J. Stern & Co. LLP Raises Stock Holdings in McDonald's Corporation $MCD

Key Points

• J. Stern & Co. LLP sharply increased its McDonald’s stake in the fourth quarter, lifting holdings by 9,867.5% to 2.54 million shares worth about $776.6 million. McDonald’s became its 28th largest position and accounted for roughly 0.2% of the fund’s portfolio.
• McDonald’s recently reported solid quarterly results, beating earnings and revenue estimates with EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion versus $6.47 billion expected. Revenue rose 9.4% year over year, and analysts now expect full-year EPS of 12.93.
• The company continues to pay a sizable dividend and attract analyst support, with a quarterly payout of $1.86 per share, a 2.6% yield, and a 61.34% payout ratio. Wall Street currently rates the stock a “Moderate Buy,” with an average price target of $336.26.

J. Stern & Co. LLP lifted its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 9,867.5% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,541,008 shares of the fast-food giant's stock after acquiring an additional 2,515,515 shares during the quarter. McDonald's accounts for about 0.2% of J. Stern & Co. LLP's holdings, making the stock its 28th largest position. J. Stern & Co. LLP owned about 0.36% of McDonald's worth $776,608,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Peterson Wealth Services increased its position in 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 buying an additional 11,432 shares during the last quarter. Harbour Investments Inc. increased its position in 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 buying an additional 16,252 shares during the last quarter. Capital International Sarl increased its position in 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 buying an additional 6,079 shares during the last quarter. North Dakota State Investment Board purchased a new stake in McDonald's in the fourth quarter worth $7,493,000. Finally, Pittenger & Anderson Inc. increased its position in 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 buying an additional 3,866 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald's Stock Performance

NYSE:MCD opened at $287.99 on Wednesday. The firm has a market capitalization of $204.62 billion, a price-to-earnings ratio of 23.74, a P/E/G ratio of 2.85 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. The stock has a fifty day moving average of $288.58 and a 200 day moving average of $306.42.

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

McDonald's Dividend Announcement

The company 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 of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.6%. McDonald's's payout ratio is 61.34%.

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 for America’s 250th birthday, a nostalgic limited-time item that could help drive traffic and sales while generating a lot of consumer buzz. AP News - McDonald’s is serving fried apple pie again for America’s 250th birthday
• Positive Sentiment: The company is also being highlighted for bringing back other fan-favorite menu items after decades away, reinforcing the view that McDonald’s is using nostalgia-based offerings to support customer engagement. Article - McDonald's Is Bringing Back a Highly Requested Menu Item for the First Time in Over 30 Years
• Positive Sentiment: McDonald’s is testing expanded beverage options, including custom sodas, refreshers and Red Bull-based drinks, which could open a new source of incremental sales and improve ticket size. Yahoo Finance - McDonald's 70-Year Coke Alliance Enters New Beverage Test
• Neutral Sentiment: Several stories focus on McDonald’s brand strength, including celebrity mentions and “coolest locations” lists, which are good for visibility but likely have limited direct impact on earnings. Article - Tina Fey Loves This McDonald’s Menu Item So Much, She Walked Down the Highway in Italy To Order It
• Neutral Sentiment: The company is also making operational changes, including rebuilding a classic Gahanna location with a modern look and altering drive-thru features, but these are more incremental than transformative. AOL - McDonald’s to demolish classic Gahanna location and rebuild it with modern look
• Negative Sentiment: One article about a possible $1 drive-thru fee and another criticizing the chain’s ice cream machine reliability could add to customer frustration and pressure sentiment, even if the financial impact is unclear. Article - Is McDonald’s adding a $1 fee to drive-thru orders? Customers want answers
• Negative Sentiment: Coverage that McCrispy Strips are being revamped after customer criticism suggests McDonald’s is responding to product complaints, which may weigh slightly on sentiment around menu execution. AOL - McDonald’s to Revamp McCrispy Strips After Customer Criticism

Insider Activity

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares of the company's stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety 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 Analyst Weigh In

MCD has been the subject of a number of recent research reports. TD Cowen reissued a "hold" rating on shares of McDonald's in a research report on Friday. KeyCorp cut their price target on McDonald's from $345.00 to $330.00 and set an "overweight" rating for the company in a report on Friday, May 8th. JPMorgan Chase & Co. cut their price target on McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a report on Monday, May 11th. Robert W. Baird set a $305.00 price target on McDonald's in a report on Thursday, May 7th. Finally, BTIG Research reaffirmed a "buy" rating and issued a $370.00 price target on shares of McDonald's in a report on Thursday, May 7th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $336.26.

McDonald's Company 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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