Engineers Gate Manager LP Buys New Stake in McDonald's Corporation $MCD

Key Points

• Engineers Gate Manager LP acquired 4,237 McDonald’s shares worth approximately $1.15 million in the second quarter. Institutional investors collectively own 70.29% of MCD.
• McDonald’s raised its quarterly dividend 3.8% to $1.93 per share, marking 50 consecutive years of dividend increases and giving the stock an annualized yield of about 3.1%.
• The stock opened at $248.69, near its 12-month low of $247.65. Although quarterly EPS beat estimates, analysts maintain a “Moderate Buy” consensus with an average price target of $316.39.

Engineers Gate Manager LP bought a new position in shares of McDonald's Corporation (NYSE:MCD - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund bought 4,237 shares of the fast-food giant's stock, valued at approximately $1,145,000.

A number of other hedge funds also recently bought and sold shares of MCD. Norges Bank bought a new position in McDonald's during the fourth quarter worth $2,890,438,000. Bank of New York Mellon Corp acquired a new position in McDonald's during the 2nd quarter valued at $1,359,276,000. Diamant Asset Management Inc. boosted its holdings in McDonald's by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock valued at $806,917,000 after purchasing an additional 2,587,986 shares during the period. J. Stern & Co. LLP boosted its holdings in McDonald's by 9,867.5% in the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock valued at $776,608,000 after purchasing an additional 2,515,515 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its position in McDonald's by 49.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant's stock worth $948,779,000 after purchasing an additional 1,033,041 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.

Key McDonald's News

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

• Positive Sentiment: McDonald’s raised its quarterly dividend 3.8% to $1.93 per share, or $7.72 annualized, marking 50 consecutive years of increases and officially placing the company among the Dividend Kings. The increase supports the stock’s income appeal, with a yield of approximately 3.1%. McDonald’s marks 50 consecutive years of dividend increases
• Positive Sentiment: BTIG initiated or reiterated a “Buy” rating, while Citigroup maintained a Buy rating despite reducing its price target from $345 to $310. The revised target still implies substantial potential upside from current levels. McDonald’s earns Buy rating from BTIG Research
• Positive Sentiment: One Wall Street analyst argues that the selloff has created a possible 45% recovery opportunity if McDonald’s can restore sales momentum and close its valuation gap with the broader market. McDonald’s potential 45% gain

McDonald's Stock Performance

MCD opened at $248.69 on Friday. The firm has a market cap of $175.98 billion, a price-to-earnings ratio of 20.20, a PEG ratio of 2.69 and a beta of 0.41. The firm's 50-day simple moving average is $264.98 and its 200-day simple moving average is $283.86. McDonald's Corporation has a twelve month low of $247.65 and a twelve month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (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 firm's quarterly revenue was up 3.7% on a year-over-year basis. During the same period last year, the firm posted $3.19 EPS. As a group, sell-side analysts anticipate that McDonald's Corporation will post 12.88 EPS for the current fiscal year.

McDonald's Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be given a $1.93 dividend. This represents a $7.72 annualized dividend and a yield of 3.1%. The ex-dividend date is Tuesday, December 1st. This is a positive change from McDonald's's previous quarterly dividend of $1.86. McDonald's's dividend payout ratio is presently 60.44%.

Analyst Ratings Changes

Several research analysts have recently issued reports on MCD shares. Tigress Financial boosted their price objective on shares of McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a report on Friday, July 17th. Guggenheim decreased their target price on McDonald's from $320.00 to $290.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 5th. Weiss Ratings lowered McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Argus lowered their price target on McDonald's from $320.00 to $310.00 and set a "buy" rating on the stock in a research note on Wednesday, August 26th. Finally, Mizuho cut their price target on McDonald's from $300.00 to $290.00 and set a "neutral" rating for the company in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $316.39.

McDonald's Company Profile

McDonald's Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald's brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald's mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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