Diversify Wealth Management LLC Increases Holdings in McDonald's Corporation $MCD

Key Points

• Diversify Wealth Management LLC boosted its McDonald’s stake by 80.1% in the first quarter, ending with 30,068 shares worth about $8.72 million.
• McDonald’s reported better-than-expected Q1 earnings, with EPS of $2.83 versus the $2.74 estimate and revenue of $6.52 billion, up 9.4% from a year ago.
• The company’s outlook is mixed: it pays a 2.7% dividend yield and analysts still average a Hold rating, but some broker notes warn U.S. comparable sales may be weakening.

Diversify Wealth Management LLC lifted its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 80.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 30,068 shares of the fast-food giant's stock after purchasing an additional 13,375 shares during the period. Diversify Wealth Management LLC's holdings in McDonald's were worth $8,722,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in MCD. Brighton Jones LLC raised its holdings in shares of McDonald's by 21.6% in the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock worth $2,692,000 after purchasing an additional 1,649 shares during the period. Revolve Wealth Partners LLC grew its holdings in 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 purchasing an additional 52 shares during the period. Sivia Capital Partners LLC grew its holdings in 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 purchasing an additional 206 shares during the period. United Bank increased its position in McDonald's by 6.0% in the second quarter. United Bank now owns 8,102 shares of the fast-food giant's stock worth $2,367,000 after buying an additional 459 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its position in McDonald's by 2.5% in the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant's stock worth $3,780,000 after buying an additional 312 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction dated Thursday, May 28th. The stock was 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 of the company's stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the company's 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 sale, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 8,681 shares of company stock valued at $2,456,440 in the last ninety days. Insiders own 0.26% of the company's stock.

McDonald's Price Performance

McDonald's stock opened at $274.93 on Monday. McDonald's Corporation has a one year low of $264.53 and a one year high of $341.75. The business has a fifty day moving average price of $278.57 and a 200-day moving average price of $301.75. 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 quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating the consensus estimate 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 company had revenue of $6.52 billion during the quarter, compared to analysts' expectations of $6.47 billion. During the same period in the previous year, the business earned $2.67 earnings per share. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. Sell-side analysts expect that McDonald's Corporation will post 12.91 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

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

Wall Street Analyst Weigh In

A number of brokerages have recently commented on MCD. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of McDonald's in a research report on Monday, June 22nd. Rothschild & Co Redburn upgraded McDonald's from a "sell" rating to a "neutral" rating and boosted their price objective for the company from $260.00 to $306.00 in a research note on Thursday, April 23rd. JPMorgan Chase & Co. dropped their price objective on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a report on Monday, May 11th. Erste Group Bank lowered shares of McDonald's from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Finally, Deutsche Bank Aktiengesellschaft set a $325.00 target price on shares of McDonald's in a research note on Thursday. Fifteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $334.96.

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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