Bridges Investment Management Inc. Reduces Stock Position in McDonald's Corporation $MCD

Key Points

• Bridges Investment Management cut its McDonald’s stake by 5.4% in the fourth quarter, selling 5,068 shares and ending with 88,700 shares worth about $27.1 million.
• Analysts remain mixed on the stock: McDonald’s has an overall Hold rating, with an average target price of $334.45, even as some firms raised or lowered their price targets.
• McDonald’s recently reported better-than-expected quarterly results, with EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion, and it also announced a quarterly dividend of $1.86 per share.

Bridges Investment Management Inc. reduced its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 5.4% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 88,700 shares of the fast-food giant's stock after selling 5,068 shares during the quarter. Bridges Investment Management Inc.'s holdings in McDonald's were worth $27,109,000 at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. Encompass More Asset Management increased its holdings in McDonald's by 1.5% in the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant's stock worth $648,000 after acquiring an additional 32 shares in the last quarter. Physician Wealth Advisors Inc. increased its holdings in McDonald's by 1.6% in the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock worth $642,000 after acquiring an additional 33 shares in the last quarter. CFO4Life Group LLC increased its holdings in McDonald's by 2.1% in the 3rd quarter. CFO4Life Group LLC now owns 1,669 shares of the fast-food giant's stock worth $507,000 after acquiring an additional 34 shares in the last quarter. Parvin Asset Management LLC increased its holdings in McDonald's by 3.8% in the 3rd quarter. Parvin Asset Management LLC now owns 929 shares of the fast-food giant's stock worth $282,000 after acquiring an additional 34 shares in the last quarter. Finally, American National Bank of Texas increased its holdings in McDonald's by 2.9% in the 4th quarter. American National Bank of Texas now owns 1,191 shares of the fast-food giant's stock worth $364,000 after acquiring an additional 34 shares in the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

MCD has been the subject of several analyst reports. BTIG Research reissued a "buy" rating and issued a $370.00 target price on shares of McDonald's in a report on Thursday, May 7th. JPMorgan Chase & Co. lowered their price target on McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a report on Monday, May 11th. TD Cowen lowered their price target on McDonald's from $330.00 to $300.00 and set a "hold" rating on the stock in a report on Thursday, May 7th. Evercore set a $350.00 price target on McDonald's in a report on Friday, May 8th. Finally, Citigroup boosted their price target on McDonald's from $371.00 to $375.00 and gave the stock a "buy" rating in a report on Thursday, February 12th. Sixteen analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $334.45.

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

Insider Activity at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Joseph M. Erlinger sold 2,626 shares of the business's stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $307.00, for a total value of $806,182.00. Following the transaction, the insider owned 8,400 shares of the company's stock, valued at $2,578,800. This trade represents a 23.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,681 shares of company stock valued at $2,631,594 in the last 90 days. Company insiders own 0.26% of the company's stock.

McDonald's Price Performance

Shares of MCD stock opened at $276.61 on Wednesday. McDonald's Corporation has a 1 year low of $271.98 and a 1 year high of $341.75. The stock's 50 day simple moving average is $294.66 and its two-hundred day simple moving average is $308.42. The company has a market cap of $196.53 billion, a PE ratio of 22.80, a price-to-earnings-growth ratio of 2.75 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last issued 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 business had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the prior year, the business posted $2.67 earnings per share. The company's quarterly revenue was up 9.4% compared to the same quarter last year. Equities research analysts expect that McDonald's Corporation will post 12.93 EPS for the current year.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd will be given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Tuesday, June 2nd. McDonald's's payout ratio is 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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