grimace” menu and relaunched the viral Grimace milkshake — a pop‑culture promotion expected to drive short‑term foot traffic and social‑media buzz, which can lift same‑store sales and AUVs. McDonald’s unveils purple Grimace menu featuring viral milkshake comeback
• Positive Sentiment: McDonald’s is pushing a new lineup of six hand‑crafted drinks (boba, “dirty” sodas and themed accessories). Management’s beverage push targets a high‑margin category and supports the broader thesis that drinks can be a multi‑billion growth engine for the chain. McDonald’s drops 6 new drinks with unusual accessories
• Neutral Sentiment: Local expansion news — a new McDonald’s site planned in Rockford — signals steady franchise development but is unlikely to move the stock materially on its own. New McDonald’s to be built on W. Riverside in Rockford
• Negative Sentiment: A widely circulated idea of a $20 “unlimited fries” subscription was fact‑checked and found to be inaccurate — removing a potential recurring‑revenue catalyst investors may have hoped for. Fact check: Is McDonald’s launching $20 subscription with unlimited fries?
• Negative Sentiment: The Street reports McDonald’s is adjusting menu “protein hacks” as beef prices rise — higher commodity costs pose a margin risk even as the company seeks menu workarounds. McDonald’s reveals protein hacks as beef prices rise
• Negative Sentiment: Erste Group trimmed its FY2027 EPS estimate and downgraded MCD to a “Hold,” a mild analyst headwind that can weigh on sentiment. McDonald's NYSE: MCD Cut to "Hold" at Erste Group Bank

Insider Activity at McDonald's

In related 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 transaction, the chief marketing officer owned 6,200 shares in the company, valued at $2,052,200. This represents a 43.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Joseph M. Erlinger sold 2,626 shares of the stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $325.25, for a total transaction of $854,106.50. Following the transaction, the insider owned 5,398 shares in the company, valued at approximately $1,755,699.50. This trade represents a 32.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 71,990 shares of company stock worth $23,824,113 in the last three months. 0.26% of the stock is currently owned by company insiders.

McDonald's Stock Performance

Shares of NYSE MCD opened at $286.83 on Monday. The firm's 50 day moving average price is $314.29 and its 200-day moving average price is $311.86. The company has a market cap of $203.89 billion, a PE ratio of 24.00, a P/E/G ratio of 2.65 and a beta of 0.43. McDonald's Corporation has a 52-week low of $283.47 and a 52-week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.05 by $0.07. The firm had revenue of $7.01 billion for the quarter, compared to the consensus estimate of $6.81 billion. McDonald's had a net margin of 31.85% and a negative return on equity of 343.90%. The business's revenue was up 9.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.83 earnings per share. On average, analysts forecast that McDonald's Corporation will post 13.2 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were given 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 2.6%. McDonald's's dividend payout ratio is 62.26%.

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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