Cornerstone Planning LLC Invests $1.85 Million in McDonald's Corporation $MCD

Key Points

• Cornerstone Planning LLC disclosed a new fourth-quarter stake in McDonald’s, buying 6,033 shares valued at about $1.85 million.
• McDonald’s continues to attract major institutional interest, with hedge funds and other investors holding 70.29% of the company’s stock. Several firms added large positions or significantly increased their holdings during the period.
• The company reported better-than-expected Q1 earnings, posting EPS of $2.83 versus estimates of $2.74 and revenue of $6.52 billion, while also paying a quarterly dividend of $1.86 per share.

Cornerstone Planning LLC purchased a new stake in McDonald's Corporation (NYSE:MCD - Free Report) during the fourth quarter, according to its most recent filing with the SEC. The firm purchased 6,033 shares of the fast-food giant's stock, valued at approximately $1,851,000.

Several other hedge funds and other institutional investors have also bought and sold shares of MCD. Norges Bank acquired a new position in McDonald's during the fourth quarter valued at approximately $2,890,438,000. J. Stern & Co. LLP increased its stake in McDonald's by 9,867.5% in the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock valued at $776,608,000 after purchasing an additional 2,515,515 shares in the last quarter. Viking Global Investors LP raised its holdings in McDonald's by 171.7% in the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock worth $913,157,000 after purchasing an additional 1,974,998 shares during the period. Franklin Resources Inc. boosted its position in shares of McDonald's by 36.6% during the third quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant's stock worth $1,336,155,000 after purchasing an additional 1,179,244 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in shares of McDonald's by 111.3% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,071,296 shares of the fast-food giant's stock worth $629,446,000 after purchasing an additional 1,090,849 shares in the last quarter. Institutional investors own 70.29% of the company's stock.

McDonald's Stock Up 0.1%

Shares of MCD stock opened at $279.00 on Friday. The firm has a fifty day moving average of $286.98 and a 200-day moving average of $305.80. McDonald's Corporation has a 12-month low of $271.85 and a 12-month high of $341.75. The company has a market capitalization of $198.23 billion, a price-to-earnings ratio of 23.00, a P/E/G ratio of 2.78 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. The business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm's quarterly revenue was up 9.4% on a year-over-year basis. During the same period last year, the business posted $2.67 earnings per share. On average, equities analysts expect that McDonald's Corporation will post 12.93 EPS for the current year.

McDonald's Dividend Announcement

The company also recently declared 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 of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. McDonald's's dividend payout ratio (DPR) is currently 61.34%.

Insider Activity

In other news, insider Joseph M. Erlinger sold 5,252 shares of the business's stock in a transaction dated 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 sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, 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 disclosure for this sale is available in the SEC filing. Insiders sold a total of 11,307 shares of company stock worth $3,262,622 in the last three months. Company insiders own 0.26% of the company's stock.

Analyst Ratings Changes

A number of analysts recently commented on MCD shares. Robert W. Baird set a $305.00 price objective on shares of McDonald's in a research report on Thursday, May 7th. Tigress Financial lifted their target price on McDonald's from $360.00 to $385.00 and gave the stock a "buy" rating in a report on Friday, March 6th. Barclays decreased their target price on McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Rothschild & Co Redburn upgraded McDonald's from a "sell" rating to a "neutral" rating and increased their price target for the stock from $260.00 to $306.00 in a report on Thursday, April 23rd. Finally, JPMorgan Chase & Co. dropped their price target on McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a research report on Monday, May 11th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, McDonald's presently has a consensus rating of "Moderate Buy" and a consensus price target of $336.26.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s is reviving its original Fried Apple Pie for the first time since 1992, a nostalgia-driven menu move that could boost customer traffic, social buzz, and limited-time sales. McDonald’s (MCD) Brings Back Fried Apple Pie After More Than 30 Years
• Positive Sentiment: Recent analyst coverage highlighted McDonald’s value meals, menu innovation, and brand activations as helping lift same-store sales, with Australia cited as a key area of momentum. McDonald's Blends Value With Brand Activations: Is It Paying Off?
• Positive Sentiment: Seeking Alpha published a rating upgrade arguing McDonald’s “McValue” strategy has finally reached buy territory, reinforcing the case that the company’s value offerings are supporting demand. McDonald's (Mc)Value Finally Reaches Buy Territory (Rating Upgrade)
• Neutral Sentiment: Coverage around McDonald’s AI drive-thru plans suggests the company is still experimenting with automation to improve service and efficiency, but the near-term stock impact is unclear. McDonald’s AI drive-thru may take your next order
• Neutral Sentiment: Several articles about historic landmarks, Happy Meal toys, and food trivia are mostly brand-related publicity and are less likely to materially move the stock on their own.
• Negative Sentiment: Some recent commentary remains cautious, with one article arguing McDonald’s is still delivering but not enough to justify a buy, which may temper enthusiasm for the shares. McDonald's: Still Delivering, But Not Enough For A Buy

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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