Kornitzer Capital Management Inc. KS Purchases 8,255 Shares of McDonald's Corporation $MCD

Key Points

• Kornitzer Capital Management increased its McDonald’s stake by 23.1% in the second quarter, purchasing 8,255 shares and bringing its total holdings to 44,068 shares worth approximately $11.9 million.
• McDonald’s reported quarterly EPS of $3.38, beating estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion but fell slightly short of expectations.
• The stock was trading near $265.43, down 2.7%, with analysts maintaining a “Moderate Buy” consensus and an average price target of $325.44. McDonald’s also declared a quarterly dividend of $1.86, equivalent to a 2.8% annual yield.

Kornitzer Capital Management Inc. KS boosted its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 23.1% in the second quarter, according to its most recent filing with the SEC. The institutional investor owned 44,068 shares of the fast-food giant's stock after buying an additional 8,255 shares during the period. Kornitzer Capital Management Inc. KS's holdings in McDonald's were worth $11,912,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Your Advocates Ltd. LLP bought a new position in shares of McDonald's in the fourth quarter worth about $27,000. IFC & Insurance Marketing Inc. purchased a new stake in shares of McDonald's during the fourth quarter worth about $29,000. Abound Financial LLC bought a new stake in McDonald's during the 4th quarter valued at approximately $30,000. DecisionPoint Financial LLC lifted its holdings in McDonald's by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock worth $31,000 after purchasing an additional 97 shares in the last quarter. Finally, Entrust Financial LLC purchased a new position in McDonald's in the 4th quarter worth approximately $31,000. 70.29% of the stock is owned by institutional investors.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s is taking direct aim at Starbucks with a menu strategy focused on afternoon traffic. Expanded beverage and snack offerings could help the company capture additional dayparts and improve sales momentum. McDonald's Takes Direct Aim at Starbucks
• Positive Sentiment: New limited-time fall drinks and other menu items, along with the Hello Kitty and Godzilla Happy Meal promotion, could support customer visits and boost seasonal sales. McDonald's Has 4 New Limited-Time Menu Items
• Positive Sentiment: An app that helps restaurants fill open shifts has reportedly reduced the cost of missed shifts at one McDonald’s location. If scalable, better staffing could improve service consistency, labor efficiency, and restaurant-level profitability. Missed shifts were costly to this McDonald's
• Positive Sentiment: A bullish analyst cited a consensus price target substantially above the current trading level, arguing that MCD could offer significant upside after its recent decline. This is supportive sentiment, though targets remain estimates rather than catalysts. McDonald's Keeps Cratering
• Neutral Sentiment: Xbox-related in-game rewards and other international or promotional menu stories increase brand engagement but are unlikely to materially change near-term earnings expectations. Xbox 25th Anniversary McDonald's Rewards
• Neutral Sentiment: One valuation review described MCD as roughly fairly valued on a discounted-cash-flow basis, while market multiples suggested modest undervaluation. The assessment offers some downside support but acknowledges weaker recent U.S. sales growth. McDonald's Stock Looks Fairly Valued
• Negative Sentiment: Commentary on McDonald’s latest earnings characterized the results and execution as underwhelming, reinforcing concerns about soft same-store sales and the effectiveness of recent initiatives. Jim Cramer Breaks Down McDonald's Earnings
• Negative Sentiment: Former Taco Bell executive Greg Creed criticized McDonald’s Red Bull beverage strategy, raising questions about product-market fit and whether the new drinks will meaningfully improve afternoon demand. Taco Bell's Former Boss Criticizes McDonald's Red Bull Drink

McDonald's Trading Down 2.7%

NYSE:MCD opened at $265.43 on Tuesday. The business's 50-day moving average is $273.56 and its 200 day moving average is $294.81. McDonald's Corporation has a 12 month low of $260.96 and a 12 month high of $341.75. The company has a market capitalization of $187.83 billion, a P/E ratio of 21.56, a P/E/G ratio of 3.05 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.06. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The business had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.13 billion. During the same quarter last year, the business posted $3.19 EPS. The firm's revenue for the quarter was up 3.7% compared to the same quarter last year. On average, research analysts forecast that McDonald's Corporation will post 12.88 earnings per share for the current year.

McDonald's Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be issued a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. McDonald's's dividend payout ratio (DPR) is 60.44%.

Wall Street Analyst Weigh In

MCD has been the subject of several recent analyst reports. Piper Sandler set a $286.00 price target on McDonald's in a research note on Tuesday, August 4th. Robert W. Baird reduced their price objective on shares of McDonald's from $305.00 to $285.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 5th. Citigroup boosted their target price on shares of McDonald's from $335.00 to $345.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Tigress Financial upped their target price on shares of McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a research report on Friday, July 17th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating and set a $295.00 target price on shares of McDonald's in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $325.44.

Insiders Place Their Bets

In related 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 value of $1,493,248.64. Following the sale, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction on 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 in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 8,348 shares of company stock valued at $2,355,634. 0.26% of the stock is currently owned by insiders.

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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