Focused Investors LLC Trims Holdings in McDonald's Corporation $MCD

Key Points

• Focused Investors LLC reduced its McDonald’s stake by 2.4% in the first quarter, selling 10,000 shares and leaving it with 407,300 shares valued at about $126.6 million.
• Insider selling has continued, with EVP Desiree Ralls-Morrison and insider Joseph M. Erlinger both trimming their holdings; insiders sold 11,307 shares worth about $3.26 million over the last 90 days.
• Analysts remain broadly constructive despite recent target cuts, with McDonald’s holding a consensus rating of “Moderate Buy” and an average price target of $336.26, while the stock recently traded around $279.

Focused Investors LLC trimmed its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 2.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 407,300 shares of the fast-food giant's stock after selling 10,000 shares during the quarter. McDonald's accounts for approximately 4.1% of Focused Investors LLC's investment portfolio, making the stock its 13th largest holding. Focused Investors LLC owned approximately 0.06% of McDonald's worth $126,585,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in the stock. Your Advocates Ltd. LLP purchased a new position in McDonald's in the 4th quarter worth about $27,000. Park Place Capital Corp lifted its holdings in McDonald's by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after buying an additional 45 shares in the last quarter. IFC & Insurance Marketing Inc. purchased a new stake in McDonald's in the 4th quarter valued at about $29,000. Abound Financial LLC purchased a new stake in McDonald's in the 4th quarter valued at about $30,000. Finally, DecisionPoint Financial LLC grew its stake in McDonald's by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock worth $31,000 after acquiring an additional 97 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at McDonald's

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president directly owned 6,268 shares in the company, valued at approximately $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 can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the business'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 transaction, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 11,307 shares of company stock worth $3,262,622 in the last ninety days. Insiders own 0.26% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts have recently commented on MCD shares. Barclays reduced 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 report on Friday, May 8th. Cfra upgraded McDonald's to a "buy" rating in a report on Friday, May 8th. KeyCorp dropped their price objective on McDonald's from $345.00 to $330.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. BTIG Research reissued a "buy" rating and issued a $370.00 price objective on shares of McDonald's in a research note on Thursday, May 7th. Finally, Royal Bank Of Canada reduced their price objective on McDonald's from $330.00 to $305.00 and set a "sector perform" rating on the stock in a report on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, McDonald's presently has a consensus rating of "Moderate Buy" and a consensus price target of $336.26.

McDonald's Price Performance

Shares of McDonald's stock opened at $279.00 on Monday. McDonald's Corporation has a 1 year low of $271.85 and a 1 year high of $341.75. The firm's 50-day moving average is $286.98 and its two-hundred day moving average is $305.82. The stock has a market cap of $198.23 billion, a price-to-earnings ratio of 23.00, a PEG ratio of 2.78 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating 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 during the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the previous year, the business posted $2.67 EPS. The company's quarterly revenue was up 9.4% compared to the same quarter last year. On average, equities analysts expect that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is 61.34%.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is reviving its original Fried Apple Pie for the first time since 1992, a nostalgia-driven menu move that could boost customer traffic, social buzz, and limited-time sales. McDonald’s (MCD) Brings Back Fried Apple Pie After More Than 30 Years
• Positive Sentiment: Recent analyst coverage highlighted McDonald’s value meals, menu innovation, and brand activations as helping lift same-store sales, with Australia cited as a key area of momentum. McDonald's Blends Value With Brand Activations: Is It Paying Off?
• Positive Sentiment: Seeking Alpha published a rating upgrade arguing McDonald’s “McValue” strategy has finally reached buy territory, reinforcing the case that the company’s value offerings are supporting demand. McDonald's (Mc)Value Finally Reaches Buy Territory (Rating Upgrade)
• Neutral Sentiment: Coverage around McDonald’s AI drive-thru plans suggests the company is still experimenting with automation to improve service and efficiency, but the near-term stock impact is unclear. McDonald’s AI drive-thru may take your next order
• Neutral Sentiment: Several articles about historic landmarks, Happy Meal toys, and food trivia are mostly brand-related publicity and are less likely to materially move the stock on their own.
• Negative Sentiment: Some recent commentary remains cautious, with one article arguing McDonald’s is still delivering but not enough to justify a buy, which may temper enthusiasm for the shares. McDonald's: Still Delivering, But Not Enough For A Buy

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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