CenterBook Partners LP Sells 14,019 Shares of McDonald's Corporation $MCD

Key Points

• CenterBook Partners cut its McDonald’s stake by 63.7% in the third quarter, selling 14,019 shares and ending the period with 7,977 shares valued at about $1.84 million.
• McDonald’s quarterly earnings per share of $3.57 beat estimates of $3.38, while revenue of $7.16 billion fell short of expectations; revenue rose 1.1% year over year.
• The company raised its quarterly dividend to $1.93 per share from $1.86, equivalent to an annualized $7.72 and a 2.8% yield.

CenterBook Partners LP lessened its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 63.7% during the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 7,977 shares of the fast-food giant's stock after selling 14,019 shares during the period. CenterBook Partners LP's holdings in McDonald's were worth $1,842,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of the stock. Bank of New York Mellon Corp acquired a new position in shares of McDonald's during the second quarter valued at about $1,359,276,000. Bessemer Group Inc. boosted its position in shares of McDonald's by 132.1% during the 1st quarter. Bessemer Group Inc. now owns 1,325,880 shares of the fast-food giant's stock worth $412,071,000 after purchasing an additional 754,596 shares in the last quarter. State Street Corp boosted its position in shares of McDonald's by 1.8% during the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant's stock worth $9,752,921,000 after purchasing an additional 646,675 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of McDonald's by 17.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant's stock valued at $1,130,587,000 after buying an additional 533,448 shares during the period. Finally, Ascentis Wealth Management LLC grew its stake in shares of McDonald's by 23,222.1% in the 2nd quarter. Ascentis Wealth Management LLC now owns 478,103 shares of the fast-food giant's stock valued at $129,236,000 after buying an additional 476,053 shares during the period. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Stock Down 0.1%

Shares of McDonald's stock opened at $276.36 on Monday. The company has a market cap of $195.56 billion, a PE ratio of 21.86, a price-to-earnings-growth ratio of 3.20 and a beta of 0.42. McDonald's Corporation has a 52 week low of $229.20 and a 52 week high of $341.75. The business has a 50 day moving average price of $248.76 and a 200-day moving average price of $282.57.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share for the quarter, beating analysts' consensus estimates of $3.38 by $0.19. The company had revenue of $7.16 billion for the quarter, compared to analyst estimates of $7.28 billion. McDonald's had a negative return on equity of 671.56% and a net margin of 32.38%. The company's revenue for the quarter was up 1.1% on a year-over-year basis. During the same quarter last year, the company earned $3.22 earnings per share. As a group, research analysts anticipate that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be paid a dividend of $1.93 per share. This is a boost from McDonald's's previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 annualized dividend and a yield of 2.8%. McDonald's's dividend payout ratio (DPR) is 61.08%.

Analyst Upgrades and Downgrades

MCD has been the subject of a number of research analyst reports. Robert W. Baird decreased their target price on McDonald's from $285.00 to $250.00 and set a "neutral" rating for the company in a research report on Thursday, September 24th. HC Wainwright set a $250.00 price target on McDonald's in a report on Friday, September 25th. Weiss Ratings cut McDonald's from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, October 2nd. Argus upped their target price on McDonald's from $310.00 to $320.00 and gave the stock a "buy" rating in a research report on Friday. Finally, Seaport Research Partners started coverage on McDonald's in a research report on Wednesday, September 16th. They set a "neutral" rating on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $297.82.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: Argus raised its price target to $320 from $310 and reiterated a “buy” rating, signaling confidence in the stock’s prospects. Argus rating
• Neutral Sentiment: McDonald’s is testing value bundles at nearly 2,000 U.S. restaurants, ahead of a planned national value platform in early 2027. The deals may help bring back customers, but the company is still assessing their effect on traffic and orders. McDonald’s value-bundle test
• Neutral Sentiment: Third-quarter profit beat analyst estimates, but revenue missed and U.S. comparable sales declined. That mixed backdrop helps explain why investors are watching for evidence that value promotions can sustain a domestic recovery. Q3 earnings and U.S. traffic
• Negative Sentiment: Consumers have filed a lawsuit alleging McDonald’s labeled McCafé drinks “sugar free” despite some containing as much as 18 grams of sugar. The allegations are unproven, but the case could create legal and reputational risk. McCafé labeling lawsuit
• Negative Sentiment: Freedom Broker cut its rating from “buy” to “hold” and lowered its price target to $298 from $305, adding a more cautious view alongside the recent analyst optimism. Freedom Broker rating change

About McDonald's

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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