KLCM Advisors Inc. Purchases 3,697 Shares of McDonald's Corporation $MCD

Key Points

• KLCM Advisors Inc. boosted its McDonald’s position by 107.1% in the fourth quarter, buying 3,697 more shares and bringing its total holding to 7,148 shares valued at about $2.19 million.
• McDonald’s beat quarterly expectations, reporting EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion, with revenue rising 9.4% year over year.
• Analyst sentiment remains mostly positive, with several firms raising price targets and McDonald’s carrying a “Moderate Buy” consensus rating and an average target price of $334.45.

KLCM Advisors Inc. increased its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 107.1% in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 7,148 shares of the fast-food giant's stock after acquiring an additional 3,697 shares during the quarter. KLCM Advisors Inc.'s holdings in McDonald's were worth $2,185,000 as of its most recent SEC filing.

Other large investors have also recently modified their holdings of the company. Evergreen Private Wealth LLC raised its stake in shares of McDonald's by 162.5% during the 3rd quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant's stock worth $26,000 after acquiring an additional 52 shares in the last quarter. Your Advocates Ltd. LLP acquired a new position in McDonald's during the 4th quarter valued at approximately $27,000. Park Place Capital Corp increased its stake in McDonald's by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after purchasing an additional 45 shares in the last quarter. DecisionPoint Financial LLC increased its stake in McDonald's by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after purchasing an additional 97 shares in the last quarter. Finally, Painted Porch Advisors LLC increased its stake in McDonald's by 735.7% during the 3rd quarter. Painted Porch Advisors LLC now owns 117 shares of the fast-food giant's stock valued at $36,000 after purchasing an additional 103 shares in the last quarter. Institutional investors own 70.29% of the company's stock.

McDonald's Stock Performance

Shares of NYSE MCD opened at $274.36 on Tuesday. The company's fifty day moving average price is $309.05 and its 200 day moving average price is $310.94. McDonald's Corporation has a 1 year low of $271.98 and a 1 year high of $341.75. The company has a market capitalization of $194.93 billion, a PE ratio of 22.62, a price-to-earnings-growth ratio of 2.58 and a beta of 0.43.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the prior year, the firm posted $2.67 earnings per share. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. On average, equities analysts expect that McDonald's Corporation will post 13.04 EPS for the current year.

Wall Street Analyst Weigh In

MCD has been the topic of a number of recent analyst reports. Evercore set a $350.00 price target on shares of McDonald's in a research note on Friday. Argus upgraded shares of McDonald's from a "hold" rating to a "buy" rating and set a $380.00 price target on the stock in a research note on Friday, February 13th. Cfra upgraded shares of McDonald's to a "buy" rating in a research note on Friday. Tigress Financial upped their price target on shares of McDonald's from $360.00 to $385.00 and gave the company a "buy" rating in a research note on Friday, March 6th. Finally, Citigroup upped their price target on shares of McDonald's from $371.00 to $375.00 and gave the company a "buy" rating in a research note on Thursday, February 12th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, McDonald's has an average rating of "Moderate Buy" and an average price target of $334.45.

Insider Activity

In related news, CEO Christopher J. Kempczinski sold 26,276 shares of the stock in a transaction on Friday, February 13th. The shares were sold at an average price of $333.54, for a total transaction of $8,764,097.04. Following the sale, the chief executive officer directly owned 22,900 shares of the company's stock, valued at approximately $7,638,066. This represents a 53.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CMO Edith Morgan Flatley sold 4,692 shares of the stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $331.00, for a total transaction of $1,553,052.00. Following the sale, the chief marketing officer directly owned 6,200 shares in the company, valued at $2,052,200. This trade represents a 43.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 69,364 shares of company stock valued at $22,970,006. 0.26% of the stock is currently owned by corporate insiders.

More McDonald's News

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

• Positive Sentiment: UBS said McDonald's is poised for underlying momentum, with U.S. and global market share gains likely despite macro headwinds. McDonald's Poised for Market Share Gains Despite Macro Headwinds, UBS Says
• Positive Sentiment: Reports on McDonald’s value strategy suggest the new Extra Value Menu is outperforming expectations and helping franchisees, reinforcing the view that affordability is supporting traffic. McDonald’s New Extra Value Menu Is Beating Expectations — And Franchisees Are Seeing the Value
• Positive Sentiment: Commentary from investors and analysts continues to frame McDonald's as a defensive value-oriented fast-food name, which may help support the stock if consumers keep trading down from pricier rivals. Shake Shack Stock Looks Ugly After Earnings. Burger Eaters Were Opting for Value Instead
• Neutral Sentiment: Some articles focused on brand nostalgia, menu hacks, and breakfast items, but these are unlikely to materially affect the stock in the near term.
• Neutral Sentiment: McDonald’s continued modernization efforts, including phasing out self-serve soda machines, point to ongoing operational changes but do not by themselves change the investment thesis.
• Negative Sentiment: JPMorgan cut its price target on McDonald’s to $305 from $325, and TD Cowen also lowered its target, adding to worries that same-store sales could be stalling. JPMorgan Cuts McDonald's Price Target to $305: Is the Same-Store-Sales Story Stalling?
• Negative Sentiment: Investor concern is rising that higher gas prices and a broader consumer spending pullback could weaken demand among lower-income diners, which could pressure traffic and sales. McDonald's focus on value lifts sales, but says gas prices could dent demand

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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