Hennessy Advisors Inc. Trims Holdings in McDonald's Corporation $MCD

Key Points

• Hennessy Advisors reduced its McDonald's stake by 22.3% in Q4, selling 6,900 shares and retaining 24,000 shares worth about $7.34 million at the end of the period.
• Company insiders sold heavily last quarter—totaling 71,657 shares (~$23.7 million), including sales by the CMO and an EVP—leaving insiders with just 0.26% ownership while institutions hold 70.29%.
• McDonald's recently beat quarterly estimates (EPS $3.12 vs. $3.05; revenue $7.01B) and pays a $1.86 quarterly dividend (2.4% yield); analyst coverage is mixed with a MarketBeat consensus rating of Hold and a $339.38 target.

Hennessy Advisors Inc. lessened its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 22.3% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 24,000 shares of the fast-food giant's stock after selling 6,900 shares during the period. Hennessy Advisors Inc.'s holdings in McDonald's were worth $7,335,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of the business. Global X Japan Co. Ltd. grew its holdings in shares of McDonald's by 236.7% during the 3rd quarter. Global X Japan Co. Ltd. now owns 6,502 shares of the fast-food giant's stock worth $1,976,000 after acquiring an additional 4,571 shares during the period. D.A. Davidson & CO. grew its holdings in shares of McDonald's by 2.7% during the 3rd quarter. D.A. Davidson & CO. now owns 143,492 shares of the fast-food giant's stock worth $43,606,000 after acquiring an additional 3,774 shares during the period. Regent Peak Wealth Advisors LLC purchased a new position in shares of McDonald's during the 3rd quarter worth approximately $1,120,000. Synergy Asset Management LLC grew its holdings in shares of McDonald's by 317.2% during the 3rd quarter. Synergy Asset Management LLC now owns 19,079 shares of the fast-food giant's stock worth $5,691,000 after acquiring an additional 14,506 shares during the period. Finally, National Pension Service grew its holdings in shares of McDonald's by 2.5% during the 3rd quarter. National Pension Service now owns 1,533,015 shares of the fast-food giant's stock worth $465,868,000 after acquiring an additional 37,744 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on MCD shares. Argus upgraded McDonald's from a "hold" rating to a "buy" rating and set a $380.00 target price on the stock in a report on Friday, February 13th. Citigroup upped their target price on McDonald's from $371.00 to $375.00 and gave the stock a "buy" rating in a report on Thursday, February 12th. Erste Group Bank upgraded McDonald's from a "hold" rating to a "buy" rating in a report on Wednesday, February 18th. JPMorgan Chase & Co. upped their target price on McDonald's from $305.00 to $325.00 and gave the stock an "overweight" rating in a report on Tuesday, February 24th. Finally, Tigress Financial upped their target price on McDonald's from $360.00 to $385.00 and gave the stock a "buy" rating in a report on Friday, March 6th. Seventeen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, McDonald's presently has an average rating of "Hold" and a consensus target price of $339.38.

Insider Buying and Selling

In related news, CMO Edith Morgan Flatley sold 4,692 shares of the company's stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $331.00, for a total value of $1,553,052.00. Following the transaction, the chief marketing officer directly owned 6,200 shares of the company's stock, valued at approximately $2,052,200. This represents a 43.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Jonathan Banner sold 6,201 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $333.29, for a total value of $2,066,731.29. Following the completion of the transaction, the executive vice president directly owned 2,291 shares in the company, valued at $763,567.39. This trade represents a 73.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 71,657 shares of company stock worth $23,723,307. 0.26% of the stock is currently owned by corporate insiders.

McDonald's Stock Down 1.4%

McDonald's stock opened at $306.91 on Tuesday. The company has a market capitalization of $218.16 billion, a P/E ratio of 25.68, a PEG ratio of 2.81 and a beta of 0.53. The stock's 50 day moving average is $319.24 and its 200 day moving average is $311.95. McDonald's Corporation has a twelve month low of $283.47 and a twelve month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share for the quarter, topping the consensus estimate of $3.05 by $0.07. The company had revenue of $7.01 billion for the quarter, compared to the consensus estimate of $6.81 billion. McDonald's had a negative return on equity of 343.90% and a net margin of 31.85%.The firm's quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.83 EPS. As a group, equities analysts expect that McDonald's Corporation will post 13.22 EPS for the current year.

McDonald's Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were paid a $1.86 dividend. The ex-dividend date was Tuesday, March 3rd. This represents a $7.44 annualized dividend and a dividend yield of 2.4%. McDonald's's dividend payout ratio is presently 62.26%.

McDonald's News Roundup

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

• Positive Sentiment: Wall Street reacts favorably to McDonald’s new lower‑priced offering — UBS says the upcoming $3 menu reinforces McDonald’s value proposition and could support traffic and same‑store sales. McDonald's $3 menu is about to kick off
• Neutral Sentiment: Analysts and investors are bracing for the Q1 print — coverage notes McDonald’s will report quarterly results soon and consensus expects single‑digit EPS growth, which could limit upside unless the company provides stronger guidance. What You Need to Know Ahead of McDonald's Earnings Release
• Neutral Sentiment: KeyCorp trimmed its price target from $354 to $345 but kept an Overweight rating — the cut narrows upside but the positive rating signals continued analyst confidence. Benzinga coverage of KeyCorp PT change
• Neutral Sentiment: Corporate and brand stories (donations, product features, historical pieces) are circulating but are unlikely to move the stock materially in the near term. Examples: a local McDonald’s charitable donation and several feature stories on menu items and company history. Evgeni Malkin and Local McDonald's Donate
• Negative Sentiment: Near‑term selling pressure: market commentary attributes the stock’s decline to profit‑taking and investors positioning ahead of earnings; pieces note MCD underperformed the broader market in the latest session. Here's Why McDonald's (MCD) Fell
• Negative Sentiment: Another recap of the intraday weakness appeared in Zacks, echoing the same short‑term drivers (profit‑taking, positioning). Watch for any catalyst in the earnings release that could deepen the move. Zacks: Here's Why McDonald's Fell

McDonald's Company 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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