Easterly Investment Partners LLC Sells 5,754 Shares of McDonald's Corporation $MCD

Key Points

• Easterly Investment Partners cut its McDonald’s stake by 42.8% in the fourth quarter, selling 5,754 shares and leaving the fund with 7,691 shares valued at about $2.35 million.
• Institutional ownership remains heavy, with firms like Vanguard, State Street, and Geode adding positions; overall, 70.29% of McDonald’s stock is owned by institutional investors.
• McDonald’s recently beat earnings expectations, raised its quarterly dividend to $1.86 per share, and analysts currently have a consensus rating of Hold with an average price target of $334.45.

Easterly Investment Partners LLC trimmed its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 42.8% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,691 shares of the fast-food giant's stock after selling 5,754 shares during the quarter. Easterly Investment Partners LLC's holdings in McDonald's were worth $2,351,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also bought and sold shares of MCD. Vanguard Group Inc. grew 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 worth $22,112,675,000 after buying an additional 703,458 shares during the last quarter. State Street Corp grew its position 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 worth $10,643,704,000 after buying an additional 196,505 shares during the last quarter. Geode Capital Management LLC grew its position in shares of McDonald's by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock worth $5,195,965,000 after buying an additional 76,090 shares during the last quarter. Norges Bank bought a new stake in shares of McDonald's in the 4th quarter worth approximately $2,890,438,000. Finally, Legal & General Group Plc grew its position 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 worth $1,445,899,000 after buying an additional 286,284 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on MCD. Wells Fargo & Company cut their price objective on McDonald's from $355.00 to $320.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. Mizuho lifted their price objective on McDonald's from $300.00 to $325.00 and gave the stock a "neutral" rating in a research report on Friday, February 6th. Robert W. Baird set a $305.00 price objective on McDonald's in a research report on Thursday, May 7th. Guggenheim cut their price objective on McDonald's from $325.00 to $320.00 and set a "neutral" rating on the stock in a research report on Friday, February 13th. Finally, Sanford C. Bernstein reiterated a "market perform" rating and issued a $340.00 price objective on shares of McDonald's in a research report on Thursday, February 12th. Sixteen research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $334.45.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s unveiled “McDonald’s NEXT,” a companywide growth strategy focused on automation, improved restaurant design, better food quality, stronger customer service, and more effective social media marketing. Article Title
• Positive Sentiment: Analysts and recent commentary suggest McDonald’s is gaining market share in a cautious consumer environment by leaning on low-cost meals, menu innovation, and strong value marketing. Article Title
• Neutral Sentiment: McDonald’s also highlighted plans around restaurant operating efficiency and franchisee support, which could improve margins over time but will likely take time to show up in results. Article Title
• Neutral Sentiment: An executive vice president sold shares in a recent insider transaction, which is worth watching but is not necessarily a fundamental red flag on its own. Article Title

Insiders Place Their Bets

In other McDonald's news, insider Joseph M. Erlinger sold 2,626 shares of McDonald's stock in a transaction on Friday, April 10th. The stock was sold at an average price of $307.00, for a total transaction of $806,182.00. Following the completion of the transaction, the insider owned 8,400 shares in the company, valued at approximately $2,578,800. The trade was a 23.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction 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 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 SEC filing for this sale provides additional information. Insiders have sold 8,681 shares of company stock valued at $2,631,594 in the last quarter. 0.26% of the stock is owned by company insiders.

McDonald's Stock Down 1.1%

MCD opened at $276.19 on Tuesday. The stock has a market cap of $196.23 billion, a PE ratio of 22.77, a PEG ratio of 2.78 and a beta of 0.41. The business has a 50 day moving average of $294.66 and a 200-day moving average of $308.42. McDonald's Corporation has a 52 week low of $271.98 and a 52 week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating analysts' consensus estimates of $2.74 by $0.09. The company had revenue of $6.52 billion during the quarter, compared to analysts' expectations of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter last year, the business posted $2.67 EPS. Equities analysts anticipate that McDonald's Corporation will post 12.93 EPS for the current year.

McDonald's Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd will be paid a dividend of $1.86 per share. The ex-dividend date is Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald's's payout ratio is presently 61.34%.

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.

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