McDonald's Corporation $MCD Position Boosted by Ghe LLC

Key Points

• Ghe LLC significantly increased its McDonald’s stake in the first quarter, boosting holdings by 144.7% to 31,447 shares worth about $9.8 million. McDonald’s is now its 8th-largest holding and makes up roughly 2.1% of the portfolio.
• McDonald’s recent fundamentals were mixed but mostly solid: the company beat quarterly EPS and revenue estimates, with revenue up 9.4% year over year. It also paid a quarterly dividend of $1.86 per share, implying a 2.7% yield.
• Investors are watching for softer U.S. sales trends, as a Deutsche Bank note suggested McDonald’s U.S. comparable sales may have hit a new low in the second quarter. The stock has also recently lagged the broader market, reflecting cautious sentiment ahead of upcoming updates.

Ghe LLC increased its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 144.7% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 31,447 shares of the fast-food giant's stock after acquiring an additional 18,596 shares during the quarter. McDonald's makes up approximately 2.1% of Ghe LLC's holdings, making the stock its 8th biggest holding. Ghe LLC's holdings in McDonald's were worth $9,773,000 at the end of the most recent quarter.

Other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in shares of McDonald's by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock worth $22,112,675,000 after purchasing an additional 703,458 shares during the last quarter. State Street Corp increased its stake in McDonald's by 2.7% in the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant's stock valued at $10,997,789,000 after purchasing an additional 959,140 shares during the last quarter. Geode Capital Management LLC increased its stake in McDonald's by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock valued at $5,195,965,000 after purchasing an additional 76,090 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in McDonald's by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant's stock worth $2,895,768,000 after buying an additional 277,617 shares during the period. Finally, Norges Bank acquired a new stake in McDonald's in the 4th quarter worth about $2,890,438,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.

McDonald's Trading Up 0.1%

MCD stock opened at $274.93 on Monday. The firm has a 50 day simple moving average of $278.57 and a 200-day simple moving average of $301.75. The company has a market capitalization of $195.34 billion, a P/E ratio of 22.67, a PEG ratio of 2.74 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.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results 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. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm had revenue of $6.52 billion for the quarter, compared to analysts' expectations of $6.47 billion. During the same period in the prior year, the company posted $2.67 earnings per share. The firm's quarterly revenue was up 9.4% on a year-over-year basis. On average, research analysts predict that McDonald's Corporation will post 12.91 EPS for the current year.

McDonald's Dividend Announcement

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

Insider Transactions at McDonald's

In related news, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the transaction, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 8,681 shares of company stock valued at $2,456,440 over the last quarter. 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 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

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Morgan Stanley set a $331.00 price objective on shares of McDonald's in a report on Friday, May 8th. Barclays decreased their target price on McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Evercore set a $350.00 target price on shares of McDonald's in a report on Friday, May 8th. Rothschild & Co Redburn raised shares of McDonald's from a "sell" rating to a "neutral" rating and increased their price objective for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Finally, Wells Fargo & Company lowered their price target on shares of McDonald's from $355.00 to $320.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Fifteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $334.96.

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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