Graham Capital Management L.P. Buys 49,066 Shares of McDonald's Corporation $MCD

Key Points

• Graham Capital Management boosted its McDonald’s stake by 249.4% in the fourth quarter, buying 49,066 additional shares and lifting its total holding to 68,737 shares valued at about $21.0 million.
• Other institutional investors also added to or initiated positions in McDonald’s, and institutions now own 70.29% of the company’s stock, underscoring continued big-investor interest.
• McDonald’s remains well covered by analysts with a Moderate Buy consensus and an average price target of $336.26, while the company also recently posted better-than-expected quarterly EPS and revenue and paid a $1.86 quarterly dividend.

Graham Capital Management L.P. raised its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 249.4% during the 4th quarter, according to its most recent filing with the SEC. The firm owned 68,737 shares of the fast-food giant's stock after acquiring an additional 49,066 shares during the period. McDonald's makes up approximately 0.5% of Graham Capital Management L.P.'s holdings, making the stock its 29th biggest position. Graham Capital Management L.P.'s holdings in McDonald's were worth $21,008,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also bought and sold shares of the stock. Night Squared LP lifted its stake in McDonald's by 28.7% during the 4th quarter. Night Squared LP now owns 12,833 shares of the fast-food giant's stock valued at $3,922,000 after acquiring an additional 2,864 shares during the period. Howe & Rusling Inc. lifted its stake in McDonald's by 15.3% during the 4th quarter. Howe & Rusling Inc. now owns 47,775 shares of the fast-food giant's stock valued at $14,602,000 after acquiring an additional 6,339 shares during the period. Opal Capital LLC bought a new position in McDonald's during the 4th quarter valued at about $442,000. Rothschild Wealth LLC lifted its stake in McDonald's by 12.1% during the 4th quarter. Rothschild Wealth LLC now owns 9,143 shares of the fast-food giant's stock valued at $2,794,000 after acquiring an additional 984 shares during the period. Finally, Aster Capital Management DIFC Ltd bought a new position in McDonald's during the 4th quarter valued at about $346,000. Institutional investors own 70.29% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have issued reports on MCD. Robert W. Baird set a $305.00 target price on shares of McDonald's in a research note on Thursday, May 7th. Royal Bank Of Canada lowered their target price on shares of McDonald's from $330.00 to $305.00 and set a "sector perform" rating on the stock in a research note on Friday, May 8th. Evercore set a $350.00 price target on shares of McDonald's in a research report on Friday, May 8th. Morgan Stanley set a $331.00 price target on shares of McDonald's in a research report on Friday, May 8th. Finally, Barclays reduced their price target on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $336.26.

McDonald's News Roundup

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

• Positive Sentiment: McDonald’s is bringing back its fried apple pie for America’s 250th birthday, a nostalgic limited-time item that could help drive traffic and sales while generating a lot of consumer buzz. AP News - McDonald’s is serving fried apple pie again for America’s 250th birthday
• Positive Sentiment: The company is also being highlighted for bringing back other fan-favorite menu items after decades away, reinforcing the view that McDonald’s is using nostalgia-based offerings to support customer engagement. Article - McDonald's Is Bringing Back a Highly Requested Menu Item for the First Time in Over 30 Years
• Positive Sentiment: McDonald’s is testing expanded beverage options, including custom sodas, refreshers and Red Bull-based drinks, which could open a new source of incremental sales and improve ticket size. Yahoo Finance - McDonald's 70-Year Coke Alliance Enters New Beverage Test
• Neutral Sentiment: Several stories focus on McDonald’s brand strength, including celebrity mentions and “coolest locations” lists, which are good for visibility but likely have limited direct impact on earnings. Article - Tina Fey Loves This McDonald’s Menu Item So Much, She Walked Down the Highway in Italy To Order It
• Neutral Sentiment: The company is also making operational changes, including rebuilding a classic Gahanna location with a modern look and altering drive-thru features, but these are more incremental than transformative. AOL - McDonald’s to demolish classic Gahanna location and rebuild it with modern look
• Negative Sentiment: One article about a possible $1 drive-thru fee and another criticizing the chain’s ice cream machine reliability could add to customer frustration and pressure sentiment, even if the financial impact is unclear. Article - Is McDonald’s adding a $1 fee to drive-thru orders? Customers want answers
• Negative Sentiment: Coverage that McCrispy Strips are being revamped after customer criticism suggests McDonald’s is responding to product complaints, which may weigh slightly on sentiment around menu execution. AOL - McDonald’s to Revamp McCrispy Strips After Customer Criticism

Insider Buying and Selling

In related news, insider Joseph M. Erlinger sold 5,252 shares of the firm'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 sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm'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 completion of the sale, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 11,307 shares of company stock valued at $3,262,622 over the last quarter. Corporate insiders own 0.26% of the company's stock.

McDonald's Trading Up 0.7%

McDonald's stock opened at $287.99 on Wednesday. The firm has a 50 day moving average of $288.58 and a 200 day moving average of $306.42. The firm has a market capitalization of $204.62 billion, a price-to-earnings ratio of 23.74, a P/E/G ratio of 2.85 and a beta of 0.41. McDonald's Corporation has a 12-month low of $271.85 and a 12-month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping 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 company had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same period in the prior year, the firm posted $2.67 EPS. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. On average, analysts predict that McDonald's Corporation will post 12.93 EPS for the current year.

McDonald's Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date was Tuesday, June 2nd. McDonald's's dividend payout ratio is currently 61.34%.

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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