HS Management Partners LLC Trims Stock Holdings in McDonald's Corporation $MCD

Key Points

• HS Management Partners LLC has reduced its holdings in McDonald's Corporation by 32.2%, selling 44,400 shares in the second quarter, leaving it with 93,414 shares valued at approximately $27.3 million.
• Despite the reduction in holdings by HS Management, other hedge funds have increased their stakes in McDonald’s, with notable purchases including a new position from Nuveen LLC valued at around $1.32 billion.
• McDonald's recently reported earnings of $3.19 per share, surpassing analyst expectations, and announced a quarterly dividend of $1.77 per share.

HS Management Partners LLC cut its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 32.2% in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 93,414 shares of the fast-food giant's stock after selling 44,400 shares during the quarter. McDonald's accounts for about 2.2% of HS Management Partners LLC's portfolio, making the stock its 23rd largest holding. HS Management Partners LLC's holdings in McDonald's were worth $27,293,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Nuveen LLC purchased a new position in McDonald's in the 1st quarter valued at about $1,324,961,000. GAMMA Investing LLC grew its position in McDonald's by 39,039.7% in the first quarter. GAMMA Investing LLC now owns 3,497,919 shares of the fast-food giant's stock worth $1,092,645,000 after acquiring an additional 3,488,982 shares during the period. Price T Rowe Associates Inc. MD boosted its position in shares of McDonald's by 16.8% during the first quarter. Price T Rowe Associates Inc. MD now owns 9,341,460 shares of the fast-food giant's stock worth $2,917,993,000 after buying an additional 1,344,954 shares during the period. Goldman Sachs Group Inc. grew its holdings in shares of McDonald's by 19.6% in the first quarter. Goldman Sachs Group Inc. now owns 4,982,825 shares of the fast-food giant's stock valued at $1,556,485,000 after purchasing an additional 815,768 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. raised its position in McDonald's by 732.6% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 650,544 shares of the fast-food giant's stock valued at $203,211,000 after purchasing an additional 572,408 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald's Stock Up 0.9%

Shares of McDonald's stock opened at $305.10 on Friday. The business's fifty day moving average is $306.48 and its two-hundred day moving average is $306.14. McDonald's Corporation has a fifty-two week low of $276.53 and a fifty-two week high of $326.32. The firm has a market cap of $217.72 billion, a PE ratio of 26.14, a P/E/G ratio of 3.08 and a beta of 0.50.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share for the quarter, beating analysts' consensus estimates 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% compared to the same quarter last year. During the same quarter last year, the firm earned $2.97 earnings per share. Equities research analysts anticipate that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd were paid a $1.77 dividend. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Tuesday, September 2nd. McDonald's's dividend payout ratio (DPR) is currently 60.67%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Argus downgraded McDonald's from a "buy" rating to a "hold" rating in a report on Friday, June 13th. Loop Capital downgraded McDonald's from a "buy" rating to a "hold" rating and lowered their target price for the company from $346.00 to $315.00 in a research note on Friday, June 6th. Stifel Nicolaus upped their price target on McDonald's from $300.00 to $315.00 and gave the stock a "hold" rating in a research note on Friday, August 22nd. Barclays lifted their price objective on shares of McDonald's from $355.00 to $360.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. Finally, Redburn Atlantic restated a "sell" rating and set a $260.00 price objective (down previously from $319.00) on shares of McDonald's in a research report on Tuesday, June 10th. Eleven analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $325.86.

Insider Buying and Selling at McDonald's

In other news, CMO Edith Morgan Flatley sold 1,000 shares of the business's stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $300.00, for a total transaction of $300,000.00. Following the transaction, the chief marketing officer directly owned 8,858 shares of the company's stock, valued at approximately $2,657,400. The trade was a 10.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 939 shares of the business's stock in a transaction dated Wednesday, July 23rd. The stock was 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 approximately $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.

McDonald's 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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