Capital World Investors Buys 23,851 Shares of McDonald's Corporation $MCD

Key Points

• Capital World Investors increased its McDonald’s stake by 1.6% in the fourth quarter, buying 23,851 additional shares and bringing its total holding to 1,550,991 shares worth about $474 million.
• McDonald’s reported better-than-expected Q1 earnings, with EPS of $2.83 versus estimates of $2.74 and revenue of $6.52 billion, up 9.4% year over year.
• The company recently declared a quarterly dividend of $1.86 per share and continues to draw mixed analyst views, though Wall Street currently rates the stock a Moderate Buy with a consensus target of $336.26.

Capital World Investors raised its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 1.6% in the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 1,550,991 shares of the fast-food giant's stock after purchasing an additional 23,851 shares during the period. Capital World Investors owned 0.22% of McDonald's worth $474,029,000 as of its most recent SEC filing.

Several other hedge funds have also bought and sold shares of MCD. Your Advocates Ltd. LLP bought a new stake in McDonald's during the fourth quarter valued at about $27,000. Park Place Capital Corp grew its holdings in McDonald's by 95.7% during the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after purchasing an additional 45 shares during the period. DecisionPoint Financial LLC grew its holdings in McDonald's by 1,616.7% during the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after purchasing an additional 97 shares during the period. Entrust Financial LLC bought a new stake in McDonald's during the fourth quarter valued at about $31,000. Finally, Painted Porch Advisors LLC grew its holdings in McDonald's by 735.7% during the third quarter. Painted Porch Advisors LLC now owns 117 shares of the fast-food giant's stock valued at $36,000 after purchasing an additional 103 shares during the period. Institutional investors own 70.29% of the company's stock.

McDonald's Stock Down 0.0%

NYSE MCD opened at $279.73 on Monday. The firm has a market cap of $198.75 billion, a price-to-earnings ratio of 23.06, a price-to-earnings-growth ratio of 2.79 and a beta of 0.41. The business has a 50-day moving average price of $291.97 and a 200-day moving average price of $307.56. McDonald's Corporation has a twelve month low of $271.85 and a twelve month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. The company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The firm's revenue for the quarter was up 9.4% on a year-over-year basis. During the same period in the previous year, the business earned $2.67 earnings per share. Research analysts expect that McDonald's Corporation will post 12.93 EPS for the current fiscal year.

McDonald's Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be given a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Tuesday, June 2nd. McDonald's's payout ratio is currently 61.34%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on MCD. Evercore set a $350.00 price target on McDonald's in a report on Friday, May 8th. Guggenheim dropped their price objective on McDonald's from $325.00 to $320.00 and set a "neutral" rating for the company in a research note on Friday, February 13th. Royal Bank Of Canada dropped their price objective 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. Rothschild & Co Redburn raised McDonald's from a "sell" rating to a "neutral" rating and upped their price objective for the stock from $260.00 to $306.00 in a research note on Thursday, April 23rd. Finally, Morgan Stanley set a $331.00 price objective on McDonald's in a research note on Friday, May 8th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $336.26.

Insider Transactions at McDonald's

In related news, insider Joseph M. Erlinger sold 333 shares of the business's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $280.11, for a total value of $93,276.63. Following the sale, the insider directly owned 7,734 shares in the company, valued at approximately $2,166,370.74. The trade was a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 8,681 shares of company stock worth $2,631,594 over the last quarter. 0.26% of the stock is owned by company insiders.

More McDonald's News

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

• Positive Sentiment: McDonald’s launched a high-profile FIFA World Cup 2026 campaign with collectible cups, toys, and themed meals, which could lift same-store sales and create a short-term traffic boost. McDonald's launches global FIFA World Cup 2026 campaign with collectible cups, Squishmallows
• Positive Sentiment: The company’s “McDonald’s > NEXT” menu and experience overhaul signals management is actively addressing consumer value concerns and trying to improve food quality, which investors may view as supportive for longer-term demand. McDonald's Is Upgrading Its Menu. Should Investors Bite?
• Positive Sentiment: Multiple reports say the World Cup promotion is designed as McDonald’s biggest global campaign in years, potentially strengthening brand relevance with younger consumers and families. McDonald’s Is Launching Its Biggest-Ever Global Campaign. The Secret Weapon Is a Paper Cup.
• Neutral Sentiment: Media coverage highlighting McDonald’s appeal to Gen Z and its collectible marketing strategy may support brand momentum, but it is not yet a direct financial catalyst. Gen Z Trends Make These 3 Stocks Worth Watching (MCD)
• Neutral Sentiment: Some articles noted that McDonald’s shares have lagged this year, which frames the new campaign as a potential turnaround effort rather than proof of immediate earnings acceleration. McDonald's Is Upgrading Its Menu. Should Investors Bite?
• Negative Sentiment: One consumer-focused report said only 40% of customers view McDonald’s as a good value, underscoring the affordability and perception challenges the company is trying to fix. Only 40% of customers think McDonald's is a good value

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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