Interval Partners LP Makes New Investment in McDonald's Corporation $MCD

Key Points

• Interval Partners LP initiated a new position in McDonald’s during the fourth quarter, buying 73,725 shares worth about $22.5 million.
• McDonald’s reported better-than-expected Q1 results, with EPS of $2.83 topping estimates and revenue of $6.52 billion, up 9.4% from a year earlier.
• The company also paid a $1.86 quarterly dividend, equal to an annualized yield of about 2.6%, while analysts currently rate the stock Moderate Buy with a consensus target of $336.26.

Interval Partners LP purchased a new position in shares of McDonald's Corporation (NYSE:MCD - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 73,725 shares of the fast-food giant's stock, valued at approximately $22,533,000.

Several other hedge funds also recently modified their holdings of MCD. Peterson Wealth Services boosted its position in shares of McDonald's by 3,294.5% in the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant's stock worth $3,600,000 after acquiring an additional 11,432 shares during the last quarter. Harbour Investments Inc. boosted its position in shares of McDonald's by 84.4% in the fourth quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock worth $10,853,000 after acquiring an additional 16,252 shares during the last quarter. Capital International Sarl boosted its position in shares of McDonald's by 10.4% in the fourth quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant's stock worth $19,639,000 after acquiring an additional 6,079 shares during the last quarter. North Dakota State Investment Board acquired a new stake in shares of McDonald's in the fourth quarter worth approximately $7,493,000. Finally, Pittenger & Anderson Inc. boosted its position in shares of McDonald's by 21.9% in the fourth quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock worth $6,567,000 after acquiring an additional 3,866 shares during the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

Insider Activity at McDonald's

In related news, insider Joseph M. Erlinger sold 5,252 shares of the firm'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 transaction, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 11,307 shares of company stock worth $3,262,622 in the last 90 days. 0.26% of the stock is currently owned by insiders.

Trending Headlines about 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 Stock Performance

NYSE MCD opened at $284.16 on Thursday. McDonald's Corporation has a one year low of $271.85 and a one year high of $341.75. The company's 50 day moving average price is $288.07 and its 200 day moving average price is $306.22. The firm has a market capitalization of $201.90 billion, a price-to-earnings ratio of 23.43, a PEG ratio of 2.87 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 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 for the quarter, compared to analyst estimates of $6.47 billion. During the same quarter last year, the firm posted $2.67 earnings per share. McDonald's's revenue for the quarter was up 9.4% compared to the same quarter last year. Sell-side analysts forecast that McDonald's Corporation will post 12.93 EPS for the current fiscal year.

McDonald's Dividend Announcement

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

Analyst Ratings Changes

MCD has been the topic of several research analyst reports. TD Cowen reissued a "hold" rating on shares of McDonald's in a research report on Friday, June 12th. Erste Group Bank cut shares of McDonald's from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Barclays decreased their target price on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. Robert W. Baird set a $305.00 target price on shares of McDonald's in a research report on Thursday, May 7th. Finally, Cfra raised shares of McDonald's to a "buy" rating in a research report on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target 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.

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