HB Wealth Management LLC Reduces Stake in McDonald's Corporation $MCD

Key Points

• HB Wealth Management reduced its McDonald’s stake by 4.9% in the second quarter, selling 4,297 shares and retaining 82,678 shares valued at approximately $22.35 million. Institutional investors still own 70.29% of the company.
• Analysts remain broadly positive, with McDonald’s carrying a “Moderate Buy” consensus rating and an average price target of $321.35, despite some target-price cuts and rating changes.
• McDonald’s beat quarterly EPS estimates, reporting $3.38 versus $3.32 expected, while revenue rose 3.7% year over year to $7.10 billion. The company also declared a quarterly dividend of $1.86 per share, representing a 2.9% yield.

HB Wealth Management LLC reduced its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 4.9% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 82,678 shares of the fast-food giant's stock after selling 4,297 shares during the period. HB Wealth Management LLC's holdings in McDonald's were worth $22,349,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of MCD. Norges Bank purchased a new stake in McDonald's in the fourth quarter worth $2,890,438,000. Bank of New York Mellon Corp purchased a new position in shares of McDonald's during the 2nd quarter valued at $1,359,276,000. Diamant Asset Management Inc. grew its stake in shares of McDonald's by 30,979.0% during the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock worth $806,917,000 after acquiring an additional 2,587,986 shares during the period. J. Stern & Co. LLP grew its stake in shares of McDonald's by 9,867.5% during the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock worth $776,608,000 after acquiring an additional 2,515,515 shares during the period. Finally, Viking Global Investors LP grew its stake in shares of McDonald's by 171.7% during the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock worth $913,157,000 after acquiring an additional 1,974,998 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on MCD. Freedom Capital upgraded McDonald's from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 5th. Argus cut their target price on shares of McDonald's from $320.00 to $310.00 and set a "buy" rating for the company in a research report on Wednesday, August 26th. Robert W. Baird upgraded shares of McDonald's to a "hold" rating in a research note on Monday, August 24th. Evercore set a $320.00 price target on shares of McDonald's in a research report on Thursday, July 23rd. Finally, Piper Sandler set a $286.00 price target on shares of McDonald's in a research note on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have issued a Hold rating to the company's stock. According to MarketBeat, McDonald's has an average rating of "Moderate Buy" and a consensus target price of $321.35.

Insiders Place Their Bets

In related news, insider Joseph Erlinger sold 5,252 shares of the company's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.26% of the company's stock.

McDonald's News Roundup

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

• Positive Sentiment: Valuation may attract contrarian buyers: McDonald’s is trading at roughly 19.15 times earnings, below the restaurant industry’s average multiple. Analysts point to global expansion, digital initiatives and new product efforts as possible catalysts for a recovery. McDonald's Trades at 19.15X P/E: Is This a Discounted Opportunity?
• Positive Sentiment: Promotional activity could support traffic: McDonald’s is bringing back popular menu items, launching a Texas-themed meal with collectible cups and promoting limited-time products. These campaigns may encourage visits and improve near-term sales, though their financial impact is unproven. McDonald's launches exclusive state-themed meal
• Neutral Sentiment: Brand visibility remains high: Coverage of McDonald’s breakfast offerings, Grimace appearances, collectible merchandise and Warren Buffett’s long-standing affinity for the brand reinforces consumer awareness but is unlikely to materially change earnings expectations. The best McDonald’s breakfast sandwich isn’t on the menu
• Negative Sentiment: U.S. consumer weakness is the main concern: Reports describe consumer-focused stocks, including McDonald’s, as signaling softer spending in middle America. Articles also highlight customers shifting to competing fast-food chains, increasing pressure on traffic and comparable sales. Wall Street worried about consumer stocks
• Negative Sentiment: Value positioning remains problematic: Coverage says McDonald’s $3 value offering has not fully delivered for customers or the company, raising concerns about affordability, franchisee economics and the effectiveness of discounting. Why you can't find McDonald's $3 value menu

McDonald's Stock Performance

Shares of MCD opened at $255.69 on Friday. McDonald's Corporation has a 52-week low of $255.49 and a 52-week high of $341.75. The stock's 50-day simple moving average is $269.67 and its 200 day simple moving average is $289.39. The stock has a market capitalization of $180.94 billion, a price-to-earnings ratio of 20.77, a price-to-earnings-growth ratio of 2.76 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The business had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same quarter in the previous year, the firm earned $3.19 EPS. The company's quarterly revenue was up 3.7% compared to the same quarter last year. On average, research analysts forecast that McDonald's Corporation will post 12.87 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.9%. McDonald's's payout ratio is currently 60.44%.

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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