J. Stern & Co. LLP Acquires 3,275 Shares of McDonald's Corporation $MCD

Key Points

• J. Stern & Co. LLP increased its stake in McDonald's Corporation by 37.2%, owning a total of 12,081 shares valued at approximately $3.77 million as of the end of the recent quarter.
• McDonald's recently reported quarterly earnings of $3.19 per share, surpassing analysts' estimates, with a revenue of $6.84 billion, marking a 5.4% increase compared to the previous year.
• The company announced a quarterly dividend of $1.77 per share, with a projected annual yield of 2.3%, and a dividend payout ratio of 60.67%.

J. Stern & Co. LLP boosted its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 37.2% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 12,081 shares of the fast-food giant's stock after purchasing an additional 3,275 shares during the period. McDonald's comprises about 0.4% of J. Stern & Co. LLP's investment portfolio, making the stock its 23rd biggest position. J. Stern & Co. LLP's holdings in McDonald's were worth $3,774,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of MCD. Mascagni Wealth Management Inc. acquired a new position in shares of McDonald's during the fourth quarter worth approximately $25,000. Abound Financial LLC acquired a new position in McDonald's in the first quarter valued at approximately $30,000. Pinney & Scofield Inc. acquired a new position in McDonald's in the fourth quarter valued at approximately $29,000. Redmont Wealth Advisors LLC acquired a new position in McDonald's in the first quarter valued at approximately $31,000. Finally, Financial Gravity Asset Management Inc. acquired a new position in McDonald's in the first quarter valued at approximately $31,000. 70.29% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on MCD shares. JPMorgan Chase & Co. increased their price objective on shares of McDonald's from $305.00 to $310.00 and gave the company an "overweight" rating in a report on Thursday, August 7th. Stifel Nicolaus raised their price objective on shares of McDonald's from $300.00 to $315.00 and gave the stock a "hold" rating in a report on Friday, August 22nd. BMO Capital Markets restated an "outperform" rating and set a $350.00 price objective (up from $345.00) on shares of McDonald's in a report on Thursday, August 7th. Robert W. Baird raised their price objective on shares of McDonald's from $300.00 to $315.00 and gave the stock a "neutral" rating in a report on Friday, May 2nd. Finally, Argus lowered shares of McDonald's from a "buy" rating to a "hold" rating in a report on Friday, June 13th. Thirteen analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $326.38.

McDonald's Trading Up 0.3%

Shares of McDonald's stock traded up $0.88 during trading on Thursday, hitting $312.31. 3,470,542 shares of the stock were exchanged, compared to its average volume of 3,497,968. The stock has a market capitalization of $222.87 billion, a price-to-earnings ratio of 26.76, a price-to-earnings-growth ratio of 3.17 and a beta of 0.52. The company has a fifty day moving average price of $300.68 and a 200-day moving average price of $306.17. McDonald's Corporation has a 1-year low of $276.53 and a 1-year high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share for the quarter, topping the consensus estimate of $3.15 by $0.04. The company had revenue of $6.84 billion for the quarter, compared to analyst estimates of $6.68 billion. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. McDonald's's revenue for the quarter was up 5.4% compared to the same quarter last year. During the same period in the previous year, the business earned $2.97 EPS. Equities research analysts forecast that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be given a dividend of $1.77 per share. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Tuesday, September 2nd. McDonald's's dividend payout ratio is presently 60.67%.

Insider Buying and Selling at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,487 shares of the stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $310.00, for a total transaction of $770,970.00. Following the sale, the executive vice president owned 8,754 shares in the company, valued at approximately $2,713,740. This trade represents a 22.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CMO Edith Morgan Flatley sold 1,000 shares of the stock in a transaction that occurred on Thursday, July 10th. The stock was sold at an average price of $300.00, for a total transaction of $300,000.00. Following the sale, the chief marketing officer owned 8,858 shares in the company, valued at $2,657,400. This represents a 10.14% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 7,341 shares of company stock worth $2,229,327. 0.25% of the stock is currently owned by company insiders.

About McDonald's

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.