Independent Financial Group LLC Takes Position in McDonald's Corporation $MCD

Key Points

• Independent Financial Group LLC initiated a new position in McDonald’s during the first quarter, buying 6,999 shares valued at about $2.175 million.
• Institutional ownership remains high, with 70.29% of McDonald’s stock held by hedge funds and other institutional investors. Several other funds also increased their stakes in the company during the quarter.
• Analyst sentiment is mixed but generally positive: McDonald’s has a “Moderate Buy” consensus rating and an average price target of $336.32, though some firms recently trimmed targets amid concerns about performance.

Independent Financial Group LLC bought a new stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) during the 1st quarter, according to its most recent filing with the SEC. The firm bought 6,999 shares of the fast-food giant's stock, valued at approximately $2,175,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of MCD. Frazier Financial Advisors LLC grew its holdings in McDonald's by 18.1% during the 1st quarter. Frazier Financial Advisors LLC now owns 725 shares of the fast-food giant's stock valued at $225,000 after purchasing an additional 111 shares in the last quarter. W.G. Shaheen & Associates DBA Whitney & Co increased its stake in McDonald's by 1.1% during the 1st quarter. W.G. Shaheen & Associates DBA Whitney & Co now owns 6,996 shares of the fast-food giant's stock worth $2,174,000 after buying an additional 75 shares during the period. Westover Capital Advisors LLC lifted its holdings in McDonald's by 4.3% in the 1st quarter. Westover Capital Advisors LLC now owns 3,227 shares of the fast-food giant's stock worth $1,003,000 after buying an additional 133 shares in the last quarter. Wealthfront Advisers LLC lifted its holdings in McDonald's by 2.5% in the 1st quarter. Wealthfront Advisers LLC now owns 91,804 shares of the fast-food giant's stock worth $28,532,000 after buying an additional 2,246 shares in the last quarter. Finally, Blackhawk Capital Partners LLC boosted its position in McDonald's by 3.5% in the 1st quarter. Blackhawk Capital Partners LLC now owns 2,817 shares of the fast-food giant's stock valued at $876,000 after buying an additional 94 shares during the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

MCD has been the subject of several recent analyst reports. Morgan Stanley lowered their target price on McDonald's from $331.00 to $322.00 and set an "equal weight" rating for the company in a research note on Wednesday. Barclays cut their price target on McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Cfra upgraded McDonald's to a "buy" rating in a research note on Friday, May 8th. Wells Fargo & Company lowered their price objective on McDonald's from $320.00 to $300.00 and set an "overweight" rating for the company in a research note on Thursday. Finally, BTIG Research restated a "buy" rating and set a $370.00 price objective on shares of McDonald's in a report on Thursday, May 7th. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat.com, McDonald's currently has an average rating of "Moderate Buy" and a consensus target price of $336.32.

More McDonald's News

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

• Positive Sentiment: Tigress Financial raised its price target on McDonald’s to $390 from $385 and reiterated a buy rating, signaling confidence that the stock has meaningful upside from current levels.
• Positive Sentiment: Analyst coverage and commentary continue to highlight McDonald’s value offerings, loyalty efforts, localized marketing, and menu innovation as ways the company can support customer traffic and defend sales trends.
• Neutral Sentiment: McDonald’s is expected to report second-quarter earnings next month, with consensus calling for modest single-digit profit growth, keeping investor focus on whether traffic and margins improve.
• Neutral Sentiment: Recent product news, including the new Caesar sauce and other menu rollouts, is generating consumer interest, but the items appear more promotional than clearly material to near-term earnings.
• Negative Sentiment: Articles questioning why McDonald’s stock is at nearly two-year lows and noting a 10.1% decline over the past six months versus a rising S&P 500 suggest investors are worried about relative underperformance and slowing momentum.
• Negative Sentiment: Commentary describing a “McProblem” that is not getting better points to continuing concerns about business execution, customer traffic, or overall sentiment toward the stock.
• Negative Sentiment: One recent piece also urged investors to stay skeptical, indicating that while the stock may look attractive to some value investors, there are still fundamental questions weighing on shares.

McDonald's Price Performance

Shares of MCD stock opened at $267.74 on Friday. The firm has a fifty day moving average of $277.07 and a two-hundred day moving average of $300.33. The firm has a market cap of $190.23 billion, a P/E ratio of 22.07, a P/E/G ratio of 2.78 and a beta of 0.41. McDonald's Corporation has a 1-year low of $264.09 and a 1-year 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 (EPS) for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the prior year, the business posted $2.67 EPS. The company's revenue for the quarter was up 9.4% on a year-over-year basis. On average, sell-side analysts expect that McDonald's Corporation will post 12.86 EPS for the current year.

McDonald's Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were issued a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald's's payout ratio is currently 61.34%.

Insider Activity at McDonald's

In other 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 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the business'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 of the company's stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,681 shares of company stock worth $2,456,440 in the last 90 days. 0.26% of the stock is currently owned by insiders.

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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