Louisiana State Employees Retirement System Acquires Shares of 36,300 McDonald's Corporation $MCD

Key Points

• Louisiana State Employees Retirement System opened a new position in McDonald’s during the first quarter, buying 36,300 shares valued at about $11.28 million.
• McDonald’s continues to attract major institutional interest, with hedge funds and other investors owning 70.29% of the company’s stock. Several large holders, including Norges Bank and Viking Global Investors, also increased their stakes recently.
• The stock has been under pressure, trading down 3.3% to $264.76 and near its 52-week low, even as McDonald’s recently beat quarterly earnings and revenue expectations and paid a $1.86 quarterly dividend.

Louisiana State Employees Retirement System acquired a new position in McDonald's Corporation (NYSE:MCD - Free Report) during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 36,300 shares of the fast-food giant's stock, valued at approximately $11,282,000.

Other institutional investors have also recently made changes to their positions in the company. Norges Bank purchased a new position in shares of McDonald's during the 4th quarter valued at about $2,890,438,000. J. Stern & Co. LLP boosted its stake in shares of McDonald's by 9,867.5% in the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock worth $776,608,000 after buying an additional 2,515,515 shares during the last quarter. Viking Global Investors LP boosted its stake in shares of McDonald's by 171.7% in the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock worth $913,157,000 after buying an additional 1,974,998 shares during the last quarter. Franklin Resources Inc. grew its holdings in McDonald's by 36.6% during the third quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant's stock worth $1,336,155,000 after acquiring an additional 1,179,244 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its holdings in McDonald's by 111.3% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,071,296 shares of the fast-food giant's stock worth $629,446,000 after acquiring an additional 1,090,849 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s is being highlighted as part of the defensive restaurant group that can benefit when lower oil prices ease pressure on consumers, potentially supporting traffic and spending. Jack in the Box and First Watch Stocks Trade Up, What You Need To Know
• Positive Sentiment: Investors are paying attention to McDonald’s new “McDonald’s NEXT” modernization program, which aims to improve food quality, add automation, deepen digital engagement, and strengthen franchise economics over time. How Investors May Respond To McDonald's (MCD) McDonald's NEXT Modernization And Evolving Cash-Flow Story
• Positive Sentiment: McDonald’s China announced a sustainability partnership with Syngenta and McCain to build a more resilient potato supply chain, which could support long-term supply stability for fries and other menu items. Syngenta Group China Partners With McDonald's and McCain for a More Sustainable Potato Supply Chain
• Neutral Sentiment: McDonald’s is drawing increased investor attention, but the related Zacks pieces are mostly stock-screening and comparison articles rather than new fundamental developments. McDonald's Corporation (MCD) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Recent consumer-interest stories around McDonald’s products and promotions, including the fried apple pie and FIFA World Cup 26 meals, may help brand visibility but do not clearly change the near-term earnings outlook. McDonald’s unveils FIFA World Cup 26 meals with collectible cups and Squishmallows
• Negative Sentiment: Several recent articles note McDonald’s shares have pulled back meaningfully over the past week, month, and year-to-date, reinforcing a weaker technical setup and valuation concern for traders. McDonald's (MCD) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Analysts Set New Price Targets

A number of brokerages have recently commented on MCD. KeyCorp dropped their price objective on shares of McDonald's from $345.00 to $330.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Weiss Ratings downgraded shares of McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday. Robert W. Baird set a $305.00 price target on shares of McDonald's in a research report on Thursday, May 7th. Erste Group Bank cut shares of McDonald's from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Finally, Tigress Financial upped their price objective on shares of McDonald's from $360.00 to $385.00 and gave the stock a "buy" rating in a research report on Friday, March 6th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $336.26.

Insider Activity

In related news, 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 value of $769,108.68. Following the sale, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 11,307 shares of company stock worth $3,262,622. 0.26% of the stock is owned by insiders.

McDonald's Trading Down 3.3%

NYSE:MCD opened at $264.76 on Friday. The company has a market cap of $188.12 billion, a P/E ratio of 21.83, a P/E/G ratio of 2.73 and a beta of 0.41. McDonald's Corporation has a twelve month low of $264.53 and a twelve month high of $341.75. The company's 50-day moving average price is $284.16 and its 200-day moving average price is $304.79.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.74 by $0.09. The company had revenue of $6.52 billion during the quarter, compared to analysts' expectations of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. McDonald's's revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.67 EPS. On average, analysts expect that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were given a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is presently 61.34%.

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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