Capstone Capital Management Ltd Invests $1.13 Million in McDonald's Corporation $MCD

Key Points

• Capstone Capital Management opened a new position in McDonald’s during the fourth quarter, buying 3,700 shares worth about $1.13 million. The stake represents 1.1% of Capstone’s holdings and ranks as its 17th largest position.
• Institutional ownership remains very high, with hedge funds and other investors holding 70.29% of McDonald’s stock. Several large firms, including Vanguard, State Street, and Franklin Resources, also increased their positions recently.
• Analysts are broadly constructive on McDonald’s, with a consensus rating of “Moderate Buy” and an average price target of $334.45. The company also beat quarterly EPS and revenue expectations in its latest earnings report.

Capstone Capital Management Ltd bought a new position in McDonald's Corporation (NYSE:MCD - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 3,700 shares of the fast-food giant's stock, valued at approximately $1,131,000. McDonald's comprises 1.1% of Capstone Capital Management Ltd's holdings, making the stock its 17th biggest holding.

A number of other hedge funds also recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in McDonald's by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock worth $22,112,675,000 after purchasing an additional 703,458 shares in the last quarter. State Street Corp boosted its position in McDonald's by 0.6% during the third quarter. State Street Corp now owns 35,024,857 shares of the fast-food giant's stock worth $10,643,704,000 after purchasing an additional 196,505 shares in the last quarter. Legal & General Group Plc boosted its position in McDonald's by 6.4% during the third quarter. Legal & General Group Plc now owns 4,757,967 shares of the fast-food giant's stock worth $1,445,899,000 after purchasing an additional 286,284 shares in the last quarter. Ameriprise Financial Inc. boosted its position in McDonald's by 0.5% during the third quarter. Ameriprise Financial Inc. now owns 4,422,014 shares of the fast-food giant's stock worth $1,343,501,000 after purchasing an additional 21,168 shares in the last quarter. Finally, Franklin Resources Inc. boosted its position in McDonald's by 36.6% during the third quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant's stock worth $1,336,155,000 after purchasing an additional 1,179,244 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Robert W. Baird set a $305.00 target price on McDonald's in a research report on Thursday, May 7th. Piper Sandler increased their price target on McDonald's from $323.00 to $325.00 and gave the company a "neutral" rating in a report on Thursday, February 12th. Wells Fargo & Company cut their target price on McDonald's from $355.00 to $320.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Jefferies Financial Group raised their target price on McDonald's from $360.00 to $375.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Finally, TD Cowen lowered their price target on McDonald's from $330.00 to $300.00 and set a "hold" rating for the company in a research report on Thursday, May 7th. Seventeen research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $334.45.

Insider Transactions at McDonald's

In other McDonald's news, EVP Jonathan Banner sold 6,201 shares of McDonald's stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the completion of the sale, the executive vice president directly owned 2,291 shares of the company's stock, valued at $763,567.39. The trade was a 73.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Joseph M. Erlinger sold 333 shares of McDonald's stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $302.72, for a total value of $100,805.76. Following the sale, the insider directly owned 8,067 shares of the company's stock, valued at $2,442,042.24. This trade represents a 3.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 12,119 shares of company stock valued at $3,945,973 over the last ninety days. 0.26% of the stock is owned by company insiders.

Key McDonald's News

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

• Positive Sentiment: UBS said McDonald’s is well positioned for global market-share gains, reinforcing the view that the company’s scale, brand power, and international footprint can help it outperform rivals. McDonald's Seen Well-Positioned for Global Market-Share Gains, UBS Says
• Positive Sentiment: McDonald’s continues to highlight value and menu innovation, including Extra Value Meals and a new under-$3 menu, which analysts viewed as helping the chain regain share among budget-conscious customers. 5 Insightful Analyst Questions From McDonald's’s Q1 Earnings Call
• Positive Sentiment: McDonald’s brand-building efforts, including a Nike co-branded sneaker launch and localized menu marketing such as the Spam McMuffin in Hawaii, underscore the company’s cultural relevance and ability to drive engagement. McDonald's Tests Brand Power With Nike Tie In And Spam McMuffin
• Neutral Sentiment: Jefferies updated its list of highest-conviction buy-rated stocks, which may include McDonald’s, but the article does not provide enough detail here to assess a direct stock impact. Jefferies updates its list of highest-conviction Buy-rated stocks
• Negative Sentiment: Erste Group Bank lowered its FY2026 EPS forecast for McDonald’s, suggesting analysts see some pressure on earnings expectations. McDonald's FY2026 EPS Forecast Lowered by Erste Group Bank
• Negative Sentiment: Some recent commentary also highlighted softer consumer spending and reduced dining-out frequency, which can weigh on traffic and same-store sales for McDonald’s. Is McDonald's an Undervalued Dividend Stock to Buy?

McDonald's Price Performance

Shares of NYSE MCD opened at $282.34 on Tuesday. The company has a market capitalization of $200.61 billion, a price-to-earnings ratio of 23.28, a price-to-earnings-growth ratio of 2.75 and a beta of 0.43. The business has a 50-day moving average of $303.40 and a two-hundred day moving average of $309.85. McDonald's Corporation has a 1 year low of $271.98 and a 1 year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. The company had revenue of $6.52 billion during 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%.McDonald's'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 EPS. As a group, equities research analysts expect that McDonald's Corporation will post 12.94 earnings per share for the current year.

About McDonald's

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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