McDonald's Corporation $MCD Position Raised by Charles Schwab Trust Co

Key Points

• Charles Schwab Trust Co increased its McDonald’s position by 236.4% in the third quarter, purchasing 6,883 additional shares and bringing its holdings to 9,795 shares valued at approximately $2.26 million.
• Institutional investors collectively own 70.29% of McDonald’s, with major firms including State Street, Arrowstreet Capital and J. Stern & Co. also increasing their positions.
• McDonald’s shares recently traded around $242.72, while the company reported quarterly EPS above expectations and raised its quarterly dividend to $1.93, equivalent to a 3.2% annualized yield. Analysts maintained a consensus “Moderate Buy” rating with an average price target of $295.94.

Charles Schwab Trust Co raised its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 236.4% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 9,795 shares of the fast-food giant's stock after purchasing an additional 6,883 shares during the period. Charles Schwab Trust Co's holdings in McDonald's were worth $2,262,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in MCD. State Street Corp increased its position in McDonald's by 1.8% during the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant's stock valued at $9,752,921,000 after buying an additional 646,675 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in McDonald's during the second quarter valued at $1,359,276,000. Arrowstreet Capital Limited Partnership boosted its holdings in McDonald's by 17.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant's stock worth $1,130,587,000 after acquiring an additional 533,448 shares in the last quarter. Diamant Asset Management Inc. boosted its holdings in McDonald's by 30,979.0% in the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock worth $806,917,000 after acquiring an additional 2,587,986 shares in the last quarter. Finally, J. Stern & Co. LLP grew its stake in shares of McDonald's by 9,867.5% in the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock worth $776,608,000 after acquiring an additional 2,515,515 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Key McDonald's News

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

• Positive Sentiment: McDonald’s shares advanced even as the broader market weakened, indicating some relative strength and investor interest at depressed valuation levels. McDonald's Increases Despite Market Slip
• Positive Sentiment: The company’s roughly $8.5 billion franchisee-support and modernization plan, along with personalized digital offers, value meals and streamlined marketing, could improve traffic and sales if execution improves. The planned “Archy” drive-through AI system may also support efficiency, although its benefits remain unproven. McDonald's $8.5B Fix
• Positive Sentiment: Renewed promotions, including the Monopoly Go collaboration and potential Disney-villain Boo Buckets, could provide short-term customer engagement and seasonal sales support, though these campaigns are unlikely to change the long-term outlook by themselves. Monopoly Go Returns to McDonald's
• Neutral Sentiment: At about 18 times earnings, MCD’s valuation may already reflect some of the turnaround risk, but investors still need evidence that the spending plan can restore sustainable growth. McDonald's Trades at 18 Times Earnings
• Negative Sentiment: Shares remain down sharply over six months as weak U.S. sales, ineffective value-menu execution and reduced earnings estimates weigh on investor confidence. Analysts are questioning whether promotions and operational fixes can reverse the slowdown. McDonald's Stock Down 23 Percent in Six Months
• Negative Sentiment: A proposed class-action lawsuit alleging problematic AI-driven menu pricing creates legal, reputational and regulatory risk, while reports of a poorly reviewed U.S. location highlight potential service and franchise-operator issues. McDonald's AI Menu Pricing Lawsuit

McDonald's Trading Up 1.9%

NYSE MCD traded up $4.41 during trading hours on Thursday, hitting $242.72. 3,722,480 shares of the company's stock traded hands, compared to its average volume of 4,236,576. McDonald's Corporation has a 52 week low of $229.20 and a 52 week high of $341.75. The firm has a market capitalization of $171.76 billion, a P/E ratio of 19.76, a P/E/G ratio of 2.64 and a beta of 0.44. The business's fifty day moving average price is $253.35 and its two-hundred day moving average price is $272.74.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results 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 for 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% on a year-over-year basis. During the same period last year, the firm earned $3.19 earnings per share. On average, sell-side analysts expect that McDonald's Corporation will post 12.84 EPS for the current fiscal year.

McDonald's Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be issued a $1.93 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a yield of 3.2%. This is an increase from McDonald's's previous quarterly dividend of $1.86. McDonald's's payout ratio is 62.71%.

Analyst Ratings Changes

MCD has been the topic of several research analyst reports. Jefferies Financial Group lowered their target price on shares of McDonald's from $260.00 to $250.00 and set an "overweight" rating on the stock in a research note on Tuesday, September 29th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of McDonald's from $325.00 to $300.00 and set a "buy" rating for the company in a research note on Monday, September 14th. DZ Bank reissued a "buy" rating on shares of McDonald's in a report on Thursday, September 24th. Seaport Research Partners assumed coverage on McDonald's in a report on Wednesday, September 16th. They issued a "neutral" rating for the company. Finally, Rothschild & Co Redburn reduced their price objective on McDonald's from $306.00 to $285.00 in a research report on Wednesday, August 26th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $295.94.

McDonald's Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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