Madison Asset Management LLC Takes Position in McDonald's Corporation $MCD

Key Points

• Madison Asset Management initiated a McDonald’s position by purchasing 42,878 shares worth approximately $11.6 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s reported quarterly EPS of $3.38, beating estimates of $3.32, while revenue reached $7.10 billion and increased 3.7% year over year.
• The company declared a quarterly dividend of $1.86 per share, equal to $7.44 annually and a 2.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $325.44.

Madison Asset Management LLC purchased a new stake in McDonald's Corporation (NYSE:MCD - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 42,878 shares of the fast-food giant's stock, valued at approximately $11,590,000.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Danske Bank A S purchased a new position in McDonald's during the second quarter worth approximately $99,831,000. Foster & Motley Inc. purchased a new stake in McDonald's in the 2nd quarter valued at $1,640,000. Plato Investment Management Ltd purchased a new stake in McDonald's in the 2nd quarter valued at $5,067,000. Bank of New York Mellon Corp acquired a new stake in shares of McDonald's in the 2nd quarter worth $1,359,276,000. Finally, S&CO Inc. acquired a new stake in shares of McDonald's in the 2nd quarter worth $2,282,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

McDonald's Trading Down 0.0%

Shares of NYSE:MCD opened at $266.88 on Thursday. The company has a market capitalization of $188.86 billion, a price-to-earnings ratio of 21.68, a PEG ratio of 2.99 and a beta of 0.41. McDonald's Corporation has a 12-month low of $260.96 and a 12-month high of $341.75. The business has a 50-day moving average price of $272.94 and a 200 day moving average price of $294.15.

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

McDonald's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be issued a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Tuesday, September 1st. McDonald's's dividend payout ratio is currently 60.44%.

Wall Street Analyst Weigh In

MCD has been the topic of several recent research reports. UBS Group set a $305.00 price target on shares of McDonald's in a research report on Wednesday, August 5th. Royal Bank Of Canada cut their price objective on shares of McDonald's from $305.00 to $295.00 and set a "sector perform" rating for the company in a research report on Wednesday, August 5th. JPMorgan Chase & Co. reduced their target price on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a research note on Monday, May 11th. Citigroup boosted their target price on shares of McDonald's from $335.00 to $345.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Finally, Cfra raised shares of McDonald's to a "buy" rating in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $325.44.

Insider Activity at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the 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 completion of the transaction, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, 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 completion of the sale, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 8,348 shares of company stock worth $2,355,634. Company insiders own 0.26% of the company's stock.

Key McDonald's News

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

• Positive Sentiment: McDonald’s second-quarter earnings beat expectations, with EPS of $3.38 versus the $3.32 consensus. Franchise-related strength, international growth, beverage opportunities and a planned U.S. recovery could support a rebound if management improves traffic and execution. McDonald’s Q2 Earnings Beat Puts U.S. Traffic and Margins in Focus
• Positive Sentiment: New and returning menu offerings—including a fall coffee flavor, limited-time meals and the Hello Kitty x Godzilla Happy Meal—could generate customer engagement and incremental visits. A gas-savings promotion may also enhance value perceptions. McDonald’s Has 8 New Hello Kitty x Godzilla Happy Meal Toys

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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