Czech National Bank Grows Holdings in McDonald's Corporation $MCD

Key Points

• Czech National Bank increased its McDonald’s stake by 4.3% in the second quarter, bringing its holdings to 202,237 shares valued at approximately $54.7 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s beat quarterly earnings expectations with adjusted EPS of $3.38, while revenue rose 3.7% year over year to $7.10 billion. However, U.S. comparable sales grew only 0.8% amid weak lower-income customer spending, a complicated value menu and intensifying competition.
• The stock traded near $276, and McDonald’s announced a quarterly dividend of $1.86, representing a 2.7% annualized yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $325.44, though several firms recently lowered their targets and insiders sold shares.

Czech National Bank boosted its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 4.3% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 202,237 shares of the fast-food giant's stock after buying an additional 8,285 shares during the quarter. Czech National Bank's holdings in McDonald's were worth $54,667,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. Norges Bank bought a new stake in shares of McDonald's in the fourth quarter valued at about $2,890,438,000. Diamant Asset Management Inc. lifted its position in McDonald's by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock valued at $806,917,000 after acquiring an additional 2,587,986 shares during the last quarter. J. Stern & Co. LLP lifted its holdings in shares of McDonald's by 9,867.5% during the 4th 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 during the last quarter. Viking Global Investors LP raised its stake 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 valued at $913,157,000 after buying an additional 1,974,998 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in McDonald's by 49.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant's stock worth $948,779,000 after acquiring an additional 1,033,041 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald's News Roundup

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

• Positive Sentiment: Quarterly profit exceeded expectations. McDonald’s reported adjusted earnings of $3.38 per share, above the $3.32 consensus estimate, while revenue rose 3.7% year over year to $7.10 billion. The earnings beat and 31.7% net margin provide support for the stock. McDonald’s posts strong second quarter profit, names new leader for US market
• Positive Sentiment: Analyst support and income appeal remain intact. BTIG reaffirmed its Buy rating with a $350 price target, while the stock’s dividend and consensus Moderate Buy view may attract investors after the recent weakness. BTIG rating reaffirmed
• Positive Sentiment: Management is taking corrective action. McDonald’s appointed a new U.S. leader and is reviewing value offers, digital promotions, restaurant workloads and marketing execution. Stronger international performance could help offset domestic softness. MCD Q2 Earnings Call Flags U.S. Execution Gaps
• Neutral Sentiment: Price targets were reduced but remain above the current level. Morgan Stanley, RBC and Baird lowered their targets to $319, $295 and $285, respectively, citing a more cautious near-term outlook. Their ratings range from Equal Weight to Neutral. Analyst price-target changes
• Negative Sentiment: U.S. growth remains the central concern. Domestic comparable sales rose only 0.8% in the second quarter, and management acknowledged that the current value menu is too complicated and that reduced digital discounts have hurt traffic. Lower-income customers are also spending less at McDonald’s. McDonald’s Looks to Fix a Value Misfire
• Negative Sentiment: Competitive pressure is increasing. Burger King is gaining U.S. sales momentum after revamping its Whopper, while McDonald’s expansion toward 50,000 restaurants is taking longer than planned because of economic conditions. Burger King’s US sales surge while McDonald’s growth flails

Insider Transactions at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction dated 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 completion of the transaction, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 8,348 shares of company stock valued at $2,355,634 in the last three months. Corporate insiders own 0.26% of the company's stock.

McDonald's Stock Performance

MCD stock opened at $276.05 on Friday. The firm has a market cap of $196.13 billion, a PE ratio of 22.42, a P/E/G ratio of 2.94 and a beta of 0.41. The firm's fifty day moving average is $274.14 and its 200 day moving average is $296.58. McDonald's Corporation has a one year low of $260.96 and a one year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.13 billion. McDonald's had a negative return on equity of 512.80% and a net margin of 31.72%.The business's revenue was up 3.7% compared to the same quarter last year. During the same period in the previous year, the business earned $3.19 earnings per share. Research analysts predict that McDonald's Corporation will post 12.86 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be given a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. McDonald's's dividend payout ratio (DPR) is 60.44%.

Analysts Set New Price Targets

MCD has been the topic of several recent analyst reports. Freedom Capital upgraded shares of McDonald's from a "hold" rating to a "strong-buy" rating in a report on Wednesday. Morgan Stanley lowered their target price on shares of McDonald's from $322.00 to $319.00 and set an "equal weight" rating for the company in a research note on Wednesday. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a report on Tuesday. KeyCorp dropped their price objective on shares of McDonald's from $315.00 to $305.00 and set an "overweight" rating on the stock in a report on Wednesday. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating and set a $295.00 price target on shares of McDonald's in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $325.44.

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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