Diversify Wealth Management LLC Buys 3,686 Shares of McDonald's Corporation $MCD

Key Points

• Diversify Wealth Management increased its McDonald’s stake by 12.3% in the second quarter, buying 3,686 shares and bringing its holdings to 33,754 shares valued at approximately $9.14 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s reported quarterly adjusted EPS of $3.38, ahead of the $3.32 consensus, while revenue of $7.10 billion came in slightly below expectations. The company is focusing on lower-priced meals and new beverages to address value-conscious consumers and slowing traffic.
• The stock has a “Moderate Buy” consensus rating with a $325.44 average price target, but analysts noted execution risks and some lowered targets. McDonald’s also declared a $1.86 quarterly dividend, equal to a 2.7% annualized yield.

Diversify Wealth Management LLC raised its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 12.3% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 33,754 shares of the fast-food giant's stock after buying an additional 3,686 shares during the quarter. Diversify Wealth Management LLC's holdings in McDonald's were worth $9,136,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Your Advocates Ltd. LLP bought a new position in McDonald's in the 4th quarter valued at $27,000. IFC & Insurance Marketing Inc. purchased a new position in McDonald's during the fourth quarter worth about $29,000. Abound Financial LLC bought a new position in McDonald's in the 4th quarter worth about $30,000. DecisionPoint Financial LLC increased its stake in McDonald's by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock worth $31,000 after acquiring an additional 97 shares during the last quarter. Finally, Entrust Financial LLC purchased a new stake in shares of McDonald's in the 4th quarter valued at about $31,000. 70.29% of the stock is currently owned by institutional investors.

McDonald's News Roundup

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

• Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers
• Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers
• Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys
• Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call
• Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground
• Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered
• Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report

McDonald's Stock Performance

NYSE:MCD opened at $272.61 on Monday. McDonald's Corporation has a fifty-two week low of $260.96 and a fifty-two week high of $341.75. The firm has a market cap of $192.91 billion, a PE ratio of 22.15, a price-to-earnings-growth ratio of 3.05 and a beta of 0.41. The business has a 50 day moving average price of $273.81 and a 200-day moving average price of $295.15.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating the consensus estimate of $3.32 by $0.06. The firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company's quarterly revenue was up 3.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.19 earnings per share. Research analysts predict that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Dividend Announcement

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

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. Citigroup lifted their target price on shares of McDonald's from $335.00 to $345.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Guggenheim lowered their price objective on shares of McDonald's from $320.00 to $290.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 5th. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a report on Tuesday, August 4th. KeyCorp reduced their target price on McDonald's from $315.00 to $305.00 and set an "overweight" rating on the stock in a research note on Wednesday, August 5th. Finally, Sanford C. Bernstein reissued a "market perform" rating and set a $295.00 price objective on shares of McDonald's in a report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $325.44.

Insider Activity

In related news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the transaction, the insider directly owned 7,734 shares of the company's stock, valued at $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 8,348 shares of company stock valued at $2,355,634. Corporate insiders own 0.26% of the company's stock.

About McDonald's

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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