Franklin Street Advisors Inc. NC Grows Stock Position in McDonald's Corporation $MCD

Key Points

• Franklin Street Advisors Inc. increased its stake in McDonald's Corporation by 8.7%, owning 18,456 shares worth approximately $5.39 million at the end of the second quarter.
• Several other institutional investors also raised their positions in McDonald's, with a total of 70.29% of the stock currently owned by institutional investors and hedge funds.
• McDonald's recently announced a quarterly dividend of $1.77 per share, reflecting an annualized dividend of $7.08 and a yield of 2.4%.

Franklin Street Advisors Inc. NC lifted its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 8.7% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 18,456 shares of the fast-food giant's stock after purchasing an additional 1,471 shares during the period. Franklin Street Advisors Inc. NC's holdings in McDonald's were worth $5,392,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the business. Barrett & Company Inc. raised its stake in McDonald's by 26.1% in the second quarter. Barrett & Company Inc. now owns 888 shares of the fast-food giant's stock valued at $260,000 after buying an additional 184 shares in the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management raised its stake in McDonald's by 1.3% in the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 17,325 shares of the fast-food giant's stock valued at $5,062,000 after buying an additional 225 shares in the last quarter. Gray Private Wealth LLC raised its stake in McDonald's by 4.6% in the second quarter. Gray Private Wealth LLC now owns 2,284 shares of the fast-food giant's stock valued at $667,000 after buying an additional 100 shares in the last quarter. Atwater Malick LLC raised its stake in McDonald's by 0.3% in the second quarter. Atwater Malick LLC now owns 39,298 shares of the fast-food giant's stock valued at $11,482,000 after buying an additional 117 shares in the last quarter. Finally, Synergy Asset Management LLC raised its stake in McDonald's by 40.2% in the second quarter. Synergy Asset Management LLC now owns 4,573 shares of the fast-food giant's stock valued at $1,336,000 after buying an additional 1,312 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, EVP Desiree Ralls-Morrison sold 2,487 shares of the business's stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total value of $770,970.00. Following the transaction, the executive vice president owned 8,754 shares in the company, valued at $2,713,740. The trade was a 22.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Joseph M. Erlinger sold 939 shares of the business's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total value of $281,221.11. Following the completion of the transaction, the insider owned 9,283 shares in the company, valued at $2,780,165.67. This trade represents a 9.19% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 7,402 shares of company stock worth $2,273,407. Insiders own 0.25% of the company's stock.

Analysts Set New Price Targets

A number of research firms have weighed in on MCD. Barclays raised their price target on McDonald's from $355.00 to $360.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. JPMorgan Chase & Co. raised their price target on McDonald's from $305.00 to $310.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. BMO Capital Markets lifted their target price on McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research report on Thursday, September 4th. Guggenheim reiterated a "neutral" rating on shares of McDonald's in a research report on Friday, August 8th. Finally, Morgan Stanley lifted their target price on McDonald's from $324.00 to $326.00 and gave the stock an "equal weight" rating in a research report on Monday, July 14th. Twelve equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, McDonald's currently has an average rating of "Hold" and an average price target of $325.86.

McDonald's Stock Up 0.3%

Shares of MCD stock opened at $300.72 on Friday. The stock has a market capitalization of $214.59 billion, a PE ratio of 25.77, a price-to-earnings-growth ratio of 3.05 and a beta of 0.50. McDonald's Corporation has a 52-week low of $276.53 and a 52-week high of $326.32. The stock's 50-day moving average price is $306.93 and its 200 day moving average price is $306.17.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.15 by $0.04. The firm had revenue of $6.84 billion for the quarter, compared to analysts' expectations of $6.68 billion. McDonald's had a negative return on equity of 225.52% and a net margin of 32.21%.The firm's revenue for the quarter was up 5.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.97 EPS. Analysts expect that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were given a $1.77 dividend. This represents a $7.08 annualized dividend and a yield of 2.4%. The ex-dividend date was Tuesday, September 2nd. McDonald's's payout ratio is 60.67%.

McDonald's Company Profile

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.

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