Franklin Resources Inc. Boosts Stake in McDonald's Corporation $MCD

Key Points

• Franklin Resources increased its stake in McDonald's by 36.6% in Q3, buying an additional 1,179,244 shares to hold 4,396,837 shares (about 0.62% of the company) valued at roughly $1.336 billion.
• McDonald's beat analyst expectations for the quarter with EPS of $3.12 versus $3.05 and revenue of $7.01 billion (up 9.7% YoY), and declared a quarterly dividend of $1.86 ($7.44 annualized, ~2.3% yield).
• Insider activity: CEO Christopher J. Kempczinski sold 26,276 shares for about $8.76 million (reducing his holdings by 53.43%); insiders now own only ~0.25% of McDonald's while institutions hold ~70.3%.

Franklin Resources Inc. boosted its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 36.6% during the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 4,396,837 shares of the fast-food giant's stock after acquiring an additional 1,179,244 shares during the quarter. Franklin Resources Inc. owned 0.62% of McDonald's worth $1,336,155,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. Evergreen Private Wealth LLC grew its holdings in shares of McDonald's by 162.5% during the third quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant's stock worth $26,000 after purchasing an additional 52 shares in the last quarter. Financial Gravity Companies Inc. bought a new position in shares of McDonald's in the second quarter worth approximately $29,000. Traub Capital Management LLC purchased a new stake in McDonald's in the second quarter valued at approximately $29,000. Davis Capital Management purchased a new stake in McDonald's in the third quarter valued at approximately $37,000. Finally, Miller Wealth Advisors LLC bought a new stake in McDonald's during the third quarter valued at approximately $38,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

McDonald's Price Performance

Shares of NYSE MCD opened at $327.74 on Wednesday. The stock has a market capitalization of $232.83 billion, a P/E ratio of 27.43, a PEG ratio of 2.94 and a beta of 0.51. McDonald's Corporation has a one year low of $283.47 and a one year high of $341.75. The firm's 50 day simple moving average is $319.06 and its two-hundred day simple moving average is $311.25.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share for the quarter, topping 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 firm had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.81 billion. During the same period in the previous year, the business posted $2.83 EPS. The business's quarterly revenue was up 9.7% on a year-over-year basis. As a group, equities analysts expect that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 17th. Shareholders of record on Tuesday, March 3rd will be paid a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, March 3rd. This represents a $7.44 annualized dividend and a yield of 2.3%. McDonald's's payout ratio is currently 62.26%.

Insider Buying and Selling at McDonald's

In other McDonald's news, CEO Christopher J. Kempczinski sold 26,276 shares of the company's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $333.54, for a total transaction of $8,764,097.04. Following the completion of the sale, the chief executive officer directly owned 22,900 shares in the company, valued at $7,638,066. This represents a 53.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,486 shares of the firm's stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $320.00, for a total value of $795,520.00. Following the transaction, the executive vice president directly owned 6,268 shares in the company, valued at $2,005,760. This trade represents a 28.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 71,517 shares of company stock valued at $23,655,503. 0.25% of the stock is currently owned by insiders.

Key Stories Impacting McDonald's

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

• Positive Sentiment: Loyalty momentum: McDonald’s loyalty program is near 210 million active users across 70+ markets, improving engagement and providing a direct lever to drive repeat sales and targeted promotions as it targets 250M members by 2027. Will McDonald's 210M Loyalty Users Fuel Long-Term Growth?
• Positive Sentiment: Analyst support: A published price-target raise to $385 signals at least one analyst’s bullish view on upside vs. current levels, which can support sentiment and buy-side interest. McDonald's NYSE: MCD Price Target Raised to $385.00
• Positive Sentiment: New product and partner activations: Recent consumer-facing moves — a spring menu featuring Cadbury items and a Crocs Happy Meal promotion — are small-but-visible initiatives that can boost traffic, social buzz and limited-time sales. McDonald’s just unveiled its new spring menu — Cadbury products will send fans wild McDonald's rolls out Crocs Happy Meal. What comes inside?
• Positive Sentiment: Brand & marketing traction: The Big Arch burger rollout and CEO-led taste-test moments have generated viral attention and sparked playful competitor responses — a sign of strong brand engagement that can translate into short-term traffic lifts. McDonald's Big Arch Burger Tests Brand Power And Rich Valuation McDonald's CEO's Big Arch taste test sparked a war of fast-food copycats
• Neutral Sentiment: Valuation debate: Recent analysis questions whether the current share price fully reflects McDonald’s fundamentals — pointing to strong brand and growth drivers but mixed valuation signals, which may temper buying conviction. Is McDonald's (MCD) Share Price Justified After Recent Gains And Mixed Valuation Signals
• Neutral Sentiment: Product-level chatter: Lifestyle and menu stories (sauce comparisons, Filet‑O‑Fish nostalgia, rare-store features) keep the brand top-of-mind but are unlikely to move fundamentals materially. McDonald's Big Mac Sauce Vs Big Arch Sauce: Here's The Difference
• Negative Sentiment: Macro/operational risk: Analysis highlights exposure to high oil prices (logistics, delivery partner costs, packaging inputs and consumer pump sensitivity). A sustained spike in fuel could pressure margins, delivery economics and low-income consumer traffic. McDonald’s Real Risk From $150 Oil Has Nothing to Do With Costs

Analyst Upgrades and Downgrades

MCD has been the subject of a number of research reports. Robert W. Baird set a $335.00 price target on shares of McDonald's in a research note on Thursday, February 12th. Citigroup raised their price objective on shares of McDonald's from $371.00 to $375.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. Mizuho lifted their price objective on shares of McDonald's from $300.00 to $325.00 and gave the stock a "neutral" rating in a report on Friday, February 6th. Truist Financial upped their target price on shares of McDonald's from $356.00 to $370.00 and gave the stock a "buy" rating in a research report on Thursday, February 12th. Finally, KeyCorp increased their target price on McDonald's from $340.00 to $354.00 and gave the company an "overweight" rating in a research note on Tuesday, March 3rd. Seventeen equities 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 company. According to data from MarketBeat.com, McDonald's currently has an average rating of "Hold" and a consensus target price of $339.69.

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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