CORDA Investment Management LLC. Increases Stock Holdings in McDonald's Corporation $MCD

Key Points

• CORDA Investment Management increased its McDonald’s stake by 5.4% in the second quarter, holding 89,124 shares valued at approximately $24.1 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s shares traded near $255.53, close to their 52-week low and below both the 50-day and 200-day moving averages. The stock has faced pressure from slowing U.S. sales and execution concerns.
• The company exceeded quarterly EPS expectations with $3.38 versus the $3.32 consensus, while revenue rose 3.7% year over year to $7.10 billion. McDonald’s declared a quarterly dividend of $1.86 per share, and analysts maintain a “Moderate Buy” consensus with an average price target of $321.35.

CORDA Investment Management LLC. increased its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 5.4% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 89,124 shares of the fast-food giant's stock after buying an additional 4,571 shares during the period. McDonald's accounts for 1.5% of CORDA Investment Management LLC.'s portfolio, making the stock its 27th largest position. CORDA Investment Management LLC.'s holdings in McDonald's were worth $24,091,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. California State Teachers Retirement System grew its holdings in McDonald's by 27,036.7% in the second quarter. California State Teachers Retirement System now owns 302,891,546 shares of the fast-food giant's stock worth $81,874,614,000 after purchasing an additional 301,775,375 shares during the period. State Street Corp raised its stake in McDonald's by 2.7% during 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 buying an additional 959,140 shares during the last quarter. Geode Capital Management LLC grew its position 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 buying an additional 76,090 shares during the period. Price T Rowe Associates Inc. MD grew its stake 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 purchased a new position in shares of McDonald's in the fourth quarter valued at about $2,890,438,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

McDonald's Trading Down 0.1%

MCD traded down $0.16 during midday trading on Tuesday, hitting $255.53. 4,196,825 shares of the company were exchanged, compared to its average volume of 3,941,729. The company's 50 day simple moving average is $269.43 and its 200 day simple moving average is $288.61. The firm has a market capitalization of $180.82 billion, a price-to-earnings ratio of 20.76, a price-to-earnings-growth ratio of 2.76 and a beta of 0.41. McDonald's Corporation has a 1-year low of $254.28 and a 1-year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The firm had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same period in the prior year, the firm posted $3.19 earnings per share. The firm's quarterly revenue was up 3.7% compared to the same quarter last year. On average, equities analysts anticipate that McDonald's Corporation will post 12.87 EPS for the current year.

McDonald's Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be given a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.9%. McDonald's's payout ratio is presently 60.44%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on MCD shares. Evercore set a $320.00 price objective on shares of McDonald's in a research note on Thursday, July 23rd. Freedom Capital raised McDonald's from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 5th. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $295.00 price target on shares of McDonald's in a research note on Wednesday, August 5th. KeyCorp decreased their price objective on McDonald's from $315.00 to $305.00 and set an "overweight" rating for the company in a report on Wednesday, August 5th. Finally, Weiss Ratings lowered McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, McDonald's has a consensus rating of "Moderate Buy" and an average target price of $321.35.

Key Stories Impacting McDonald's

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

• Positive Sentiment: McDonald’s is reportedly slowing its restaurant expansion to protect returns as construction costs rise and consumers remain price-sensitive. A more disciplined development pace could improve new-restaurant economics and reduce capital risk. Can MCD's Slower Expansion Pace Help Protect New-Restaurant Returns?
• Positive Sentiment: A Milwaukee franchisee says sales at his seven locations are growing at double-digit rates, attributing the gains to local execution, customer engagement and operational initiatives. The example suggests individual operators can still outperform despite broader U.S. sales softness. McDonald's franchisee sales are up
• Neutral Sentiment: McDonald’s is rethinking its strategy as an unexpected customer group increasingly buys Happy Meals, potentially broadening the product’s appeal beyond children. The report signals a marketing opportunity but provides no immediate financial forecast. McDonald’s CEO Says an Unlikely Group Is Turning to Happy Meals
• Neutral Sentiment: The company plans a first-of-its-kind U.K. location where customers can make their own burgers. The experiential concept could generate publicity and engagement, but its impact on companywide results is likely limited initially. McDonald’s reveals new UK store
• Neutral Sentiment: Market coverage continues to describe McDonald’s as a defensive stock ahead of inflation data and the Federal Reserve’s rate decision, which may support investor interest during periods of volatility. 5 Defensive Stocks to Watch
• Negative Sentiment: Analysts note that McDonald’s U.S. sales have slowed because of execution issues, even as other major franchised restaurant companies reported stronger results. This is the clearest fundamental pressure on MCD and helps explain its weaker share performance. Why Franchise Models Are Winning the Restaurant Stock Divide
• Negative Sentiment: Reports of customers criticizing a children’s area that lacks toys or playground equipment could reinforce concerns about an uneven in-store experience, though the issue appears localized. McDonald’s also deleted a viral post involving a controversial intern claim, creating a minor reputational and social-media risk. McDonald’s guests criticize kids corner McDonald’s deletes viral post

Insider Activity

In other McDonald's news, insider Joseph Erlinger sold 5,252 shares of the company's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.26% of the stock is owned by company 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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