Confluence Investment Management LLC Sells 4,049 Shares of McDonald's Corporation $MCD

Key Points

• Confluence Investment Management reduced its McDonald’s stake by 5.8%, selling 4,049 shares and retaining 65,853 shares valued at approximately $17.8 million.
• Institutional investors own 70.29% of McDonald’s, with major holders including Vanguard, State Street and Geode increasing their positions; insiders have also sold shares recently.
• McDonald’s beat quarterly earnings and revenue estimates, while maintaining a quarterly dividend of $1.86 per share, equivalent to a 2.8% yield. Analysts have a “Moderate Buy” consensus and an average price target of $331.92.

Confluence Investment Management LLC lowered its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 5.8% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 65,853 shares of the fast-food giant's stock after selling 4,049 shares during the period. Confluence Investment Management LLC's holdings in McDonald's were worth $17,801,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in MCD. Vanguard Group Inc. boosted its holdings in shares of McDonald's by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock worth $22,112,675,000 after buying an additional 703,458 shares in the last quarter. State Street Corp increased its stake in shares of McDonald's by 2.7% in the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant's stock valued at $10,997,789,000 after acquiring an additional 959,140 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of McDonald's by 0.4% during the 4th 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 acquiring an additional 76,090 shares during the period. Price T Rowe Associates Inc. MD lifted its position in shares of McDonald's by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant's stock valued at $2,895,768,000 after acquiring an additional 277,617 shares during the period. Finally, Norges Bank bought a new position in McDonald's during the fourth quarter worth $2,890,438,000. 70.29% of the stock is currently owned by institutional investors.

McDonald's Price Performance

Shares of NYSE MCD opened at $266.02 on Tuesday. The stock has a market capitalization of $189.01 billion, a P/E ratio of 21.93, a P/E/G ratio of 2.91 and a beta of 0.41. The company has a 50-day moving average price of $274.55 and a 200-day moving average price of $297.32. McDonald's Corporation has a 1 year low of $260.96 and a 1 year 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 the consensus estimate 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 company had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the previous year, the firm posted $2.67 earnings per share. The firm's revenue for the quarter was up 9.4% on a year-over-year basis. As a group, equities research analysts anticipate that McDonald's Corporation will post 12.86 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald's's payout ratio is currently 61.34%.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s second-quarter results could benefit from its new $3 menu, promotional initiatives and potential traffic tied to the World Cup. Investors will look for evidence that value offerings are increasing visits without materially damaging margins. McDonald’s Q2 Preview: World Cup, New $3 Menu, Higher Gas Prices – Which Theme Wins Out
• Neutral Sentiment: Options traders expect a substantial move following earnings, with some anticipating a potential new two-year low. The report and management’s outlook are likely to drive near-term volatility, particularly around U.S. comparable sales, international performance and franchisee margins. Here’s How Much McDonald’s Stock Is Expected to Move After Earnings
• Negative Sentiment: Budget-conscious consumers remain under financial pressure, raising concern that customers may trade down, reduce restaurant visits or limit discretionary purchases. This makes the performance of McDonald’s value strategy especially important in the earnings release. McDonald’s to Report Q2 Earnings as Budget-Conscious Consumers Remain Under Stress
• Negative Sentiment: Reports about lettuce-related illness and consumer safety concerns could weigh on restaurant traffic and brand sentiment, although the earnings reports will provide the clearest indication of whether such issues affected McDonald’s demand. Did Lettuce Illness Hurt Restaurants? These Reports Will Tell If Diners Feel Safe
• Negative Sentiment: Mizuho lowered its McDonald’s price target to $290, signaling reduced expectations even though the new target remains above recent trading levels. Mizuho Cuts McDonald’s Price Target to $290

Insider Buying and Selling

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred on 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 directly owned 6,268 shares of the company's stock, valued at $1,744,760.48. This 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 this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value 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. This represents a 40.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 8,348 shares of company stock valued at $2,355,634 over the last three months. Corporate insiders own 0.26% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on MCD shares. Robert W. Baird set a $305.00 price target on shares of McDonald's in a report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft set a $325.00 price objective on shares of McDonald's in a report on Thursday, July 9th. Cfra upgraded McDonald's to a "buy" rating in a research note on Friday, May 8th. Erste Group Bank downgraded McDonald's from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Finally, Tigress Financial boosted their target price on McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a research report on Friday, July 17th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $331.92.

McDonald's Company 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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