CIBC Asset Management Inc Boosts Stock Holdings in McDonald's Corporation $MCD

Key Points

• CIBC Asset Management increased its McDonald’s stake by 26.6% in the fourth quarter, buying 67,732 additional shares and bringing its total holdings to 322,585 shares valued at about $98.5 million.
• McDonald’s is drawing support from institutional investors overall, with firms like Vanguard, State Street, and Geode also adding shares; roughly 70.29% of the stock is now owned by hedge funds and other institutions.
• The company reported solid quarterly results, beating EPS and revenue estimates, and it recently announced a $1.86 quarterly dividend to be paid June 16, implying an annualized yield of 2.7%.

CIBC Asset Management Inc raised its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 26.6% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 322,585 shares of the fast-food giant's stock after purchasing an additional 67,732 shares during the quarter. CIBC Asset Management Inc's holdings in McDonald's were worth $98,534,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings 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 valued at $22,112,675,000 after purchasing an additional 703,458 shares during the last quarter. State Street Corp lifted its holdings 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 valued at $10,643,704,000 after purchasing an additional 196,505 shares during the last quarter. Geode Capital Management LLC lifted its holdings in McDonald's by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock valued at $5,195,965,000 after purchasing an additional 76,090 shares during the last quarter. Norges Bank purchased a new stake in McDonald's during the fourth quarter valued at about $2,890,438,000. Finally, Bank of New York Mellon Corp lifted its holdings in McDonald's by 0.8% during the fourth quarter. Bank of New York Mellon Corp now owns 5,283,655 shares of the fast-food giant's stock valued at $1,614,843,000 after purchasing an additional 40,506 shares during the last quarter. 70.29% of the stock is 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 unveiled its new “McDonald’s NEXT” strategy, centered on automation, improved restaurant design, better-tasting food, stronger hospitality, and more effective social media marketing. Investors may view this as a clear roadmap to reignite traffic and long-term sales growth. Article Title
• Positive Sentiment: Multiple articles highlighted that McDonald’s is leaning on value meals, chicken innovation, and restaurant upgrades to gain market share in a cautious consumer environment, which could help sustain demand even if spending stays weak. Article Title
• Positive Sentiment: Jim Cramer also named McDonald’s as a defensive stock to own outside the AI trade, suggesting it could benefit if investors rotate into steadier, out-of-favor sectors. Article Title
• Neutral Sentiment: McDonald’s strategy update also emphasizes making stores easier to run and improving efficiency, which could support margins over time but likely won’t show immediate results. Article Title
• Neutral Sentiment: An EVP recently sold shares, which can add some caution, but the transaction appears routine and is not by itself a strong fundamental warning. Article Title

Analysts Set New Price Targets

Several equities research analysts have issued reports on MCD shares. Barclays dropped their target price on McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. Guggenheim dropped their target price on McDonald's from $325.00 to $320.00 and set a "neutral" rating on the stock in a research report on Friday, February 13th. Citigroup increased their target price on McDonald's from $371.00 to $375.00 and gave the stock a "buy" rating in a research report on Thursday, February 12th. Rothschild & Co Redburn upgraded McDonald's from a "sell" rating to a "neutral" rating and increased their target price for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Finally, Truist Financial increased their target price on McDonald's from $356.00 to $370.00 and gave the stock a "buy" rating in a research report on Thursday, February 12th. Sixteen equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $334.45.

McDonald's Stock Performance

Shares of MCD stock opened at $276.61 on Wednesday. McDonald's Corporation has a 52-week low of $271.98 and a 52-week high of $341.75. The company has a market capitalization of $196.53 billion, a PE ratio of 22.80, a price-to-earnings-growth ratio of 2.75 and a beta of 0.41. The business's fifty day moving average is $294.66 and its 200 day moving average is $308.42.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data 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. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same quarter last year, the business posted $2.67 earnings per share. The firm's revenue was up 9.4% compared to the same quarter last year. On average, sell-side analysts forecast that McDonald's Corporation will post 12.93 EPS for the current fiscal year.

McDonald's Announces Dividend

The firm also recently disclosed 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 dividend payout ratio (DPR) is 61.34%.

Insider Buying and Selling

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly 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 document filed with the SEC, which is available through the SEC website. Also, insider Joseph M. Erlinger sold 333 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $280.11, for a total transaction of $93,276.63. Following the completion of the sale, the insider directly owned 7,734 shares in the company, valued at $2,166,370.74. This represents a 4.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 8,681 shares of company stock worth $2,631,594 over the last ninety days. 0.26% of the stock is currently owned by 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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