Dearborn Partners LLC Reduces Stock Holdings in McDonald's Corporation $MCD

Key Points

• Dearborn Partners LLC trimmed its McDonald’s stake by 2.3% in the fourth quarter, selling 3,887 shares and ending with 164,603 shares valued at about $50.3 million. McDonald’s remains its third-largest position.
• McDonald’s is leaning on major marketing and menu initiatives to drive traffic, including a FIFA World Cup 2026 campaign with collectible items and a broader “McDonald’s > NEXT” overhaul aimed at improving value and food quality.
• The stock has mixed signals from Wall Street and company insiders: analysts currently rate it a “Moderate Buy” with an average target of $336.26, while several insiders recently sold shares. The company also just reported better-than-expected quarterly EPS and revenue and announced a $1.86 quarterly dividend.

Dearborn Partners LLC reduced its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 2.3% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 164,603 shares of the fast-food giant's stock after selling 3,887 shares during the quarter. McDonald's accounts for 2.5% of Dearborn Partners LLC's holdings, making the stock its 3rd biggest position. Dearborn Partners LLC's holdings in McDonald's were worth $50,308,000 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. Brighton Jones LLC raised its holdings in shares of McDonald's by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock valued at $2,692,000 after acquiring an additional 1,649 shares during the period. Revolve Wealth Partners LLC raised its holdings in shares of McDonald's by 2.8% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock valued at $563,000 after acquiring an additional 52 shares during the period. Sivia Capital Partners LLC raised its holdings in shares of McDonald's by 11.4% during the second quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant's stock valued at $589,000 after acquiring an additional 206 shares during the period. United Bank raised its holdings in shares of McDonald's by 6.0% during the second quarter. United Bank now owns 8,102 shares of the fast-food giant's stock valued at $2,367,000 after acquiring an additional 459 shares during the period. Finally, Schnieders Capital Management LLC. raised its holdings in shares of McDonald's by 2.5% during the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant's stock valued at $3,780,000 after acquiring an additional 312 shares during the period. 70.29% of the stock is currently owned by institutional investors.

Key Stories Impacting McDonald's

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

• Positive Sentiment: McDonald’s launched a high-profile FIFA World Cup 2026 campaign with collectible cups, toys, and themed meals, which could lift same-store sales and create a short-term traffic boost. McDonald's launches global FIFA World Cup 2026 campaign with collectible cups, Squishmallows
• Positive Sentiment: The company’s “McDonald’s > NEXT” menu and experience overhaul signals management is actively addressing consumer value concerns and trying to improve food quality, which investors may view as supportive for longer-term demand. McDonald's Is Upgrading Its Menu. Should Investors Bite?
• Positive Sentiment: Multiple reports say the World Cup promotion is designed as McDonald’s biggest global campaign in years, potentially strengthening brand relevance with younger consumers and families. McDonald’s Is Launching Its Biggest-Ever Global Campaign. The Secret Weapon Is a Paper Cup.
• Neutral Sentiment: Media coverage highlighting McDonald’s appeal to Gen Z and its collectible marketing strategy may support brand momentum, but it is not yet a direct financial catalyst. Gen Z Trends Make These 3 Stocks Worth Watching (MCD)
• Neutral Sentiment: Some articles noted that McDonald’s shares have lagged this year, which frames the new campaign as a potential turnaround effort rather than proof of immediate earnings acceleration. McDonald's Is Upgrading Its Menu. Should Investors Bite?
• Negative Sentiment: One consumer-focused report said only 40% of customers view McDonald’s as a good value, underscoring the affordability and perception challenges the company is trying to fix. Only 40% of customers think McDonald's is a good value

Analyst Upgrades and Downgrades

MCD has been the topic of several research reports. Rothschild & Co Redburn upgraded shares of McDonald's from a "sell" rating to a "neutral" rating and upped their price objective for the company from $260.00 to $306.00 in a research note on Thursday, April 23rd. Weiss Ratings lowered shares of McDonald's from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, May 29th. Erste Group Bank lowered shares of McDonald's from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Evercore set a $350.00 price objective on shares of McDonald's in a research note on Friday, May 8th. Finally, Cfra upgraded shares of McDonald's to a "buy" rating in a research note on Friday, May 8th. Sixteen investment 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's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $336.26.

Insider Activity at McDonald's

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. 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 333 shares of the business's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $280.11, for a total transaction of $93,276.63. Following the transaction, the insider owned 7,734 shares in the company, valued at approximately $2,166,370.74. The trade was a 4.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 8,681 shares of company stock worth $2,631,594 over the last 90 days. Corporate insiders own 0.26% of the company's stock.

McDonald's Stock Up 2.6%

Shares of McDonald's stock opened at $279.73 on Friday. The stock has a market capitalization of $198.75 billion, a P/E ratio of 23.06, a price-to-earnings-growth ratio of 2.79 and a beta of 0.41. The company has a 50-day simple moving average of $291.97 and a 200 day simple moving average of $307.54. McDonald's Corporation has a 12-month low of $271.85 and a 12-month high of $341.75.

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. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the prior year, the firm earned $2.67 EPS. The company's revenue was up 9.4% on a year-over-year basis. On average, equities analysts anticipate that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be paid a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald's's dividend payout ratio (DPR) is presently 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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