Dimensional Fund Advisors LP Boosts Stake in McDonald's Corporation $MCD

Key Points

• Dimensional Fund Advisors LP increased its McDonald’s stake by 3.4% in the first quarter, adding 62,562 shares to bring its total to 1,909,321 shares worth about $593.4 million.
• McDonald’s reported better-than-expected quarterly results, with EPS of $2.83 versus estimates of $2.74 and revenue of $6.52 billion, up 9.4% year over year.
• The company also maintained a cash return to shareholders with a quarterly dividend of $1.86 per share, or $7.44 annualized, for a yield of 2.8%; analysts currently rate the stock a Moderate Buy with an average price target of $336.32.

Dimensional Fund Advisors LP lifted its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 3.4% in the first quarter, according to its most recent filing with the SEC. The fund owned 1,909,321 shares of the fast-food giant's stock after acquiring an additional 62,562 shares during the period. Dimensional Fund Advisors LP owned approximately 0.27% of McDonald's worth $593,366,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in MCD. Your Advocates Ltd. LLP bought a new position in shares of McDonald's during the 4th quarter valued at about $27,000. Park Place Capital Corp boosted its stake in McDonald's by 95.7% in the fourth 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 in the last quarter. IFC & Insurance Marketing Inc. purchased a new stake in McDonald's in the fourth quarter worth approximately $29,000. Abound Financial LLC bought a new position in McDonald's during the fourth quarter valued at approximately $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 last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald's Price Performance

Shares of McDonald's stock opened at $267.50 on Tuesday. McDonald's Corporation has a one year low of $264.09 and a one year high of $341.75. The business's 50 day simple moving average is $276.94 and its two-hundred day simple moving average is $299.99. The stock has a market capitalization of $190.06 billion, a P/E ratio of 22.05, a price-to-earnings-growth ratio of 2.78 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating analysts' consensus estimates of $2.74 by $0.09. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The firm had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the prior year, the firm posted $2.67 earnings per share. The business's quarterly revenue was up 9.4% compared to the same quarter last year. Sell-side analysts expect that McDonald's Corporation will post 12.86 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.8%. McDonald's's dividend payout ratio is presently 61.34%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Sanford C. Bernstein restated a "market perform" rating on shares of McDonald's in a report on Monday, June 22nd. KeyCorp reaffirmed an "overweight" rating on shares of McDonald's in a research note on Wednesday, July 15th. Evercore set a $350.00 target price on shares of McDonald's in a report on Friday, May 8th. Cfra upgraded shares of McDonald's to a "buy" rating in a research report on Friday, May 8th. 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 and twelve have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $336.32.

More McDonald's News

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

• Positive Sentiment: One Seeking Alpha article argues that McDonald's recent sell-off is creating an opportunity for investors, signaling that the stock may be undervalued after its decline. McDonald's Sell-Off Is Your Opportunity
• Positive Sentiment: Another article upgraded McDonald's to Buy, saying its consistency deserves a higher valuation and pointing to accelerating top- and bottom-line growth as signs of a potential turnaround. McDonald's: Consistency Deserves A Better Multiple (Rating Upgrade)
• Positive Sentiment: A separate bullish note said the stock is attractive after compression in earnings multiples and highlighted recent catalysts that could improve the business outlook. McDonald's: Consistency Deserves A Better Multiple (Rating Upgrade)
• Positive Sentiment: Coverage from Zacks focused on generally optimistic Wall Street analyst sentiment, which can support shares when investors expect favorable estimates or ratings. Is McDonald's (MCD) a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: Several lifestyle and menu-focused stories highlighted product novelty, including a new Caesar sauce and a drink item resembling a Starbucks-style pink drink, but these appear more brand-interest driven than material near-term catalysts. Review: McDonald's Caesar sauce is the tangy menu addition we didn't know we needed
• Negative Sentiment: Some recent commentary remains cautious, with one piece saying McDonald's stock “still not good enough,” reinforcing that not all investors are convinced the valuation or growth outlook has improved enough. McDonald's: Still Not Good Enough
• Negative Sentiment: An article on MCD’s 2026 weakness noted the stock is down sharply this year and said investors are bracing for softer same-store sales ahead of the next earnings report, which can weigh on sentiment. McDonald’s (MCD) Stock Struggles Continue: What’s Behind the 2026 Decline?

Insider Buying and Selling at McDonald's

In related news, insider Joseph M. Erlinger sold 5,252 shares of the firm'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 of the company's stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 8,681 shares of company stock valued at $2,456,440 in the last three months. 0.26% of the stock is currently owned by corporate insiders.

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.

Want to see what other hedge funds are holding MCD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McDonald's Corporation (NYSE:MCD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.