McDonald's Corporation $MCD Holdings Decreased by First National Trust Co

Key Points

• First National Trust Co. cut its McDonald’s stake by 7% in the second quarter, selling 5,038 shares and retaining 66,904 shares valued at approximately $18.1 million. Institutional investors and hedge funds collectively own 70.29% of MCD.
• McDonald’s reported quarterly earnings of $3.38 per share, beating estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion but fell slightly short of expectations. The company also declared a $1.86 quarterly dividend, representing a 2.8% yield.
• MCD opened at $265.43, near its 12-month low, while analysts maintained a “Moderate Buy” consensus with an average price target of $325.44. Recent insider activity was negative, with executives selling a combined 8,348 shares worth about $2.36 million during the last quarter.

First National Trust Co reduced its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 7.0% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 66,904 shares of the fast-food giant's stock after selling 5,038 shares during the period. First National Trust Co's holdings in McDonald's were worth $18,085,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Hamilton Point Investment Advisors LLC raised its holdings in shares of McDonald's by 1.8% during the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant's stock worth $535,000 after purchasing an additional 31 shares during the period. Encompass More Asset Management boosted its holdings in shares of McDonald's by 1.5% in the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant's stock valued at $648,000 after buying an additional 32 shares during the period. Richmond Investment Services LLC grew its position in shares of McDonald's by 1.4% during the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant's stock valued at $696,000 after buying an additional 32 shares during the last quarter. Papamarkou Wellner Asset Management inc. grew its position in shares of McDonald's by 0.4% during the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant's stock valued at $2,692,000 after buying an additional 32 shares during the last quarter. Finally, Physician Wealth Advisors Inc. raised its stake in McDonald's by 1.6% during the fourth quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock worth $642,000 after acquiring an additional 33 shares during the period. 70.29% of the stock is owned by institutional investors and hedge funds.

McDonald's Price Performance

MCD opened at $265.43 on Tuesday. The stock has a market cap 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 Corporation has a 12 month low of $260.96 and a 12 month high of $341.75. The stock's 50 day moving average price is $273.56 and its 200 day moving average price is $294.81.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping the consensus estimate of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company's quarterly revenue 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. Equities analysts anticipate that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Announces Dividend

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. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a dividend yield of 2.8%. McDonald's's dividend payout ratio (DPR) is 60.44%.

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

Insider Buying and Selling

In related news, insider Joseph M. Erlinger sold 5,252 shares of the firm'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 in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction that occurred 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 directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,348 shares of company stock worth $2,355,634 in the last quarter. Company insiders own 0.26% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have issued reports on MCD shares. Tigress Financial raised their target price on shares of McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a report on Friday, July 17th. JPMorgan Chase & Co. lowered their target price on McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a report on Monday, May 11th. UBS Group set a $305.00 price target on McDonald's in a research report on Wednesday, August 5th. Erste Group Bank downgraded McDonald's from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Finally, Rothschild & Co Redburn upgraded McDonald's from a "sell" rating to a "neutral" rating and boosted their price objective for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat.com, McDonald's presently has an average rating of "Moderate Buy" and an average target price of $325.44.

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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