Hillsdale Investment Management Inc. Acquires 5,960 Shares of McDonald's Corporation $MCD

Key Points

• Hillsdale Investment Management boosted its McDonald's stake by 365.6% in the first quarter, buying 5,960 additional shares and bringing its total to 7,590 shares valued at about $2.36 million.
• Wall Street remains constructive on McDonald's: analysts have a consensus rating of “Moderate Buy” with an average target price of $336.35, even though some firms have recently mixed in hold ratings and trimmed targets.
• Business momentum looks solid, with McDonald's reporting Q1 earnings and revenue above expectations and continuing to support traffic through limited-time menu launches and promotions like new chicken items and BT21 Happy Meals.

Hillsdale Investment Management Inc. grew its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 365.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 7,590 shares of the fast-food giant's stock after acquiring an additional 5,960 shares during the period. Hillsdale Investment Management Inc.'s holdings in McDonald's were worth $2,359,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also recently made changes to their positions in MCD. Your Advocates Ltd. LLP bought a new position in McDonald's in the 4th quarter worth approximately $27,000. Park Place Capital Corp raised its position in shares of McDonald's by 95.7% during the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after buying an additional 45 shares during the last quarter. IFC & Insurance Marketing Inc. bought a new stake in shares of McDonald's during the fourth quarter valued at approximately $29,000. Abound Financial LLC purchased a new position in shares of McDonald's in the fourth quarter worth $30,000. Finally, Purpose Unlimited Inc. purchased a new position in shares of McDonald's in the fourth quarter worth $31,000. Institutional investors own 70.29% of the company's stock.

Wall Street Analysts Forecast Growth

MCD has been the subject of several research analyst reports. Deutsche Bank Aktiengesellschaft set a $325.00 target price on shares of McDonald's in a research note on Thursday, July 9th. Royal Bank Of Canada reiterated a "sector perform" rating on shares of McDonald's in a research note on Tuesday, June 23rd. Robert W. Baird set a $305.00 price objective on shares of McDonald's in a report on Thursday, May 7th. Cfra upgraded McDonald's to a "buy" rating in a research report on Friday, May 8th. Finally, TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a report on Friday, June 12th. Fifteen analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company's stock. According to MarketBeat, McDonald's has an average rating of "Moderate Buy" and an average target price of $336.35.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is rolling out several limited-time menu items, including new chicken products and a Caesar sauce, which could boost customer traffic and add to sales momentum. McDonald’s Is Releasing 4 New Menu Items for a Limited Time
• Positive Sentiment: The new Caesar sauce and related chicken sandwich/snack wrap offerings signal continued menu innovation, which investors may view as a way to defend market share in a mixed restaurant environment. McDonald's upcoming Caesar sauce brings a new sandwich and snack wrap to the summer menu
• Positive Sentiment: The BT21 Happy Meal promotion adds a collectible, marketing-driven sales event that could attract families and drive near-term visits. How Long Will the BT21 Happy Meal Be Available at McDonald’s?
• Neutral Sentiment: Some coverage focuses on the new PlayPlace design and toy promotions, which are good for brand buzz but are unlikely to materially change fundamentals on their own. People Are Talking About McDonald’s New “See-Through” PlayPlace Design
• Neutral Sentiment: Analyst and valuation-related articles suggest MCD may look attractive on a long-term basis, but they do not appear to be major catalysts by themselves. MCD at $268, Starbucks at $106: Buy, Sell or Hold?
• Negative Sentiment: Citigroup trimmed its price target on McDonald’s, which may temper enthusiasm even though it kept a buy rating. Benzinga report on Citigroup price target cut

Insider Transactions at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction dated 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 transaction, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the business's stock in a transaction that occurred 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 sale, the insider directly owned 7,734 shares in the company, valued at $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. In the last ninety days, insiders sold 8,681 shares of company stock valued at $2,456,440. 0.26% of the stock is owned by insiders.

McDonald's Stock Performance

Shares of MCD opened at $264.88 on Thursday. The company's fifty day moving average is $277.44 and its 200 day moving average is $300.82. McDonald's Corporation has a fifty-two week low of $264.09 and a fifty-two week high of $341.75. The stock has a market capitalization of $188.20 billion, a PE ratio of 21.84, a P/E/G ratio of 2.79 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating 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 business had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same quarter last year, the business earned $2.67 earnings per share. McDonald's's quarterly revenue was up 9.4% compared to the same quarter last year. As a group, research analysts forecast that McDonald's Corporation will post 12.9 earnings per share for the current year.

McDonald's Dividend Announcement

The firm 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 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Tuesday, June 2nd. McDonald's's dividend payout ratio is currently 61.34%.

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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