Canandaigua National Bank & Trust Co. Makes New $9.10 Million Investment in McDonald's Corporation $MCD

Key Points

• Canandaigua National Bank & Trust acquired 33,672 McDonald’s shares worth approximately $9.1 million, making the stock its 27th-largest holding. Institutional investors and hedge funds collectively own 70.29% of MCD.
• McDonald’s reported second-quarter adjusted EPS of $3.38, topping the $3.32 consensus estimate, while revenue rose 3.7% year over year to $7.10 billion but fell slightly short of expectations. Global comparable sales increased about 4%, supported by international markets and stronger franchised margins.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $330.36, while McDonald’s announced a quarterly dividend of $1.86 per share, representing a 2.8% yield.

Canandaigua National Bank & Trust Co. acquired a new stake in McDonald's Corporation (NYSE:MCD - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 33,672 shares of the fast-food giant's stock, valued at approximately $9,102,000. McDonald's comprises approximately 0.8% of Canandaigua National Bank & Trust Co.'s holdings, making the stock its 27th largest position.

Several other large investors also recently modified their holdings of the business. Brighton Jones LLC grew its position in shares of McDonald's by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock worth $2,692,000 after buying an additional 1,649 shares in the last quarter. Revolve Wealth Partners LLC raised its holdings in McDonald's by 2.8% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock valued at $563,000 after acquiring an additional 52 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in McDonald's by 11.4% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant's stock valued at $589,000 after acquiring an additional 206 shares during the last quarter. United Bank boosted its stake in McDonald's by 6.0% during the 2nd quarter. United Bank now owns 8,102 shares of the fast-food giant's stock valued at $2,367,000 after acquiring an additional 459 shares during the last quarter. Finally, Schnieders Capital Management LLC. grew its holdings in McDonald's by 2.5% during the 2nd quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant's stock worth $3,780,000 after acquiring an additional 312 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on MCD. Sanford C. Bernstein reissued a "market perform" rating on shares of McDonald's in a research report on Monday, June 22nd. KeyCorp reaffirmed an "overweight" rating on shares of McDonald's in a research report on Wednesday. Citigroup decreased their price target on McDonald's from $375.00 to $335.00 and set a "buy" rating for the company in a research note on Wednesday, July 15th. Rothschild & Co Redburn raised McDonald's from a "sell" rating to a "neutral" rating and boosted their price objective for the company from $260.00 to $306.00 in a report on Thursday, April 23rd. Finally, Piper Sandler set a $286.00 price objective on McDonald's in a research note on Tuesday. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $330.36.

Key McDonald's News

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

• Positive Sentiment: McDonald’s reported second-quarter adjusted earnings of $3.38 per share, above the $3.32 analyst consensus and up from $3.19 a year earlier. Stronger franchised margins and comparable-sales growth across its operating segments helped offset the revenue shortfall. McDonald’s Q2 Earnings Surpass Estimates
• Positive Sentiment: Global comparable sales increased roughly 4%, supported by international markets and record restaurant margins. The results suggest McDonald’s continues to generate resilient profitability outside the United States. McDonald’s Q2 Earnings Call Highlights
• Positive Sentiment: The company appointed longtime executive Skye Anderson as president of McDonald’s USA, replacing Joe Erlinger. Anderson will oversee nearly 14,000 U.S. restaurants and is expected to improve service, simplify value offerings and restore traffic in the company’s largest market. McDonald’s Names Skye Anderson as U.S. President

McDonald's Price Performance

MCD stock opened at $268.35 on Wednesday. The firm has a market cap of $190.66 billion, a price-to-earnings ratio of 22.12, a PEG ratio of 2.85 and a beta of 0.41. McDonald's Corporation has a 1-year low of $260.96 and a 1-year high of $341.75. The firm has a fifty day moving average price of $274.32 and a two-hundred day moving average price of $297.05.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The company had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same period last year, the firm posted $3.19 EPS. The company's revenue for the quarter was up 3.7% on a year-over-year basis. As a group, analysts expect that McDonald's Corporation will post 12.85 EPS for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.8%. McDonald's's dividend payout ratio is 61.34%.

Insider Transactions at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction dated 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. This trade represents a 30.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 8,348 shares of company stock worth $2,355,634 in the last three months. 0.26% of the stock is currently owned by corporate insiders.

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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