Franklin Street Advisors Inc. NC Decreases Holdings in McDonald's Corporation $MCD

Key Points

• Franklin Street Advisors cut its McDonald’s stake by 66.3% in the second quarter, selling 20,874 shares and retaining 10,587 shares valued at approximately $2.86 million. Institutional investors still own 70.29% of the company.
• McDonald’s reported quarterly earnings of $3.38 per share, beating estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion but slightly missed expectations. The company declared a quarterly dividend of $1.86 per share, representing a 2.7% yield.
• Analyst sentiment remains broadly positive but mixed, with a “Moderate Buy” consensus and an average price target of $325.44; recent targets ranged from $285 to $350. Company insiders also sold 8,348 shares worth about $2.36 million over the past 90 days.

Franklin Street Advisors Inc. NC decreased its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 66.3% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 10,587 shares of the fast-food giant's stock after selling 20,874 shares during the period. Franklin Street Advisors Inc. NC's holdings in McDonald's were worth $2,862,000 as of its most recent filing with the SEC.

Other hedge funds have also added to or reduced their stakes in the company. Hamilton Point Investment Advisors LLC raised its holdings in shares of McDonald's by 1.8% in the 4th quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant's stock worth $535,000 after purchasing an additional 31 shares during the period. Encompass More Asset Management grew its holdings in McDonald's by 1.5% during the fourth quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant's stock valued at $648,000 after purchasing an additional 32 shares during the period. Richmond Investment Services LLC grew its holdings in McDonald's by 1.4% during the fourth quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant's stock valued at $696,000 after purchasing an additional 32 shares during the period. Papamarkou Wellner Asset Management inc. increased its position in McDonald's by 0.4% in the fourth quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant's stock worth $2,692,000 after buying an additional 32 shares during the last quarter. Finally, Physician Wealth Advisors Inc. increased its position in McDonald's by 1.6% in the fourth quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock worth $642,000 after buying an additional 33 shares during the last quarter. Institutional investors own 70.29% of the company's stock.

Insider Transactions at McDonald's

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction 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 represents a 30.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction dated 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 completion of the sale, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 8,348 shares of company stock valued at $2,355,634 in the last ninety days. Insiders own 0.26% of the company's stock.

McDonald's Price Performance

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 stock's fifty day moving average price is $274.03 and its two-hundred day moving average price is $296.35. The company has a market cap of $194.96 billion, a P/E ratio of 22.29, a P/E/G ratio of 3.07 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly 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 512.80% and a net margin of 31.72%.The company had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.13 billion. During the same period in the previous year, the business earned $3.19 earnings per share. The firm's quarterly revenue was up 3.7% compared to the same quarter last year. On average, analysts expect that McDonald's Corporation will post 12.88 earnings per share for the current fiscal year.

McDonald's Announces Dividend

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

Analyst Ratings Changes

MCD has been the topic of a number of recent research reports. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a research report on Tuesday, August 4th. Weiss Ratings lowered McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. Robert W. Baird decreased their price objective on McDonald's from $305.00 to $285.00 and set a "neutral" rating for the company in a report on Wednesday, August 5th. Morgan Stanley lowered their price objective on McDonald's from $322.00 to $319.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 5th. Finally, BTIG Research reaffirmed a "buy" rating and set a $350.00 price objective on shares of McDonald's in a report on Wednesday, August 5th. One 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 data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $325.44.

Trending Headlines about 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

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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