Focused Investors LLC Has $127.54 Million Holdings in McDonald's Corporation $MCD

Key Points

• Focused Investors LLC trimmed its stake in McDonald's by 2.7% to 417,300 shares, leaving a holding valued at about $127.54 million (roughly 0.06% of McDonald's and 4.1% of the fund, its 15th largest position).
• McDonald's beat quarterly expectations with $3.12 EPS vs. $3.05 estimated and $7.01 billion in revenue (up 9.7% year-over-year), and it recently paid a quarterly dividend of $1.86 ($7.44 annualized, ~2.4% yield).
• Significant insider selling has occurred recently—CEO Christopher J. Kempczinski sold 26,277 shares (~$8.7M) and insiders sold 71,657 shares (~$23.7M) over the last 90 days—while institutional investors own about 70.3% of the stock.

Focused Investors LLC reduced its position in McDonald's Corporation (NYSE:MCD - Free Report) by 2.7% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 417,300 shares of the fast-food giant's stock after selling 11,550 shares during the period. McDonald's comprises about 4.1% of Focused Investors LLC's holdings, making the stock its 15th largest position. Focused Investors LLC owned approximately 0.06% of McDonald's worth $127,539,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Global X Japan Co. Ltd. raised its holdings in shares of McDonald's by 236.7% during the 3rd quarter. Global X Japan Co. Ltd. now owns 6,502 shares of the fast-food giant's stock valued at $1,976,000 after purchasing an additional 4,571 shares in the last quarter. D.A. Davidson & CO. raised its holdings in shares of McDonald's by 2.7% during the 3rd quarter. D.A. Davidson & CO. now owns 143,492 shares of the fast-food giant's stock valued at $43,606,000 after purchasing an additional 3,774 shares in the last quarter. Regent Peak Wealth Advisors LLC bought a new position in shares of McDonald's during the 3rd quarter valued at $1,120,000. Synergy Asset Management LLC raised its holdings in shares of McDonald's by 317.2% during the 3rd quarter. Synergy Asset Management LLC now owns 19,079 shares of the fast-food giant's stock valued at $5,691,000 after purchasing an additional 14,506 shares in the last quarter. Finally, National Pension Service raised its holdings in shares of McDonald's by 2.5% during the 3rd quarter. National Pension Service now owns 1,533,015 shares of the fast-food giant's stock valued at $465,868,000 after purchasing an additional 37,744 shares in the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

McDonald's Trading Up 0.1%

NYSE:MCD opened at $311.78 on Monday. McDonald's Corporation has a 1 year low of $283.47 and a 1 year high of $341.75. The firm's fifty day simple moving average is $319.62 and its 200 day simple moving average is $311.90. The firm has a market capitalization of $221.63 billion, a PE ratio of 26.09, a PEG ratio of 2.81 and a beta of 0.53.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.05 by $0.07. McDonald's had a net margin of 31.85% and a negative return on equity of 343.90%. The business had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.81 billion. During the same period last year, the business posted $2.83 EPS. McDonald's's revenue was up 9.7% compared to the same quarter last year. As a group, analysts anticipate that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were paid a $1.86 dividend. The ex-dividend date was Tuesday, March 3rd. This represents a $7.44 dividend on an annualized basis and a yield of 2.4%. McDonald's's dividend payout ratio (DPR) is presently 62.26%.

Insider Activity

In related news, CEO Christopher J. Kempczinski sold 26,277 shares of the firm's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $331.35, for a total value of $8,706,883.95. Following the transaction, the chief executive officer directly owned 22,900 shares in the company, valued at approximately $7,587,915. This trade represents a 53.43% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Joseph M. Erlinger sold 2,626 shares of the firm's stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $325.25, for a total transaction of $854,106.50. Following the completion of the transaction, the insider owned 5,398 shares in the company, valued at $1,755,699.50. The trade was a 32.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 71,657 shares of company stock valued at $23,723,307. 0.26% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

MCD has been the topic of a number of recent research reports. Jefferies Financial Group raised their price target on shares of McDonald's from $360.00 to $375.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Mizuho raised their price target on shares of McDonald's from $300.00 to $325.00 and gave the company a "neutral" rating in a report on Friday, February 6th. JPMorgan Chase & Co. raised their price target on shares of McDonald's from $305.00 to $325.00 and gave the company an "overweight" rating in a report on Tuesday, February 24th. Truist Financial raised their price target 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, TD Cowen restated a "hold" rating and set a $320.00 price target on shares of McDonald's in a report on Thursday, February 12th. Seventeen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $339.69.

About McDonald's

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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