IHT Wealth Management LLC Has $9.62 Million Holdings in McDonald's Corporation $MCD

Key Points

• IHT Wealth Management increased its McDonald’s stake by 19.4% in the fourth quarter, ending with 31,455 shares valued at about $9.62 million.
• Institutional interest in McDonald’s remained strong, with several other hedge funds adding to positions and 70.29% of the stock now held by institutional investors and hedge funds.
• McDonald’s reported better-than-expected quarterly results, with EPS of $2.83 versus $2.74 expected and revenue up 9.4% year over year, while the company also paid a quarterly dividend of $1.86 per share.

IHT Wealth Management LLC boosted its position in McDonald's Corporation (NYSE:MCD - Free Report) by 19.4% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 31,455 shares of the fast-food giant's stock after buying an additional 5,118 shares during the quarter. IHT Wealth Management LLC's holdings in McDonald's were worth $9,618,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Peterson Wealth Services grew its stake in McDonald's by 3,294.5% in the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant's stock valued at $3,600,000 after buying an additional 11,432 shares during the last quarter. Harbour Investments Inc. grew its stake in McDonald's by 84.4% in the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock valued at $10,853,000 after buying an additional 16,252 shares during the last quarter. Capital International Sarl grew its stake in McDonald's by 10.4% in the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant's stock valued at $19,639,000 after buying an additional 6,079 shares during the last quarter. North Dakota State Investment Board acquired a new position in McDonald's in the 4th quarter valued at $7,493,000. Finally, Pittenger & Anderson Inc. grew its position in McDonald's by 21.9% in the 4th quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock worth $6,567,000 after purchasing an additional 3,866 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction dated 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 completion of the transaction, the insider directly owned 7,734 shares of the company's stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, the executive vice president directly owned 6,268 shares of the company's stock, valued at $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 11,307 shares of company stock valued at $3,262,622 over the last three months. 0.26% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several analysts have issued reports on MCD shares. JPMorgan Chase & Co. decreased their price target on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a research report on Monday, May 11th. Cfra upgraded shares of McDonald's to a "buy" rating in a research report on Friday, May 8th. 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. Rothschild & Co Redburn upgraded shares of McDonald's from a "sell" rating to a "neutral" rating and raised their price target for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Finally, Evercore set a $350.00 price target on shares of McDonald's in a research report on Friday, May 8th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, McDonald's has an average rating of "Moderate Buy" and a consensus price target of $336.26.

McDonald's Stock Down 1.3%

Shares of MCD stock opened at $284.16 on Thursday. McDonald's Corporation has a 12-month low of $271.85 and a 12-month high of $341.75. The company has a market capitalization of $201.90 billion, a P/E ratio of 23.43, a P/E/G ratio of 2.87 and a beta of 0.41. The firm has a 50-day moving average price of $288.07 and a 200 day moving average price of $306.22.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (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 firm had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. During the same period last year, the firm posted $2.67 EPS. The firm's quarterly revenue was up 9.4% on a year-over-year basis. As a group, research analysts expect that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were issued a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is currently 61.34%.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is bringing back its fried apple pie after more than 30 years, a nostalgic, limited-time menu move that could support traffic and generate buzz with customers. AP News article
• Positive Sentiment: Other reports also note McDonald’s has been winning with value-oriented diners, which may help it hold up better than midtier restaurant chains as consumers trade down or seek familiar brands. Yahoo Finance article
• Neutral Sentiment: Coverage of McDonald’s reviving classic menu items, updating drive-thrus, and rebuilding older locations is mostly brand/operations news, with limited immediate impact on the stock. TheStreet article
• Neutral Sentiment: A Zacks note pointed out that MCD recently fell more than the broader market, but it did not identify a major new catalyst beyond the stock’s recent weakness. Zacks article
• Negative Sentiment: The biggest headwind is the market’s concern that restaurant spending is fragmenting, which could pressure midtier operators and keep sentiment cautious around consumer discretionary names like McDonald’s. Yahoo Finance article

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.

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