Legato Capital Management LLC Invests $2.14 Million in McDonald's Corporation $MCD

Key Points

• Legato Capital Management opened a new position in McDonald’s during the fourth quarter, buying 7,000 shares worth about $2.14 million.
• McDonald’s recently reported better-than-expected quarterly results, with EPS of $2.83 and revenue of $6.52 billion, both topping analyst estimates and up 9.4% from a year earlier.
• The company also announced a quarterly dividend of $1.86 per share, or $7.44 annualized, while analysts currently rate the stock a Moderate Buy with an average target price of $334.45.

Legato Capital Management LLC bought a new position in shares of McDonald's Corporation (NYSE:MCD - Free Report) during the 4th quarter, according to its most recent 13F filing with the SEC. The fund bought 7,000 shares of the fast-food giant's stock, valued at approximately $2,139,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in MCD. Pittenger & Anderson Inc. grew its holdings in shares of McDonald's by 21.9% during the fourth quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock valued at $6,567,000 after buying an additional 3,866 shares during the last quarter. North Dakota State Investment Board purchased a new stake in shares of McDonald's during the fourth quarter valued at $7,493,000. Schroder Investment Management Group grew its holdings in shares of McDonald's by 5.2% during the third quarter. Schroder Investment Management Group now owns 1,029,572 shares of the fast-food giant's stock valued at $312,877,000 after buying an additional 51,039 shares during the last quarter. National Pension Service grew its holdings in shares of McDonald's by 2.5% during the third quarter. National Pension Service now owns 1,533,015 shares of the fast-food giant's stock valued at $465,868,000 after buying an additional 37,744 shares during the last quarter. Finally, Abich Financial Wealth Management LLC purchased a new stake in shares of McDonald's during the third quarter valued at $1,697,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald's News Roundup

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

• Positive Sentiment: McDonald's declared a quarterly cash dividend of $1.86 per share, reinforcing its appeal as a dependable income stock and signaling ongoing confidence in cash generation. McDONALD'S ANNOUNCES QUARTERLY CASH DIVIDEND
• Positive Sentiment: Coverage highlighted McDonald's efforts to refresh its menu and customer experience, including new beverage additions, AI-driven drive-thru concepts, and other innovation-focused changes that could support traffic and sales. McDonald’s CEO shares major beverage menu additions
• Neutral Sentiment: McDonald's confirmed plans for a restaurant in historic Castlemaine, a small expansion item that is unlikely to materially move the stock on its own. McDonald's confirms plan for restaurant in historic Castlemaine
• Neutral Sentiment: Analyst commentary suggested McDonald's investment story is shifting as growth and valuation expectations are reset, which reflects changing sentiment rather than a clear operational surprise. Why The McDonald's (MCD) Investment Story Is Shifting As Analysts Reset Growth And Valuation
• Negative Sentiment: Articles about “shrinkflation” and smaller McNuggets could pressure sentiment if consumers view McDonald's as offering less value, potentially weighing on brand perception. Shrinkflation hits McDonald's as customers say McNuggets are half the size they used to be
• Negative Sentiment: Coverage noting that customers are divided on McDonald's specialty drinks suggests product experimentation may not be universally resonating yet. Why McDonald's Customers Are Divided On Its Specialty Drinks

McDonald's Stock Down 0.6%

Shares of MCD opened at $282.48 on Friday. McDonald's Corporation has a 52 week low of $271.98 and a 52 week high of $341.75. The company has a market capitalization of $200.70 billion, a price-to-earnings ratio of 23.29, a PEG ratio of 2.81 and a beta of 0.43. The stock's 50-day moving average price is $299.71 and its 200-day moving average price is $309.25.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same quarter in the prior year, the business earned $2.67 earnings per share. The company's revenue was up 9.4% compared to the same quarter last year. As a group, equities analysts anticipate that McDonald's Corporation will post 12.93 EPS for the current fiscal year.

McDonald's Dividend Announcement

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

Insider Activity

In other news, EVP Jonathan Banner sold 6,201 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the sale, the executive vice president directly owned 2,291 shares of the company's stock, valued at $763,567.39. This represents a 73.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Joseph M. Erlinger sold 333 shares of the stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $302.72, for a total transaction of $100,805.76. Following the sale, the insider directly owned 8,067 shares in the company, valued at approximately $2,442,042.24. The trade was a 3.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 12,119 shares of company stock worth $3,945,973. Corporate insiders own 0.26% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on MCD. Barclays dropped their price objective 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. 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 report on Thursday, February 12th. Argus raised shares of McDonald's from a "hold" rating to a "buy" rating and set a $380.00 price target on the stock in a report on Friday, February 13th. Evercore set a $350.00 price target on shares of McDonald's in a report on Friday, May 8th. Finally, BTIG Research restated a "buy" rating and issued a $370.00 target price on shares of McDonald's in a research note on Thursday, May 7th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $334.45.

About McDonald's

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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