Lord Abbett & CO. LLC Sells 105,445 Shares of McDonald's Corporation $MCD

Key Points

• Lord Abbett & Co. LLC cut its McDonald’s stake by 27.4% in the fourth quarter, selling 105,445 shares and leaving it with 279,640 shares valued at about $85.5 million.
• McDonald’s posted better-than-expected quarterly results, with EPS of $2.83 beating estimates and revenue of $6.52 billion topping forecasts; revenue rose 9.4% from a year earlier.
• The company continues to return cash to shareholders with a quarterly dividend of $1.86 per share, equal to $7.44 annually and a 2.6% yield, even as insiders have sold shares recently.

Lord Abbett & CO. LLC reduced its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 27.4% in the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 279,640 shares of the fast-food giant's stock after selling 105,445 shares during the quarter. Lord Abbett & CO. LLC's holdings in McDonald's were worth $85,466,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. Vanguard Group Inc. increased its stake in McDonald's by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock valued at $22,112,675,000 after purchasing an additional 703,458 shares in the last quarter. State Street Corp increased its stake in McDonald's by 0.6% during the 3rd quarter. State Street Corp now owns 35,024,857 shares of the fast-food giant's stock valued at $10,643,704,000 after purchasing an additional 196,505 shares in the last quarter. Geode Capital Management LLC increased its stake in McDonald's by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock valued at $5,195,965,000 after purchasing an additional 76,090 shares in the last quarter. Norges Bank purchased a new stake in shares of McDonald's during the 4th quarter valued at about $2,890,438,000. Finally, Bank of New York Mellon Corp boosted its holdings in shares of McDonald's by 0.8% during the 4th quarter. Bank of New York Mellon Corp now owns 5,283,655 shares of the fast-food giant's stock valued at $1,614,843,000 after acquiring an additional 40,506 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.

McDonald's Trading Up 0.0%

MCD opened at $284.88 on Friday. The company has a market cap of $202.41 billion, a price-to-earnings ratio of 23.49, a PEG ratio of 2.84 and a beta of 0.41. The company's 50 day moving average is $289.38 and its 200 day moving average is $306.75. McDonald's Corporation has a 12-month low of $271.85 and a 12-month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same quarter last year, the firm posted $2.67 earnings per share. The firm's revenue was up 9.4% compared to the same quarter last year. As a group, analysts predict that McDonald's Corporation will post 12.93 EPS for the current fiscal year.

McDonald's Announces Dividend

The company also recently declared 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 annualized dividend and a yield of 2.6%. McDonald's's payout ratio is currently 61.34%.

Insider Activity at McDonald's

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction that occurred 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 transaction, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction that occurred 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 transaction, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 11,307 shares of company stock worth $3,262,622 in the last ninety days. Insiders own 0.26% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on MCD. Erste Group Bank downgraded shares of McDonald's from a "buy" rating to a "hold" rating in a report on Monday, April 27th. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a report on Friday. Cfra raised shares of McDonald's to a "buy" rating in a report on Friday, May 8th. Robert W. Baird set a $305.00 price target on shares of McDonald's in a report on Thursday, May 7th. Finally, BTIG Research reaffirmed a "buy" rating and set a $370.00 price target on shares of McDonald's in a report on Thursday, May 7th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $336.26.

Key Stories 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?

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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