First Manhattan CO. LLC. Sells 12,473 Shares of McDonald's Corporation $MCD

Key Points

• First Manhattan CO. LLC reduced its McDonald's stake by 2.2% in the fourth quarter, selling 12,473 shares and still holding 564,683 shares worth about $172.6 million.
• McDonald's reported better-than-expected quarterly results, with EPS of $2.83 versus estimates of $2.74 and revenue of $6.52 billion, up 9.4% year over year.
• Analysts remain mixed but broadly positive, with the stock carrying a Moderate Buy consensus and an average price target of $336.26; meanwhile, insiders have also sold shares recently.

First Manhattan CO. LLC. lessened its position in McDonald's Corporation (NYSE:MCD - Free Report) by 2.2% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 564,683 shares of the fast-food giant's stock after selling 12,473 shares during the period. First Manhattan CO. LLC. owned 0.08% of McDonald's worth $172,584,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in MCD. Brighton Jones LLC boosted its stake in shares of McDonald's by 21.6% during the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock valued at $2,692,000 after purchasing an additional 1,649 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in shares of McDonald's by 2.8% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock valued at $563,000 after purchasing an additional 52 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in shares of McDonald's by 11.4% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant's stock valued at $589,000 after purchasing an additional 206 shares in the last quarter. United Bank boosted its stake in shares of McDonald's by 6.0% during the 2nd quarter. United Bank now owns 8,102 shares of the fast-food giant's stock valued at $2,367,000 after purchasing an additional 459 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its stake in shares of McDonald's by 2.5% during the 2nd quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant's stock valued at $3,780,000 after purchasing an additional 312 shares in the last quarter. Institutional investors own 70.29% of the company's stock.

McDonald's Price Performance

NYSE:MCD opened at $284.16 on Thursday. McDonald's Corporation has a one year low of $271.85 and a one year high of $341.75. The company's 50-day simple moving average is $288.07 and its 200 day simple moving average is $306.22. The firm has a market capitalization of $201.90 billion, a P/E ratio of 23.43, a PEG ratio of 2.87 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. 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 quarter in the previous year, the firm posted $2.67 earnings per share. McDonald's's quarterly revenue was up 9.4% on a year-over-year basis. On average, equities research analysts expect that McDonald's Corporation will post 12.93 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were paid a dividend of $1.86 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.6%. McDonald's's payout ratio is presently 61.34%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. Royal Bank Of Canada cut their target price on shares of McDonald's from $330.00 to $305.00 and set a "sector perform" rating on the stock in a research note on Friday, May 8th. Tigress Financial lifted their target price on shares of McDonald's from $360.00 to $385.00 and gave the company a "buy" rating in a research note on Friday, March 6th. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a research note on Friday, June 12th. Barclays cut their target price on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Finally, Rothschild & Co Redburn raised shares of McDonald's from a "sell" rating to a "neutral" rating and lifted their target price for the company from $260.00 to $306.00 in a research note on Thursday, April 23rd. Sixteen investment 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's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $336.26.

Insider Activity

In related news, insider Joseph M. Erlinger sold 5,252 shares of the business'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 sale, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 transaction of $769,108.68. Following the sale, 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 position. The disclosure for this sale is available in the SEC filing. Insiders have sold 11,307 shares of company stock worth $3,262,622 in the last three months. 0.26% of the stock is currently owned by insiders.

Key McDonald's News

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

• Positive Sentiment: McDonald’s is bringing back its fried apple pie after more than 30 years, a nostalgic, limited-time menu move that could support traffic and generate buzz with customers. AP News article
• Positive Sentiment: Other reports also note McDonald’s has been winning with value-oriented diners, which may help it hold up better than midtier restaurant chains as consumers trade down or seek familiar brands. Yahoo Finance article
• Neutral Sentiment: Coverage of McDonald’s reviving classic menu items, updating drive-thrus, and rebuilding older locations is mostly brand/operations news, with limited immediate impact on the stock. TheStreet article
• Neutral Sentiment: A Zacks note pointed out that MCD recently fell more than the broader market, but it did not identify a major new catalyst beyond the stock’s recent weakness. Zacks article
• Negative Sentiment: The biggest headwind is the market’s concern that restaurant spending is fragmenting, which could pressure midtier operators and keep sentiment cautious around consumer discretionary names like McDonald’s. Yahoo Finance article

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.

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