Financial Solutions Advisory Group Inc. Acquires New Holdings in McDonald's Corporation $MCD

Key Points

• Financial Solutions Advisory Group acquired 4,020 McDonald’s shares worth approximately $1.25 million in the first quarter. Institutional investors collectively own 70.29% of the company, with several major funds also increasing their positions.
• McDonald’s reported quarterly EPS of $2.83, beating estimates by $0.09, while revenue rose 9.4% year over year to $6.52 billion. The company declared a quarterly dividend of $1.86 per share, representing a 2.7% yield.
• MCD shares opened at $270.83, well below their 52-week high of $341.75. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $331.92, although some firms recently lowered their targets amid technical weakness and concerns about softer sales.

Financial Solutions Advisory Group Inc. bought a new stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) in the 1st quarter, according to its most recent 13F filing with the SEC. The firm bought 4,020 shares of the fast-food giant's stock, valued at approximately $1,249,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in shares of McDonald's in the fourth quarter valued at approximately $2,890,438,000. Diamant Asset Management Inc. increased its stake in shares of McDonald's by 30,979.0% during the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock worth $806,917,000 after purchasing an additional 2,587,986 shares in the last quarter. J. Stern & Co. LLP raised its position in shares of McDonald's by 9,867.5% during the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock worth $776,608,000 after purchasing an additional 2,515,515 shares during the last quarter. Viking Global Investors LP raised its position in shares of McDonald's by 171.7% during the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock worth $913,157,000 after purchasing an additional 1,974,998 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its stake 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 valued at $948,779,000 after buying an additional 1,033,041 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Stock Performance

MCD stock opened at $270.83 on Friday. McDonald's Corporation has a one year low of $260.96 and a one year high of $341.75. The stock has a market capitalization of $192.43 billion, a P/E ratio of 22.33, a PEG ratio of 2.91 and a beta of 0.41. The company has a 50 day moving average price of $274.88 and a two-hundred day moving average price of $297.69.

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

McDonald's Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be given a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald's's dividend payout ratio is 61.34%.

Wall Street Analysts Forecast Growth

MCD has been the topic of a number of analyst reports. Barclays lowered their target price on McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. JPMorgan Chase & Co. cut their price target on McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a report on Monday, May 11th. Erste Group Bank lowered McDonald's from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Mizuho dropped their price objective on McDonald's from $300.00 to $290.00 and set a "neutral" rating for the company in a research report on Friday. Finally, Royal Bank Of Canada reissued a "sector perform" rating on shares of McDonald's in a research note on Tuesday. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $331.92.

Insider Transactions at McDonald's

In other news, 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 transaction of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the 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 transaction, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 8,348 shares of company stock worth $2,355,634. 0.26% of the stock is owned by corporate insiders.

Key McDonald's News

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

• Positive Sentiment: Unusually heavy call-option activity suggests some traders are positioning for upside. Investors purchased 32,245 calls, approximately 45% above the average volume of 22,241 calls.
• Positive Sentiment: Technical analyst Jay Woods said McDonald’s chart is beginning to form a potential buy signal, which could attract bargain hunters after the stock’s recent correction. CNBC article
• Positive Sentiment: McDonald’s continues to appeal to income-focused investors after declaring a quarterly dividend of $1.86 per share. Analysts also maintain a consensus “moderate buy” recommendation. Dividend strength and softer sales expectations Consensus recommendation
• Neutral Sentiment: Investors are focused on value meals, menu innovation, digital promotions, same-store sales, margins and management’s outlook when McDonald’s reports second-quarter results. Q2 earnings factors
• Negative Sentiment: Mizuho lowered its price target from $300 to $290 and assigned a “neutral” rating, signaling limited conviction despite implied upside from current levels.
• Negative Sentiment: The stock has remained below its 200-week moving average for the longest stretch since 2003, highlighting persistent technical weakness. Barchart technical analysis
• Negative Sentiment: Analysts expect softer sales and weaker earnings, particularly as lower-income consumers remain pressured. That caution could limit gains before the earnings release. McDonald’s stock ahead of August 4 earnings

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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