Hsbc Holdings PLC Sells 125,085 Shares of McDonald's Corporation $MCD

Key Points

• HSBC Holdings PLC reduced its McDonald’s stake by 7.9% in the fourth quarter, selling 125,085 shares and ending with 1,458,098 shares valued at about $445.7 million. Despite the trim, institutional ownership remains high at 70.29%.
• McDonald’s recent earnings topped expectations, reporting $2.83 EPS versus the $2.74 consensus and revenue of $6.52 billion, up 9.4% year over year. The company also continues to return cash to shareholders, paying a quarterly dividend of $1.86 per share.
• Analysts remain mixed but broadly constructive, with the stock carrying a consensus “Moderate Buy” rating and an average target price of $336.26. However, some firms have recently cut ratings or targets, reflecting caution after the stock’s pullback.

Hsbc Holdings PLC trimmed its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 7.9% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,458,098 shares of the fast-food giant's stock after selling 125,085 shares during the quarter. Hsbc Holdings PLC owned 0.21% of McDonald's worth $445,674,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds also recently modified their holdings of the company. Your Advocates Ltd. LLP bought a new position in McDonald's during the fourth quarter worth $27,000. Park Place Capital Corp boosted its holdings in McDonald's by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after purchasing an additional 45 shares during the period. IFC & Insurance Marketing Inc. bought a new stake in McDonald's in the 4th quarter valued at $29,000. Abound Financial LLC acquired a new stake in McDonald's in the 4th quarter worth $30,000. Finally, DecisionPoint Financial LLC grew its position in McDonald's by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock worth $31,000 after purchasing an additional 97 shares during the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald's Stock Performance

Shares of MCD stock opened at $279.00 on Friday. The firm has a fifty day moving average of $286.98 and a 200-day moving average of $305.80. The stock has a market cap of $198.23 billion, a price-to-earnings ratio of 23.00, a P/E/G ratio of 2.78 and a beta of 0.41. McDonald's Corporation has a 52-week low of $271.85 and a 52-week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating the consensus estimate of $2.74 by $0.09. The business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm's revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the business earned $2.67 EPS. On average, sell-side analysts predict that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were paid a dividend of $1.86 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald's's dividend payout ratio (DPR) is currently 61.34%.

Key Stories Impacting McDonald's

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

• Positive Sentiment: McDonald’s is reviving its original Fried Apple Pie for the first time since 1992, a nostalgia-driven menu move that could boost customer traffic, social buzz, and limited-time sales. McDonald’s (MCD) Brings Back Fried Apple Pie After More Than 30 Years
• Positive Sentiment: Recent analyst coverage highlighted McDonald’s value meals, menu innovation, and brand activations as helping lift same-store sales, with Australia cited as a key area of momentum. McDonald's Blends Value With Brand Activations: Is It Paying Off?
• Positive Sentiment: Seeking Alpha published a rating upgrade arguing McDonald’s “McValue” strategy has finally reached buy territory, reinforcing the case that the company’s value offerings are supporting demand. McDonald's (Mc)Value Finally Reaches Buy Territory (Rating Upgrade)
• Neutral Sentiment: Coverage around McDonald’s AI drive-thru plans suggests the company is still experimenting with automation to improve service and efficiency, but the near-term stock impact is unclear. McDonald’s AI drive-thru may take your next order
• Neutral Sentiment: Several articles about historic landmarks, Happy Meal toys, and food trivia are mostly brand-related publicity and are less likely to materially move the stock on their own.
• Negative Sentiment: Some recent commentary remains cautious, with one article arguing McDonald’s is still delivering but not enough to justify a buy, which may temper enthusiasm for the shares. McDonald's: Still Delivering, But Not Enough For A Buy

Insider Transactions at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Joseph M. 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 value of $1,493,248.64. Following the completion of the sale, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 11,307 shares of company stock valued at $3,262,622. Corporate insiders own 0.26% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on MCD. Weiss Ratings lowered shares of McDonald's from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, May 29th. Wells Fargo & Company decreased their target price on McDonald's from $355.00 to $320.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. JPMorgan Chase & Co. lowered their price target on McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a research note on Monday, May 11th. Morgan Stanley set a $331.00 price target on McDonald's in a report on Friday, May 8th. Finally, Erste Group Bank downgraded McDonald's from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Sixteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $336.26.

McDonald's 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.

Want to see what other hedge funds are holding MCD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McDonald's Corporation (NYSE:MCD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.