Cullinan Associates Inc. Cuts Stake in McDonald's Corporation $MCD

Key Points

• Cullinan Associates Inc. cut its McDonald’s stake by 11.9% in the first quarter, selling 7,617 shares and leaving it with 56,651 shares valued at about $17.6 million.
• Several institutional investors and hedge funds also adjusted their MCD holdings, while insiders sold shares too; over the last three months, insiders sold 8,681 shares worth about $2.46 million.
• McDonald’s recently beat earnings expectations, reporting $2.83 EPS and $6.52 billion in revenue, but analyst sentiment remains mixed with a consensus rating of “Hold” and a target price near $334.96.

Cullinan Associates Inc. trimmed its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 11.9% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 56,651 shares of the fast-food giant's stock after selling 7,617 shares during the quarter. McDonald's comprises 1.4% of Cullinan Associates Inc.'s portfolio, making the stock its 16th largest position. Cullinan Associates Inc.'s holdings in McDonald's were worth $17,607,000 as of its most recent filing with the SEC.

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

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on MCD. Evercore set a $350.00 price objective on McDonald's in a report on Friday, May 8th. Robert W. Baird set a $305.00 target price on shares of McDonald's in a research report on Thursday, May 7th. Royal Bank Of Canada restated a "sector perform" rating on shares of McDonald's in a report on Tuesday, June 23rd. Rothschild & Co Redburn raised shares of McDonald's from a "sell" rating to a "neutral" rating and lifted their price target for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Finally, Erste Group Bank downgraded shares of McDonald's from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Fifteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, McDonald's has a consensus rating of "Hold" and a consensus target price of $334.96.

Insiders Place Their Bets

In other news, insider Joseph M. Erlinger sold 5,252 shares of the business'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 directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 8,681 shares of company stock worth $2,456,440. Corporate insiders own 0.26% of the company's stock.

McDonald's Stock Down 0.6%

Shares of NYSE MCD traded down $1.56 on Friday, hitting $274.93. The company had a trading volume of 2,978,722 shares, compared to its average volume of 4,490,551. McDonald's Corporation has a 12-month low of $264.53 and a 12-month high of $341.75. The business has a 50 day moving average of $278.57 and a two-hundred day moving average of $301.85. The firm has a market capitalization of $195.34 billion, a P/E ratio of 22.67, a PEG ratio of 2.74 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last announced its 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. The business had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The company's revenue was up 9.4% on a year-over-year basis. During the same period last year, the business posted $2.67 EPS. On average, sell-side analysts anticipate that McDonald's Corporation will post 12.91 earnings per share for the current year.

McDonald's Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were paid a dividend of $1.86 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. McDonald's's dividend payout ratio (DPR) is currently 61.34%.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald's is leaning into beverages with a new custom drink push, including a Dirty Dr. Pepper-style offering, which could help drive traffic and lift average ticket sizes as chains compete for drink sales. McDonald’s Dirty Dr. Pepper Leads Its New Custom Drink Push
• Positive Sentiment: McDonald's is also using promotions and limited-time offers, including free fries for National French Fry Day and a BT21 Happy Meal rollout, to support customer engagement and near-term sales momentum. Free fries article BT21 Happy Meals article
• Positive Sentiment: Some recent commentary suggests McDonald's remains a defensible consumer name, with analysts and market writers highlighting its cash generation, brand strength, and potential to benefit from event-driven marketing around the FIFA World Cup. FIFA World Cup growth strategy article
• Neutral Sentiment: Several lifestyle pieces about ordering hacks, retro campaigns, and menu combinations are generating buzz, but these appear more like brand-interest stories than material stock drivers. Filet-O-Fish and Snack Wrap article Ordering hack article Vinyl record campaign article
• Neutral Sentiment: McDonald's has also been the subject of mixed third-party coverage comparing it with other consumer names and discussing macro risks, but these articles do not signal a clear company-specific catalyst on their own. McDonald's or Pfizer article Index exit and oil shock article
• Negative Sentiment: A Deutsche Bank note says McDonald's U.S. comparable sales likely hit a new low in the second quarter, reinforcing worries that traffic and same-store sales may be weakening. US sales likely hit new low article
• Negative Sentiment: Recent market pieces also note that McDonald's has been registering bigger daily declines than the broader market, suggesting investors remain cautious heading into upcoming sales and earnings-related updates. Registers a bigger fall than the market article

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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