Capitolis Liquid Global Markets LLC Trims Stake in McDonald's Corporation $MCD

Key Points

• Capitolis Liquid Global Markets LLC cut its McDonald’s stake by 21.3% in the fourth quarter, selling 62,918 shares and leaving it with 232,582 shares valued at about $71.1 million.
• Several other institutional investors increased their holdings, and 70.29% of McDonald’s stock is now owned by hedge funds and other institutions, highlighting continued strong professional ownership.
• McDonald’s continues to draw mixed Wall Street and market attention: analysts maintain a Moderate Buy consensus with a $336.26 price target, while recent headlines point to both positive catalysts like a fried apple pie comeback and concerns about softer consumer spending.

Capitolis Liquid Global Markets LLC reduced its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 21.3% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 232,582 shares of the fast-food giant's stock after selling 62,918 shares during the period. Capitolis Liquid Global Markets LLC's holdings in McDonald's were worth $71,084,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Peterson Wealth Services lifted its holdings in shares of McDonald's by 3,294.5% during the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant's stock worth $3,600,000 after acquiring an additional 11,432 shares during the last quarter. Harbour Investments Inc. lifted its holdings in shares of McDonald's by 84.4% during the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock worth $10,853,000 after acquiring an additional 16,252 shares during the last quarter. Capital International Sarl lifted its holdings in shares of McDonald's by 10.4% during the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant's stock worth $19,639,000 after acquiring an additional 6,079 shares during the last quarter. North Dakota State Investment Board bought a new stake in shares of McDonald's during the 4th quarter worth $7,493,000. Finally, Pittenger & Anderson Inc. lifted its stake in McDonald's by 21.9% in the fourth quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock worth $6,567,000 after purchasing an additional 3,866 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is bringing back its fried apple pie after more than 30 years, a nostalgic, limited-time menu move that could support traffic and generate buzz with customers. AP News article
• Positive Sentiment: Other reports also note McDonald’s has been winning with value-oriented diners, which may help it hold up better than midtier restaurant chains as consumers trade down or seek familiar brands. Yahoo Finance article
• Neutral Sentiment: Coverage of McDonald’s reviving classic menu items, updating drive-thrus, and rebuilding older locations is mostly brand/operations news, with limited immediate impact on the stock. TheStreet article
• Neutral Sentiment: A Zacks note pointed out that MCD recently fell more than the broader market, but it did not identify a major new catalyst beyond the stock’s recent weakness. Zacks article
• Negative Sentiment: The biggest headwind is the market’s concern that restaurant spending is fragmenting, which could pressure midtier operators and keep sentiment cautious around consumer discretionary names like McDonald’s. Yahoo Finance article

Insider Transactions at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business'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 in the company, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the business's stock in a transaction dated Wednesday, June 10th. The shares were 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 owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 11,307 shares of company stock worth $3,262,622 in the last 90 days. Corporate insiders own 0.26% of the company's stock.

Wall Street Analyst Weigh In

MCD has been the subject of several recent research reports. TD Cowen reissued a "hold" rating on shares of McDonald's in a research note on Friday, June 12th. Robert W. Baird set a $305.00 price target on shares of McDonald's in a research note on Thursday, May 7th. Cfra raised shares of McDonald's to a "buy" rating in a research note on Friday, May 8th. Wells Fargo & Company lowered their price target on shares of McDonald's from $355.00 to $320.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Finally, Royal Bank Of Canada lowered their price target on shares of 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. Sixteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, McDonald's has a consensus rating of "Moderate Buy" and a consensus price target of $336.26.

McDonald's Stock Down 1.3%

McDonald's stock opened at $284.16 on Thursday. The firm has a fifty day simple moving average of $288.07 and a two-hundred day simple moving average of $306.22. McDonald's Corporation has a twelve month low of $271.85 and a twelve month high of $341.75. The company has a market capitalization of $201.90 billion, a PE ratio of 23.43, a P/E/G ratio of 2.87 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released 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 net margin of 31.62% and a negative return on equity of 442.10%. The firm had revenue of $6.52 billion for the quarter, compared to analysts' expectations of $6.47 billion. During the same quarter in the previous year, the company earned $2.67 earnings per share. The company's revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities analysts expect that McDonald's Corporation will post 12.93 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were given a $1.86 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.6%. McDonald's's payout ratio is presently 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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