McDonald's Corporation $MCD is Farmers Trust Co.'s 5th Largest Position

Key Points

• Farmers Trust Co. increased its stake in McDonald's Corporation by 9.5% in Q2, making it the company's 5th largest position with 40,585 shares valued at approximately $11.86 million.
• McDonald's reported an EPS of $3.19 for the last quarter, exceeding estimates, with revenues of $6.84 billion—up 5.4% year-over-year.
• The company announced a quarterly dividend of $1.77 per share, resulting in an annualized yield of 2.3%, with a payout ratio of 60.67%.

Farmers Trust Co. grew its position in McDonald's Corporation (NYSE:MCD - Free Report) by 9.5% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 40,585 shares of the fast-food giant's stock after purchasing an additional 3,522 shares during the period. McDonald's comprises about 2.2% of Farmers Trust Co.'s portfolio, making the stock its 5th largest position. Farmers Trust Co.'s holdings in McDonald's were worth $11,858,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. WealthPlan Investment Management LLC increased its holdings in McDonald's by 0.9% during the first quarter. WealthPlan Investment Management LLC now owns 3,630 shares of the fast-food giant's stock worth $1,134,000 after buying an additional 32 shares during the last quarter. Granite Bay Wealth Management LLC increased its holdings in McDonald's by 3.5% during the first quarter. Granite Bay Wealth Management LLC now owns 988 shares of the fast-food giant's stock worth $309,000 after buying an additional 33 shares during the last quarter. CVA Family Office LLC increased its holdings in McDonald's by 1.9% during the first quarter. CVA Family Office LLC now owns 1,793 shares of the fast-food giant's stock worth $560,000 after buying an additional 33 shares during the last quarter. Consilium Wealth Advisory LLC increased its holdings in McDonald's by 2.5% during the first quarter. Consilium Wealth Advisory LLC now owns 1,334 shares of the fast-food giant's stock worth $417,000 after buying an additional 33 shares during the last quarter. Finally, Security Financial Services INC. increased its holdings in McDonald's by 0.7% during the first quarter. Security Financial Services INC. now owns 5,043 shares of the fast-food giant's stock worth $1,575,000 after buying an additional 33 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

McDonald's Stock Up 0.4%

Shares of MCD opened at $303.47 on Tuesday. The stock has a market capitalization of $216.56 billion, a P/E ratio of 26.00, a PEG ratio of 3.08 and a beta of 0.49. The firm has a fifty day simple moving average of $306.09 and a two-hundred day simple moving average of $306.29. McDonald's Corporation has a twelve month low of $276.53 and a twelve month high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, topping the consensus estimate of $3.15 by $0.04. The firm had revenue of $6.84 billion during the quarter, compared to analysts' expectations of $6.68 billion. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The company's quarterly revenue was up 5.4% compared to the same quarter last year. During the same period last year, the company posted $2.97 EPS. Sell-side analysts expect that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd were paid a dividend of $1.77 per share. This represents a $7.08 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date was Tuesday, September 2nd. McDonald's's dividend payout ratio (DPR) is currently 60.67%.

Analysts Set New Price Targets

A number of analysts recently issued reports on MCD shares. Loop Capital downgraded shares of McDonald's from a "buy" rating to a "hold" rating and decreased their price objective for the stock from $346.00 to $315.00 in a report on Friday, June 6th. Truist Financial upped their price target on shares of McDonald's from $356.00 to $360.00 and gave the company a "buy" rating in a research note on Thursday, August 7th. Barclays lifted their price objective on shares of McDonald's from $355.00 to $360.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Redburn Atlantic restated a "sell" rating and set a $260.00 target price (down previously from $319.00) on shares of McDonald's in a research report on Tuesday, June 10th. Finally, Morgan Stanley lifted their price target on McDonald's from $324.00 to $326.00 and gave the company an "equal weight" rating in a research report on Monday, July 14th. Eleven research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, McDonald's currently has an average rating of "Hold" and an average target price of $325.86.

Insider Activity

In other McDonald's news, EVP Jonathan Banner sold 1,000 shares of the firm's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total transaction of $310,000.00. Following the completion of the sale, the executive vice president directly owned 99 shares in the company, valued at approximately $30,690. This trade represents a 90.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 939 shares of the firm's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total transaction of $281,221.11. Following the sale, the insider owned 9,283 shares of the company's stock, valued at approximately $2,780,165.67. This represents a 9.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 7,402 shares of company stock valued at $2,273,407 in the last quarter. 0.25% of the stock is owned by company insiders.

McDonald's Profile

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.

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