Convergence Investment Partners LLC Increases Stock Position in McDonald's Corporation $MCD

Key Points

• Convergence Investment Partners boosted its McDonald’s stake by 658% in the first quarter, ending with 6,269 shares valued at about $1.95 million.
• McDonald’s insiders have been selling shares recently, including Joseph M. Erlinger and Desiree Ralls-Morrison, with $2.46 million in insider stock sales over the last three months.
• Wall Street sentiment remains generally positive: analysts rate MCD a Moderate Buy on average, and the company recently beat quarterly earnings and revenue expectations while paying a $1.86 quarterly dividend.

Convergence Investment Partners LLC grew its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 658.0% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 6,269 shares of the fast-food giant's stock after acquiring an additional 5,442 shares during the period. Convergence Investment Partners LLC's holdings in McDonald's were worth $1,948,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in MCD. Your Advocates Ltd. LLP bought a new stake in McDonald's during the 4th quarter valued at $27,000. Park Place Capital Corp lifted its position in McDonald's by 95.7% in the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock worth $28,000 after purchasing an additional 45 shares during the period. IFC & Insurance Marketing Inc. bought a new position in McDonald's during the 4th quarter valued at $29,000. Abound Financial LLC bought a new position in McDonald's during the 4th quarter valued at $30,000. Finally, DecisionPoint Financial LLC boosted its stake in McDonald's by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after purchasing an additional 97 shares in the last quarter. Institutional investors own 70.29% of the company's stock.

Insider Activity at McDonald's

In other news, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction on 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 transaction, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 8,681 shares of company stock valued at $2,456,440 over the last three months. Insiders own 0.26% of the company's stock.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: One Seeking Alpha article argues that McDonald's recent sell-off is creating an opportunity for investors, signaling that the stock may be undervalued after its decline. McDonald's Sell-Off Is Your Opportunity
• Positive Sentiment: Another article upgraded McDonald's to Buy, saying its consistency deserves a higher valuation and pointing to accelerating top- and bottom-line growth as signs of a potential turnaround. McDonald's: Consistency Deserves A Better Multiple (Rating Upgrade)
• Positive Sentiment: A separate bullish note said the stock is attractive after compression in earnings multiples and highlighted recent catalysts that could improve the business outlook. McDonald's: Consistency Deserves A Better Multiple (Rating Upgrade)
• Positive Sentiment: Coverage from Zacks focused on generally optimistic Wall Street analyst sentiment, which can support shares when investors expect favorable estimates or ratings. Is McDonald's (MCD) a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: Several lifestyle and menu-focused stories highlighted product novelty, including a new Caesar sauce and a drink item resembling a Starbucks-style pink drink, but these appear more brand-interest driven than material near-term catalysts. Review: McDonald's Caesar sauce is the tangy menu addition we didn't know we needed
• Negative Sentiment: Some recent commentary remains cautious, with one piece saying McDonald's stock “still not good enough,” reinforcing that not all investors are convinced the valuation or growth outlook has improved enough. McDonald's: Still Not Good Enough
• Negative Sentiment: An article on MCD’s 2026 weakness noted the stock is down sharply this year and said investors are bracing for softer same-store sales ahead of the next earnings report, which can weigh on sentiment. McDonald’s (MCD) Stock Struggles Continue: What’s Behind the 2026 Decline?

Wall Street Analysts Forecast Growth

MCD has been the topic of a number of research analyst reports. BTIG Research reiterated a "buy" rating and set a $370.00 price target on shares of McDonald's in a report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft set a $325.00 price objective on McDonald's in a research note on Thursday, July 9th. Weiss Ratings cut McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of McDonald's in a research note on Monday, June 22nd. Finally, Royal Bank Of Canada reiterated a "sector perform" rating on shares of McDonald's in a report on Tuesday, June 23rd. Fifteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $336.32.

McDonald's Price Performance

MCD opened at $267.50 on Tuesday. The company has a market capitalization of $190.06 billion, a PE ratio of 22.05, a price-to-earnings-growth ratio of 2.78 and a beta of 0.41. McDonald's Corporation has a fifty-two week low of $264.09 and a fifty-two week high of $341.75. The business has a 50-day moving average of $276.94 and a 200-day moving average of $299.99.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating the consensus estimate 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 business had revenue of $6.52 billion during the quarter, compared to analysts' expectations of $6.47 billion. During the same quarter in the previous year, the business posted $2.67 EPS. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. On average, equities research analysts expect that McDonald's Corporation will post 12.86 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were paid a $1.86 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. McDonald's's payout ratio is 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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