Intech Investment Management LLC Increases Stock Holdings in McDonald's Corporation $MCD

Key Points

• Intech Investment Management boosted its McDonald’s stake by 41% in the fourth quarter, buying 9,543 additional shares and bringing its total holdings to 32,821 shares worth about $10.0 million.
• McDonald’s latest quarterly results beat expectations, with EPS of $2.83 and revenue of $6.52 billion, while sales rose 9.4% year over year.
• Analysts remain broadly positive: the stock has a Moderate Buy consensus rating with a $334.45 average price target, even as some firms trimmed their targets and one insider sale was disclosed.

Intech Investment Management LLC increased its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 41.0% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 32,821 shares of the fast-food giant's stock after purchasing an additional 9,543 shares during the period. Intech Investment Management LLC's holdings in McDonald's were worth $10,031,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Your Advocates Ltd. LLP purchased a new stake in shares of McDonald's in the fourth quarter valued at $27,000. Park Place Capital Corp grew its position in shares of McDonald's by 95.7% in the fourth 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. DecisionPoint Financial LLC grew its position in shares of McDonald's by 1,616.7% in the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after purchasing an additional 97 shares during the period. Entrust Financial LLC purchased a new stake in shares of McDonald's in the fourth quarter valued at $31,000. Finally, Painted Porch Advisors LLC grew its position in shares of McDonald's by 735.7% in the third quarter. Painted Porch Advisors LLC now owns 117 shares of the fast-food giant's stock valued at $36,000 after purchasing an additional 103 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Key McDonald's News

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

• Positive Sentiment: McDonald’s recent quarterly results beat expectations, with EPS and revenue both topping estimates and sales rising year over year, reinforcing the view that the company’s core business remains resilient.
• Positive Sentiment: Analysts remain generally optimistic, with several firms keeping buy or overweight ratings and a consensus price target above the current trading range, which may help support sentiment.
• Positive Sentiment: The company is teasing new marketing tie-ins such as a 2026 FIFA World Cup Happy Meal featuring Squishmallows, a move that could lift traffic and keep the brand top of mind with families and younger consumers. Article Title
• Positive Sentiment: McDonald’s continues to attract investor interest, with multiple articles noting the stock is widely watched and that analysts are still fairly upbeat about its future prospects. Article Title
• Neutral Sentiment: An insider sale by Joseph Erlinger was disclosed, but the transaction was small relative to his remaining holdings and does not appear to signal a major change in outlook. Article Title
• Neutral Sentiment: Several non-fundamental articles, including brand history and vintage-photo features, may boost visibility but are unlikely to materially affect earnings or valuation.
• Negative Sentiment: One recent article highlighted that McDonald’s has underperformed the broader consumer discretionary group over the past year, which may remind investors that the shares still face valuation and performance challenges. Article Title

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the company. Barclays lowered their price objective on McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Mizuho boosted their price target on McDonald's from $300.00 to $325.00 and gave the company a "neutral" rating in a research report on Friday, February 6th. Evercore set a $350.00 price target on McDonald's in a research report on Friday, May 8th. Rothschild & Co Redburn raised McDonald's from a "sell" rating to a "neutral" rating and boosted their price target for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Finally, Guggenheim lowered their price target on McDonald's from $325.00 to $320.00 and set a "neutral" rating for the company in a research report on Friday, February 13th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $334.45.

Insider Activity at McDonald's

In other McDonald's news, insider Joseph M. Erlinger sold 2,626 shares of the business's stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $307.00, for a total transaction of $806,182.00. Following the transaction, the insider owned 8,400 shares in the company, valued at $2,578,800. The trade was a 23.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 5,918 shares of company stock worth $1,862,485 in the last 90 days. Insiders own 0.26% of the company's stock.

McDonald's Trading Up 0.5%

MCD stock opened at $279.42 on Friday. The stock has a 50-day moving average price of $295.34 and a two-hundred day moving average price of $308.57. McDonald's Corporation has a 12-month low of $271.98 and a 12-month high of $341.75. The company has a market cap of $198.53 billion, a PE ratio of 23.04, a price-to-earnings-growth ratio of 2.77 and a beta of 0.43.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly 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. The firm had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The firm's quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.67 earnings per share. Equities analysts forecast that McDonald's Corporation will post 12.93 EPS for the current fiscal year.

McDonald's Dividend Announcement

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

About McDonald's

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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