McDonald's Corporation $MCD Holdings Raised by Fifth Third Bancorp

Key Points

• Fifth Third Bancorp boosted its McDonald’s stake by 39% in the first quarter, ending with 764,007 shares valued at about $237.4 million.
• McDonald’s reported better-than-expected quarterly results, with EPS of $2.83 and revenue of $6.52 billion, both topping analyst estimates and revenue rising 9.4% year over year.
• Despite the solid earnings and a 2.7% dividend yield, sentiment remains mixed: analysts currently rate the stock a consensus “Hold,” and recent insider selling plus concerns about softer U.S. comparable sales have weighed on the shares.

Fifth Third Bancorp increased its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 39.0% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 764,007 shares of the fast-food giant's stock after purchasing an additional 214,356 shares during the quarter. Fifth Third Bancorp owned about 0.11% of McDonald's worth $237,446,000 at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. Your Advocates Ltd. LLP bought a new position in McDonald's during the 4th quarter valued at $27,000. Park Place Capital Corp raised its stake in shares of McDonald's by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock worth $28,000 after buying an additional 45 shares in the last quarter. IFC & Insurance Marketing Inc. bought a new stake in shares of McDonald's in the 4th quarter worth $29,000. Abound Financial LLC acquired a new stake in shares of McDonald's in the fourth quarter valued at $30,000. Finally, DecisionPoint Financial LLC boosted its stake in McDonald's by 1,616.7% during the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after buying an additional 97 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have commented on MCD shares. Cfra upgraded shares of McDonald's to a "buy" rating in a research report on Friday, May 8th. Rothschild & Co Redburn raised shares of McDonald's from a "sell" rating to a "neutral" rating and lifted their price objective for the stock from $260.00 to $306.00 in a research note on Thursday, April 23rd. Erste Group Bank lowered shares of McDonald's from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Barclays reduced their target price on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Finally, TD Cowen restated a "hold" rating on shares of McDonald's in a research report on Friday, June 12th. Fifteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, McDonald's presently has an average rating of "Hold" and an average price target of $334.96.

Insider Activity

In related news, insider Joseph M. Erlinger sold 5,252 shares of the business'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 directly owned 7,734 shares of the company's stock, valued at approximately $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 SEC, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 8,681 shares of company stock worth $2,456,440. Company insiders own 0.26% of the company's stock.

McDonald's Stock Down 0.6%

Shares of McDonald's stock traded down $1.56 during trading on Friday, hitting $274.93. The stock had a trading volume of 2,978,722 shares, compared to its average volume of 4,490,551. McDonald's Corporation has a 1 year low of $264.53 and a 1 year high of $341.75. The stock has a 50 day simple moving average of $278.57 and a 200 day simple moving average of $301.85. The company has a market capitalization of $195.34 billion, a PE ratio of 22.67, a P/E/G ratio of 2.74 and a beta of 0.41.

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 for the quarter, topping the consensus estimate of $2.74 by $0.09. The firm had revenue of $6.52 billion for 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%. The company's quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.67 EPS. As a group, equities analysts expect that McDonald's Corporation will post 12.91 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald's's dividend payout ratio (DPR) is presently 61.34%.

Key McDonald's News

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

• Positive Sentiment: McDonald's is leaning into beverages with a new custom drink push, including a Dirty Dr. Pepper-style offering, which could help drive traffic and lift average ticket sizes as chains compete for drink sales. McDonald’s Dirty Dr. Pepper Leads Its New Custom Drink Push
• Positive Sentiment: McDonald's is also using promotions and limited-time offers, including free fries for National French Fry Day and a BT21 Happy Meal rollout, to support customer engagement and near-term sales momentum. Free fries article BT21 Happy Meals article
• Positive Sentiment: Some recent commentary suggests McDonald's remains a defensible consumer name, with analysts and market writers highlighting its cash generation, brand strength, and potential to benefit from event-driven marketing around the FIFA World Cup. FIFA World Cup growth strategy article
• Neutral Sentiment: Several lifestyle pieces about ordering hacks, retro campaigns, and menu combinations are generating buzz, but these appear more like brand-interest stories than material stock drivers. Filet-O-Fish and Snack Wrap article Ordering hack article Vinyl record campaign article
• Neutral Sentiment: McDonald's has also been the subject of mixed third-party coverage comparing it with other consumer names and discussing macro risks, but these articles do not signal a clear company-specific catalyst on their own. McDonald's or Pfizer article Index exit and oil shock article
• Negative Sentiment: A Deutsche Bank note says McDonald's U.S. comparable sales likely hit a new low in the second quarter, reinforcing worries that traffic and same-store sales may be weakening. US sales likely hit new low article
• Negative Sentiment: Recent market pieces also note that McDonald's has been registering bigger daily declines than the broader market, suggesting investors remain cautious heading into upcoming sales and earnings-related updates. Registers a bigger fall than the market article

McDonald's 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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