Focused Investors LLC Has $99.42 Million Stake in McDonald's Corporation $MCD

Key Points

• Focused Investors LLC reduced its McDonald’s stake by 9.7% in the second quarter, selling 39,500 shares and retaining 367,800 shares worth approximately $99.42 million. Institutional investors collectively own 70.29% of MCD.
• McDonald’s reported quarterly EPS of $3.38, beating estimates, while revenue of $7.10 billion fell slightly short of expectations; revenue still increased 3.7% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $325.44.
• The company declared a quarterly dividend of $1.86 per share, equivalent to $7.44 annually and a 2.7% yield. Shares opened at $272.61, near the lower end of their 12-month range.

Focused Investors LLC reduced its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 9.7% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 367,800 shares of the fast-food giant's stock after selling 39,500 shares during the quarter. McDonald's comprises about 3.4% of Focused Investors LLC's portfolio, making the stock its 13th biggest position. Focused Investors LLC owned 0.05% of McDonald's worth $99,420,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also modified their holdings of MCD. Norges Bank acquired a new position in McDonald's during the 4th quarter worth $2,890,438,000. Diamant Asset Management Inc. boosted its position in McDonald's by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock valued at $806,917,000 after buying an additional 2,587,986 shares during the last quarter. J. Stern & Co. LLP increased its stake in shares of McDonald's by 9,867.5% in the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock valued at $776,608,000 after buying an additional 2,515,515 shares during the period. Viking Global Investors LP increased its stake in shares of 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. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of McDonald's by 49.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant's stock worth $948,779,000 after acquiring an additional 1,033,041 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

Insider Buying and Selling

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred 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 sale, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the transaction, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,348 shares of company stock worth $2,355,634 over the last quarter. 0.26% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. BTIG Research reaffirmed a "buy" rating and set a $350.00 price target on shares of McDonald's in a research note on Wednesday, August 5th. UBS Group set a $305.00 price objective on McDonald's in a research report on Wednesday, August 5th. Weiss Ratings cut McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. Citigroup upped their target price on shares of McDonald's from $335.00 to $345.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $295.00 target price on shares of McDonald's in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $325.44.

McDonald's Stock Up 0.1%

Shares of McDonald's stock opened at $272.61 on Friday. The business has a fifty day simple moving average of $273.81 and a 200 day simple moving average of $295.28. The stock has a market cap of $192.91 billion, a PE ratio of 22.15, a price-to-earnings-growth ratio of 3.05 and a beta of 0.41. McDonald's Corporation has a 12 month low of $260.96 and a 12 month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.06. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The firm had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same quarter in the prior year, the firm posted $3.19 earnings per share. The company's quarterly revenue was up 3.7% on a year-over-year basis. Analysts expect that McDonald's Corporation will post 12.88 EPS for the current fiscal year.

McDonald's Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be paid a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. McDonald's's dividend payout ratio is 60.44%.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers
• Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers
• Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys
• Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call
• Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground
• Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered
• Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report

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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