Brown Advisory Inc. Reduces Position in McDonald's Corporation $MCD

Key Points

• Brown Advisory Inc. trimmed its McDonald’s stake by 3.3% in the fourth quarter, selling 4,674 shares and ending with 137,730 shares worth about $42.1 million.
• McDonald’s recently reported stronger-than-expected quarterly results, with EPS of $2.83 topping estimates and revenue of $6.52 billion, up 9.4% year over year. The company also announced a quarterly dividend of $1.86 per share, equal to a 2.6% yield.
• Analyst sentiment remains constructive overall, with a Moderate Buy consensus and average price target of $336.26, while McDonald’s is also testing new beverage offerings and other menu changes that could support traffic and sales.

Brown Advisory Inc. lessened its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 3.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 137,730 shares of the fast-food giant's stock after selling 4,674 shares during the quarter. Brown Advisory Inc.'s holdings in McDonald's were worth $42,094,000 at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Hamilton Point Investment Advisors LLC lifted its stake in McDonald's by 1.8% in the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant's stock worth $535,000 after acquiring an additional 31 shares during the period. Encompass More Asset Management lifted its stake in McDonald's by 1.5% in the fourth 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 during the period. Richmond Investment Services LLC lifted its stake in McDonald's by 1.4% in the fourth quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant's stock worth $696,000 after acquiring an additional 32 shares during the period. Physician Wealth Advisors Inc. lifted its stake in 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 worth $642,000 after acquiring an additional 33 shares during the period. Finally, CFO4Life Group LLC lifted its stake in McDonald's by 2.1% in the third 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 during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Insider Buying and Selling at McDonald's

In other news, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the transaction, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 owned 6,268 shares of the company's stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 11,307 shares of company stock valued at $3,262,622 over the last 90 days. Corporate insiders own 0.26% of the company's stock.

Key McDonald's News

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

• Positive Sentiment: McDonald’s is testing a broader beverage lineup, including custom sodas, refreshers, and Red Bull energy drinks, which could boost check sizes and attract younger or more beverage-focused customers. McDonald's 70-Year Coke Alliance Enters New Beverage Test
• Positive Sentiment: Wall Street’s average brokerage recommendation on McDonald’s remains a Buy, which supports the stock’s valuation even if analysts’ bullishness is sometimes seen as overly optimistic. Is It Worth Investing in McDonald's (MCD) Based on Wall Street's Bullish Views?
• Positive Sentiment: McDonald’s is also leaning into World Cup-related promotions and collectibles, which could lift traffic and sales if the tournament drives more consumer spending. Walmart and McDonald's chase $7.5B World Cup boom
• Neutral Sentiment: Additional coverage emphasized that McDonald’s beverage push may help expand its drink platform, but it also raises questions about how the new options fit with the company’s long-running Coca-Cola partnership and brand identity. McDonald's Red Bull Drinks Test Brand Perception And Valuation Gap
• Neutral Sentiment: McDonald’s is also working on menu refreshes such as changes to McCrispy Strips and reintroducing older treats, which may support customer engagement but are not yet clear stock catalysts. McDonald's to Revamp McCrispy Strips After Customer Criticism
• Negative Sentiment: Some articles highlight friction in the long-standing McDonald’s-Coke relationship and customer criticism of certain menu items, which could create execution risk if new product tests confuse the brand or disappoint consumers. The 70-Year Marriage Between McDonald’s and Coke Has Some Issues

Analyst Ratings Changes

A number of brokerages recently commented on MCD. BTIG Research reaffirmed a "buy" rating and issued a $370.00 price target on shares of McDonald's in a research note on Thursday, May 7th. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a research note on Friday. Royal Bank Of Canada dropped their price target on McDonald's from $330.00 to $305.00 and set a "sector perform" rating for the company in a research note on Friday, May 8th. KeyCorp lowered their price objective on McDonald's from $345.00 to $330.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Finally, Evercore set a $350.00 price objective on McDonald's in a research report on Friday, May 8th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, McDonald's presently has a consensus rating of "Moderate Buy" and a consensus price target of $336.26.

McDonald's Trading Up 0.5%

Shares of McDonald's stock opened at $286.35 on Tuesday. The firm has a market capitalization of $203.45 billion, a P/E ratio of 23.61, a P/E/G ratio of 2.84 and a beta of 0.41. The business has a fifty day simple moving average of $288.96 and a two-hundred day simple moving average of $306.59. McDonald's Corporation has a 12 month low of $271.85 and a 12 month 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 EPS for the quarter, beating 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 during the quarter, compared to analyst estimates of $6.47 billion. During the same quarter last year, the firm posted $2.67 earnings per share. The company's revenue for the quarter was up 9.4% on a year-over-year basis. Analysts predict 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. Stockholders of record on Tuesday, June 2nd will be issued a dividend of $1.86 per share. The ex-dividend date is Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.6%. McDonald's's dividend payout ratio (DPR) is presently 61.34%.

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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