KFA Private Wealth Group LLC Purchases New Position in McDonald's Corporation (NYSE:MCD)

Key Points

• KFA Private Wealth Group LLC has acquired a new position in McDonald's Corporation, purchasing 1,688 shares valued at approximately $527,000.
• McDonald's recent quarterly earnings showed an EPS of $2.67, meeting analyst estimates, but the company's revenue fell short at $5.96 billion compared to expectations of $6.17 billion.
• The company declared a quarterly dividend of $1.77 per share, reflecting an annualized payout of $7.08 and a yield of 2.37%, scheduled for payment on September 16th.

KFA Private Wealth Group LLC purchased a new stake in McDonald's Corporation (NYSE:MCD - Free Report) during the first quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 1,688 shares of the fast-food giant's stock, valued at approximately $527,000.

Other large investors have also recently added to or reduced their stakes in the company. Granite Bay Wealth Management LLC raised its holdings in McDonald's by 3.5% in the first quarter. Granite Bay Wealth Management LLC now owns 988 shares of the fast-food giant's stock valued at $309,000 after buying an additional 33 shares during the period. CVA Family Office LLC raised its holdings in McDonald's by 1.9% in the first quarter. CVA Family Office LLC now owns 1,793 shares of the fast-food giant's stock valued at $560,000 after buying an additional 33 shares during the period. Consilium Wealth Advisory LLC raised its holdings in McDonald's by 2.5% in the first quarter. Consilium Wealth Advisory LLC now owns 1,334 shares of the fast-food giant's stock valued at $417,000 after buying an additional 33 shares during the period. Security Financial Services INC. raised its holdings in McDonald's by 0.7% in the first quarter. Security Financial Services INC. now owns 5,043 shares of the fast-food giant's stock valued at $1,575,000 after buying an additional 33 shares during the period. Finally, Northeast Financial Consultants Inc raised its holdings in McDonald's by 0.5% in the fourth quarter. Northeast Financial Consultants Inc now owns 7,486 shares of the fast-food giant's stock valued at $2,170,000 after buying an additional 34 shares during the period. 70.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on MCD shares. Barclays raised their price target on shares of McDonald's from $347.00 to $355.00 and gave the company an "overweight" rating in a report on Friday, May 2nd. Argus lowered shares of McDonald's from a "buy" rating to a "hold" rating in a report on Friday, June 13th. Bank of America cut their price target on shares of McDonald's from $327.00 to $322.00 and set a "neutral" rating on the stock in a report on Friday, July 18th. Northcoast Research lowered shares of McDonald's from a "buy" rating to a "neutral" rating in a research note on Tuesday, May 6th. Finally, Truist Financial lifted their price objective on shares of McDonald's from $350.00 to $356.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Two research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and thirteen have assigned a buy rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $323.39.

Insider Activity

In other news, insider Joseph M. Erlinger sold 939 shares of the company's stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total value of $281,221.11. Following the transaction, the insider owned 9,283 shares in the company, valued at $2,780,165.67. This represents a 9.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CMO Edith Morgan Flatley sold 1,000 shares of the company's stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $300.00, for a total value of $300,000.00. Following the completion of the transaction, 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. Over the last quarter, insiders sold 3,817 shares of company stock worth $1,147,992. 0.25% of the stock is owned by company insiders.

McDonald's Stock Performance

Shares of MCD traded down $1.79 during midday trading on Thursday, hitting $301.83. 1,407,990 shares of the stock traded hands, compared to its average volume of 3,581,698. McDonald's Corporation has a 1-year low of $262.40 and a 1-year high of $326.32. The business's 50 day moving average price is $299.96 and its two-hundred day moving average price is $303.25. The firm has a market capitalization of $215.81 billion, a PE ratio of 26.66, a price-to-earnings-growth ratio of 3.17 and a beta of 0.53.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Thursday, May 1st. The fast-food giant reported $2.67 EPS for the quarter, hitting the consensus estimate of $2.67. McDonald's had a net margin of 31.75% and a negative return on equity of 195.27%. The firm had revenue of $5.96 billion for the quarter, compared to analysts' expectations of $6.17 billion. During the same period in the previous year, the business earned $2.70 earnings per share. McDonald's's revenue for the quarter was down 3.5% compared to the same quarter last year. As a group, equities research analysts forecast that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be given a $1.77 dividend. This represents a $7.08 annualized dividend and a yield of 2.35%. The ex-dividend date of this dividend is Tuesday, September 2nd. McDonald's's dividend payout ratio (DPR) is presently 62.49%.

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.