DNB Asset Management AS Reduces Position in McDonald's Corporation $MCD

Key Points

• DNB Asset Management AS reduced its McDonald’s stake by 13.9% in the fourth quarter, selling 23,777 shares and leaving it with 146,795 shares worth about $44.9 million.
• McDonald’s recently beat earnings and revenue estimates for the quarter, reporting $2.83 EPS versus $2.74 expected and $6.52 billion in revenue versus $6.47 billion expected, with revenue up 9.4% year over year.
• Wall Street remains generally constructive on the stock, with a Moderate Buy consensus and an average target price of $334.45, though shares were trading below their recent moving averages and near the 52-week low.

DNB Asset Management AS cut its position in McDonald's Corporation (NYSE:MCD - Free Report) by 13.9% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 146,795 shares of the fast-food giant's stock after selling 23,777 shares during the period. DNB Asset Management AS's holdings in McDonald's were worth $44,865,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of McDonald's by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock valued at $22,112,675,000 after purchasing an additional 703,458 shares during the last quarter. State Street Corp boosted its holdings in shares of McDonald's by 0.6% in the 3rd quarter. State Street Corp now owns 35,024,857 shares of the fast-food giant's stock valued at $10,643,704,000 after buying an additional 196,505 shares in the last quarter. Legal & General Group Plc boosted its holdings in shares of McDonald's by 6.4% in the 3rd quarter. Legal & General Group Plc now owns 4,757,967 shares of the fast-food giant's stock valued at $1,445,899,000 after buying an additional 286,284 shares in the last quarter. Ameriprise Financial Inc. boosted its holdings in shares of McDonald's by 0.5% in the 3rd quarter. Ameriprise Financial Inc. now owns 4,422,014 shares of the fast-food giant's stock valued at $1,343,501,000 after buying an additional 21,168 shares in the last quarter. Finally, Franklin Resources Inc. boosted its holdings in shares of McDonald's by 36.6% in the 3rd quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant's stock valued at $1,336,155,000 after buying an additional 1,179,244 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on MCD. Morgan Stanley set a $331.00 target price on shares of McDonald's in a report on Friday, May 8th. Wells Fargo & Company lowered their target price on shares of McDonald's from $355.00 to $320.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Royal Bank Of Canada lowered their target price on shares of McDonald's from $330.00 to $305.00 and set a "sector perform" rating for the company in a report on Friday, May 8th. Jefferies Financial Group increased their price target on shares of McDonald's from $360.00 to $375.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Finally, Cfra upgraded shares of McDonald's to a "buy" rating in a research note on Friday, May 8th. Seventeen research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $334.45.

McDonald's Price Performance

Shares of NYSE:MCD opened at $276.42 on Friday. The stock has a market cap of $196.40 billion, a P/E ratio of 22.79, a P/E/G ratio of 2.73 and a beta of 0.43. The firm has a fifty day moving average price of $304.30 and a 200 day moving average price of $310.02. McDonald's Corporation has a 1-year low of $271.98 and a 1-year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. The firm had revenue of $6.52 billion during the quarter, compared to analysts' expectations of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. McDonald's's quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.67 EPS. Sell-side analysts expect that McDonald's Corporation will post 12.96 EPS for the current fiscal year.

Insiders Place Their Bets

In other McDonald's news, insider Joseph M. Erlinger sold 333 shares of the company's stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $302.72, for a total transaction of $100,805.76. Following the completion of the transaction, the insider owned 8,067 shares in the company, valued at approximately $2,442,042.24. This represents a 3.96% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Jonathan Banner sold 6,201 shares of the company's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the transaction, the executive vice president owned 2,291 shares of the company's stock, valued at approximately $763,567.39. The trade was a 73.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 12,119 shares of company stock valued at $3,945,973. 0.26% of the stock is owned by company insiders.

Trending Headlines about McDonald's

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

• Positive Sentiment: Several analysts and market commentators argue that McDonald’s looks oversold and inexpensive relative to its historical valuation, with strong fundamentals and long-term growth prospects potentially supporting a rebound. McDonald's Is the Cheapest It’s Been in Years—Does That Make It a Buy?
• Positive Sentiment: McDonald’s landed a major naming-rights deal for the Chicago Fire stadium, which adds brand visibility and reinforces the company’s deep marketing reach. McDonald's Lands Naming Rights Deal for $750 Million Chicago Fire Stadium
• Neutral Sentiment: McDonald’s remains a widely watched dividend stalwart, with its long record of shareholder payouts keeping it on income investors’ radar. Don’t Look Now, But 4 Blue-Chip Giants Could Be the Newest Dividend Kings
• Neutral Sentiment: News coverage also highlights that McDonald’s is a trending stock and a subject of debate among investors, but this mostly reflects attention rather than a clear new catalyst. McDonald's Corporation (MCD) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Attention is centered on weaker U.S. company-run restaurant margins, with investors worried about pricing pressure, cost inflation, and the ownership mix affecting profitability. McDonald's Company-Run Margins Draw Focus: Can Ownership Mix Help?
• Negative Sentiment: Commentary from Jim Cramer and others points to the stock’s recent weakness, with concerns that McDonald’s has been “breaking down” despite being a defensive name. Jim Cramer on McDonald’s: “QSR I Think Is the Better”
• Negative Sentiment: Broader consumer cost pressures, including rising restaurant prices and higher gas prices, may weigh on traffic and spending at quick-service restaurants like McDonald’s. Grocery and Restaurant Prices Post Biggest Jump Since 2022

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.

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.