Keystone Investors PTE Ltd. Invests $9.62 Million in McDonald's Corporation $MCD

Key Points

• Keystone Investors PTE Ltd. initiated a new position in McDonald's during the fourth quarter, buying 31,480 shares valued at about $9.62 million. The stake represents 0.9% of its holdings and is its 27th-largest position.
• McDonald's recently posted solid operating results, with EPS of $2.83 topping estimates and revenue of $6.52 billion also beating expectations. The company said revenue rose 9.4% year over year, and management highlighted strong global comparable sales and loyalty-driven demand in recent coverage.
• The stock continues to attract institutional interest and pays a quarterly dividend of $1.86 per share, equal to an annualized yield of about 2.6%. However, insider selling and some concerns around AI drive-thru changes and workplace safety have created a bit of headline risk.

Keystone Investors PTE Ltd. bought a new position in McDonald's Corporation (NYSE:MCD - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 31,480 shares of the fast-food giant's stock, valued at approximately $9,621,000. McDonald's comprises 0.9% of Keystone Investors PTE Ltd.'s holdings, making the stock its 27th largest holding.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Wealthspire Advisors LLC boosted its stake in shares of McDonald's by 4.0% in the 4th quarter. Wealthspire Advisors LLC now owns 22,251 shares of the fast-food giant's stock worth $6,801,000 after buying an additional 861 shares during the last quarter. Atalanta Sosnoff Capital LLC raised its holdings in shares of McDonald's by 60.3% in the 4th quarter. Atalanta Sosnoff Capital LLC now owns 194,919 shares of the fast-food giant's stock worth $59,573,000 after purchasing an additional 73,331 shares during the period. Macquarie Group Ltd. raised its holdings in shares of McDonald's by 11.5% in the 4th quarter. Macquarie Group Ltd. now owns 74,557 shares of the fast-food giant's stock worth $22,787,000 after purchasing an additional 7,686 shares during the period. Gerber Kawasaki Wealth & Investment Management raised its holdings in shares of McDonald's by 3.2% in the 4th quarter. Gerber Kawasaki Wealth & Investment Management now owns 1,678 shares of the fast-food giant's stock worth $513,000 after purchasing an additional 52 shares during the period. Finally, Westchester Capital Management Inc. raised its holdings in shares of McDonald's by 0.6% in the 4th quarter. Westchester Capital Management Inc. now owns 51,662 shares of the fast-food giant's stock worth $15,789,000 after purchasing an additional 291 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: Commentary highlighted McDonald’s as a “rare mega-cap” with accelerating fundamentals, citing 3.8% global comparable sales growth, more than $9 billion in loyalty sales over 90 days, and 9.4% year-over-year revenue growth, which supports the bull case for the stock. McDonald’s Will Trade at This Price in 2028
• Positive Sentiment: McDonald’s is testing AI-powered drive-thru ordering, and early results from a million orders appear promising; if rolled out successfully, this could improve efficiency and margins over time. McDonald’s Is Letting AI Take Your Orders Again. A Million Orders Later, the Results Look Promising.
• Positive Sentiment: Promotional activity tied to FIFA World Cup meals, collectible cups, and Squishmallows could help drive customer traffic and add some sales momentum. McDonald's FIFA World Cup meals with Squishmallows and 9 collectible cups are here
• Neutral Sentiment: Analyst and investor commentary remains generally supportive, with reports noting McDonald’s continues to attract attention as a defensive, widely followed stock. McDonald's Corporation (MCD) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Insider selling by executive Joseph Erlinger may weigh on sentiment slightly, even though such sales do not necessarily reflect a change in business outlook. Joseph Erlinger Sells 5,252 Shares of McDonald's NYSE: MCD Stock
• Negative Sentiment: Some recent coverage has also raised concerns about customer pushback on operational changes and workplace safety issues, which could create headline risk if they persist. Should McDonald’s AI Drive Thru Push and Safety Scrutiny Require Action From McDonald’s (MCD) Investors?

McDonald's Price Performance

Shares of MCD stock opened at $284.88 on Friday. The company's fifty day simple moving average is $289.38 and its two-hundred day simple moving average is $306.75. McDonald's Corporation has a 1 year low of $271.85 and a 1 year high of $341.75. The stock has a market capitalization of $202.41 billion, a price-to-earnings ratio of 23.49, a PEG ratio of 2.84 and a beta of 0.41.

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 analysts' expectations of $6.47 billion. During the same quarter in the previous year, the firm posted $2.67 EPS. The business's revenue for the quarter was up 9.4% compared to the same quarter last year. Equities research analysts anticipate that McDonald's Corporation will post 12.93 EPS for the current year.

McDonald's Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd will be issued a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.6%. McDonald's's payout ratio is presently 61.34%.

Insiders Place Their Bets

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of the business's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction 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 sale, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 11,307 shares of company stock worth $3,262,622 in the last three months. Insiders own 0.26% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on MCD shares. Barclays lowered their price target on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Royal Bank Of Canada lowered their price target on shares of McDonald's from $330.00 to $305.00 and set a "sector perform" rating on the stock in a report on Friday, May 8th. Cfra raised shares of McDonald's to a "buy" rating in a report on Friday, May 8th. 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. Finally, Erste Group Bank cut shares of McDonald's from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, McDonald's presently 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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