First Financial Bankshares Inc Raises Position in McDonald's Corporation $MCD

Key Points

• First Financial Bankshares increased its McDonald’s stake by 1.5% in the fourth quarter, adding 4,576 shares and bringing its total holding to 319,205 shares worth about $97.6 million.
• McDonald’s reported better-than-expected quarterly earnings of $2.83 per share on revenue of $6.52 billion, with revenue up 9.4% year over year.
• The company declared a quarterly dividend of $1.86 per share, while analyst sentiment remains constructive with a consensus rating of Moderate Buy and an average price target of $336.26.

First Financial Bankshares Inc raised its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 1.5% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 319,205 shares of the fast-food giant's stock after buying an additional 4,576 shares during the period. McDonald's makes up approximately 2.0% of First Financial Bankshares Inc's portfolio, making the stock its 11th largest position. First Financial Bankshares Inc's holdings in McDonald's were worth $97,559,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in MCD. Norges Bank purchased a new position in McDonald's in the 4th quarter valued at approximately $2,890,438,000. Viking Global Investors LP boosted its position in McDonald's by 171.7% in the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock valued at $913,157,000 after buying an additional 1,974,998 shares during the period. Franklin Resources Inc. boosted its position in 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 during the period. Arrowstreet Capital Limited Partnership boosted its position in McDonald's by 111.3% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,071,296 shares of the fast-food giant's stock valued at $629,446,000 after buying an additional 1,090,849 shares during the period. Finally, Marshall Wace LLP boosted its position in McDonald's by 927.5% in the 3rd quarter. Marshall Wace LLP now owns 827,547 shares of the fast-food giant's stock valued at $251,483,000 after buying an additional 927,547 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Insiders Place Their Bets

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business'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 completion of the sale, the executive vice president directly owned 6,268 shares of the company's stock, 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 business's stock in a transaction on 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 sale, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 11,307 shares of company stock valued at $3,262,622. 0.26% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several brokerages have commented on MCD. Robert W. Baird set a $305.00 price target on shares of McDonald's in a research report on Thursday, May 7th. Citigroup raised their price target on shares of McDonald's from $371.00 to $375.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. Guggenheim reduced their price objective on shares of McDonald's from $325.00 to $320.00 and set a "neutral" rating on the stock in a report on Friday, February 13th. Truist Financial raised their price objective on shares of McDonald's from $356.00 to $370.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Finally, Weiss Ratings lowered shares of McDonald's from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, May 29th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $336.26.

McDonald's Trading Up 0.9%

Shares of MCD opened at $285.02 on Friday. McDonald's Corporation has a twelve month low of $271.85 and a twelve month high of $341.75. The firm's fifty day simple moving average is $289.83 and its 200-day simple moving average is $306.90. The firm has a market capitalization of $202.51 billion, a price-to-earnings ratio of 23.50, a PEG ratio of 2.81 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating analysts' consensus estimates of $2.74 by $0.09. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same period last year, the business earned $2.67 EPS. The company's revenue was up 9.4% on a year-over-year basis. On average, analysts predict that McDonald's Corporation will post 12.93 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd will be issued a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is presently 61.34%.

Key Stories Impacting McDonald's

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

• Positive Sentiment: McDonald’s new FIFA World Cup meal promotions, collectible cups, and Squishmallows tie-ins could lift traffic and drive incremental sales through limited-time demand. McDonald's FIFA World Cup meals with Squishmallows and 9 collectible cups are here
• Positive Sentiment: McDonald’s is testing AI-powered drive-thru systems, which could improve service speed, reduce labor pressure, and support margins if the rollout works well. McDonald’s testing AI drive-thru system at select US locations
• Positive Sentiment: Analyst sentiment remains constructive, with coverage pointing to a “Moderate Buy” consensus on MCD. McDonald's Corporation NYSE: MCD Given Consensus Rating of "Moderate Buy" by Analysts
• Neutral Sentiment: McDonald’s is receiving additional attention from commentary framing it as a long-term buy-on-weakness name, but this is more sentiment than a fresh fundamental catalyst. Jim Cramer Discusses a Strategic Buying Plan to Build a Great Cost Basis in McDonald’s
• Negative Sentiment: An insider sale by executive Joseph M. Erlinger may weigh on sentiment, even though insider sales do not always indicate a weaker outlook. Joseph M. Erlinger insider sale
• Negative Sentiment: Recent analysis highlighted that MCD shares have fallen over the past few months amid cost pressures, weaker low-income demand, and slower sales growth, which remains a key overhang for the stock. McDonald's Stock Slides 13% in 3 Months: Buy the Dip or Stay Away?
• Negative Sentiment: There is also some concern around customer frustration with drive-thru changes and workplace safety scrutiny, which could hurt brand perception if the issues persist. McDonald's quietly makes a major change to its drive thru and customers are furious

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.