Epoch Investment Partners Inc. Acquires 5,394 Shares of McDonald's Corporation $MCD

Key Points

• Epoch Investment Partners increased its McDonald’s stake by 2.6% in Q1, buying 5,394 shares and bringing its total holding to 209,665 shares valued at about $65.2 million.
• McDonald’s reported better-than-expected quarterly results, with EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion, up 9.4% from a year earlier.
• The company declared a quarterly dividend of $1.86 per share, which annualizes to $7.44 and implies a 2.8% yield, while analysts maintain a Moderate Buy consensus despite some target-price cuts.

Epoch Investment Partners Inc. boosted its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 2.6% in the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 209,665 shares of the fast-food giant's stock after buying an additional 5,394 shares during the quarter. Epoch Investment Partners Inc.'s holdings in McDonald's were worth $65,162,000 at the end of the most recent quarter.

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

Insider Buying and Selling

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

McDonald's Stock Performance

NYSE:MCD opened at $264.46 on Friday. The stock has a 50-day simple moving average of $275.99 and a two-hundred day simple moving average of $298.87. McDonald's Corporation has a 52-week low of $260.96 and a 52-week high of $341.75. The firm has a market capitalization of $187.90 billion, a PE ratio of 21.80, a P/E/G ratio of 2.82 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping the consensus estimate of $2.74 by $0.09. The firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The business's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter last year, the company earned $2.67 earnings per share. Equities analysts forecast that McDonald's Corporation will post 12.86 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.8%. McDonald's's payout ratio is currently 61.34%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Weiss Ratings downgraded McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. JPMorgan Chase & Co. lowered their target price on McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a report on Monday, May 11th. Citigroup dropped their target price on McDonald's from $375.00 to $335.00 and set a "buy" rating on the stock in a research report on Wednesday, July 15th. Royal Bank Of Canada restated a "sector perform" rating on shares of McDonald's in a research note on Tuesday, June 23rd. Finally, KeyCorp reiterated an "overweight" rating on shares of McDonald's in a research note on Wednesday, July 15th. Fifteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, McDonald's currently has a consensus rating of "Moderate Buy" and a consensus target price of $334.32.

McDonald's News Roundup

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

• Positive Sentiment: McDonald’s announced a quarterly dividend of $1.86 per share, reinforcing its reputation as a steady income stock and highlighting continued cash generation. McDONALD'S ANNOUNCES QUARTERLY CASH DIVIDEND
• Positive Sentiment: BTIG Research kept a buy rating on McDonald’s and said the stock still offers meaningful upside, even after cutting its price target to $350 from $370. Benzinga
• Positive Sentiment: Recent consumer-focused coverage around McValue packs, online availability, and a new dipping sauce suggests McDonald’s is still leaning on value-driven promotions and menu innovation to drive traffic. Here’s what’s new at McDonald’s this week
• Neutral Sentiment: Media coverage highlighting McDonald’s new McValue packs and online ordering is more promotional than financial, so it may help awareness but does not yet prove a material sales lift. McDonald's McValue packs now available online. Here's how to score one
• Neutral Sentiment: Analysts and media continue to frame McDonald’s as a defensive dividend name, but that alone is not enough to offset broader concerns about consumer spending. These 4 Dividend Stocks Are Money-Printing Machines
• Negative Sentiment: New research indicates restaurant customers remain highly price sensitive despite lower gas prices, which is a warning sign for traffic and margins at McDonald’s. McDonald's (MCD) Faces Stubborn Price Sensitive Traffic Despite Lower Gas Prices
• Negative Sentiment: McDonald’s recently hit a new 52-week low, and commentary around the stock suggests investors are waiting for the August 4 earnings report before buying the dip. McDonald’s Just Hit a New 52-Week Low. Don’t Buy the Dip Until After August 4.
• Negative Sentiment: StockTwits-style coverage also points to McDonald’s trading near 52-week lows amid broader concerns about weakening consumer demand. Why Did PEGA, ISRG, MCD Stocks Plunge To 52-Week Lows Today?

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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