Fluent Financial LLC Buys New Shares in McDonald's Corporation $MCD

Key Points

• Fluent Financial LLC purchased 4,389 McDonald’s shares during the second quarter, valued at approximately $1.19 million. Institutional investors collectively own 70.29% of MCD.
• McDonald’s reported quarterly EPS of $3.38, beating estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion but fell slightly short of forecasts.
• Analyst sentiment remains moderately bullish, with a consensus price target of $325.44, but concerns persist over weak U.S. execution, intensifying competition, delayed restaurant expansion, and recent insider selling.

Fluent Financial LLC bought a new position in McDonald's Corporation (NYSE:MCD - Free Report) during the second quarter, according to the company in its most recent filing with the SEC. The firm bought 4,389 shares of the fast-food giant's stock, valued at approximately $1,186,000.

Several other hedge funds have also added to or reduced their stakes in MCD. Vanguard Group Inc. grew its stake in shares of McDonald's by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock valued at $22,112,675,000 after buying an additional 703,458 shares during the last quarter. State Street Corp lifted its stake in shares of McDonald's by 2.7% in the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant's stock valued at $10,997,789,000 after acquiring an additional 959,140 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of McDonald's by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock valued at $5,195,965,000 after acquiring an additional 76,090 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of McDonald's by 3.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant's stock valued at $2,895,768,000 after acquiring an additional 277,617 shares during the last quarter. Finally, Norges Bank purchased a new stake in McDonald's during the 4th quarter valued at about $2,890,438,000. 70.29% of the stock is owned by institutional investors.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: Freedom Capital upgraded McDonald’s (MCD) from “hold” to “strong-buy,” while BTIG reiterated its “buy” rating. These calls suggest some analysts view the recent selloff as excessive and expect a recovery. McDonald’s analyst upgrade
• Positive Sentiment: McDonald’s remains attractive to income-focused investors because of its long record of dividend payments. Its latest quarterly earnings also exceeded consensus expectations, and global markets continue to provide support. McDonald’s dividend history
• Neutral Sentiment: Forecast coverage is mixed. Morgan Stanley lowered its price target to $319, while RBC and Robert W. Baird issued pessimistic outlooks; a separate forecast highlighted potential upside from McDonald’s loyalty scale and the faster-than-expected rollout of its beverage platform. Morgan Stanley lowers McDonald’s price target
• Negative Sentiment: The main issue is weak U.S. performance. Management acknowledged an execution problem involving the value menu, digital offers, restaurant workload, and marketing—not a flawed overall strategy. Customers continue to demand better value, raising concerns about traffic and near-term sales growth. McDonald’s Q2 earnings call
• Negative Sentiment: Competitive pressure is increasing, with Burger King reporting stronger U.S. sales momentum as McDonald’s growth falters. Wendy’s weak traffic and withdrawn outlook add to broader investor concern about value-oriented fast-food demand. Burger King gains against McDonald’s
• Negative Sentiment: McDonald’s has pushed back its goal of reaching 50,000 restaurants, suggesting that economic conditions are slowing expansion. The end of its Krispy Kreme doughnut partnership also removes a recent menu-growth initiative. McDonald’s expansion plans

Analysts Set New Price Targets

A number of equities analysts have commented on the company. BTIG Research reaffirmed a "buy" rating and issued a $350.00 price target on shares of McDonald's in a research note on Wednesday, August 5th. 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 note on Friday, July 31st. 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 report on Friday, May 8th. Wells Fargo & Company decreased their target price on shares of McDonald's from $320.00 to $300.00 and set an "overweight" rating on the stock in a research note on Thursday, July 16th. Finally, TD Cowen reiterated a "hold" rating on shares of McDonald's in a report on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, McDonald's presently has a consensus rating of "Moderate Buy" and a consensus target price of $325.44.

McDonald's Price Performance

Shares of NYSE:MCD opened at $274.39 on Monday. McDonald's Corporation has a 1 year low of $260.96 and a 1 year high of $341.75. The company has a market cap of $194.96 billion, a PE ratio of 22.29, a P/E/G ratio of 3.07 and a beta of 0.41. The stock's 50-day moving average is $274.03 and its 200 day moving average is $296.35.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. McDonald's had a negative return on equity of 512.80% and a net margin of 31.72%.The business had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same quarter in the prior year, the company posted $3.19 EPS. McDonald's's quarterly revenue was up 3.7% compared to the same quarter last year. Analysts expect that McDonald's Corporation will post 12.88 EPS for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be paid 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 dividend yield of 2.7%. McDonald's's payout ratio is 60.44%.

Insider Buying and Selling

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This represents 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 through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction on 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 sale, the insider directly owned 7,734 shares of the company's stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 8,348 shares of company stock valued at $2,355,634. 0.26% of the stock is owned by corporate insiders.

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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