McDonald's Corporation $MCD Shares Acquired by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital increased its McDonald’s stake by 49.9% in the fourth quarter, buying more than 1 million additional shares and bringing its holding to 3.1 million shares valued at about $948.8 million.
• McDonald’s continues to draw mostly positive analyst and investor attention, with a consensus rating of “Moderate Buy” and an average price target of $336.26, even as a few firms trimmed their targets or downgraded the stock.
• The company recently reported better-than-expected quarterly results, including EPS of $2.83 versus $2.74 expected and revenue growth of 9.4% year over year, while also paying a quarterly dividend of $1.86 per share.

Arrowstreet Capital Limited Partnership lifted its position in McDonald's Corporation (NYSE:MCD - Free Report) by 49.9% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 3,104,337 shares of the fast-food giant's stock after buying an additional 1,033,041 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.44% of McDonald's worth $948,779,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the company. Hamilton Point Investment Advisors LLC raised its holdings in shares of McDonald's by 1.8% in the 4th quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant's stock valued at $535,000 after buying an additional 31 shares during the period. Encompass More Asset Management raised 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 raised its holdings in shares of McDonald's by 1.4% in 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 period. Physician Wealth Advisors Inc. raised its holdings in shares of McDonald's by 1.6% in the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock valued at $642,000 after buying an additional 33 shares during the period. Finally, CFO4Life Group LLC raised its holdings in shares of McDonald's by 2.1% in the 3rd quarter. CFO4Life Group LLC now owns 1,669 shares of the fast-food giant's stock valued at $507,000 after buying an additional 34 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Key Stories Impacting McDonald's

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

• Positive Sentiment: Commentary highlighted McDonald’s as a “rare mega-cap” with accelerating fundamentals, citing 3.8% global comparable sales growth, more than $9 billion in loyalty sales over 90 days, and 9.4% year-over-year revenue growth, which supports the bull case for the stock. McDonald’s Will Trade at This Price in 2028
• Positive Sentiment: McDonald’s is testing AI-powered drive-thru ordering, and early results from a million orders appear promising; if rolled out successfully, this could improve efficiency and margins over time. McDonald’s Is Letting AI Take Your Orders Again. A Million Orders Later, the Results Look Promising.
• Positive Sentiment: Promotional activity tied to FIFA World Cup meals, collectible cups, and Squishmallows could help drive customer traffic and add some sales momentum. McDonald's FIFA World Cup meals with Squishmallows and 9 collectible cups are here
• Neutral Sentiment: Analyst and investor commentary remains generally supportive, with reports noting McDonald’s continues to attract attention as a defensive, widely followed stock. McDonald's Corporation (MCD) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Insider selling by executive Joseph Erlinger may weigh on sentiment slightly, even though such sales do not necessarily reflect a change in business outlook. Joseph Erlinger Sells 5,252 Shares of McDonald's NYSE: MCD Stock
• Negative Sentiment: Some recent coverage has also raised concerns about customer pushback on operational changes and workplace safety issues, which could create headline risk if they persist. Should McDonald’s AI Drive Thru Push and Safety Scrutiny Require Action From McDonald’s (MCD) Investors?

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on MCD. JPMorgan Chase & Co. cut their price objective on McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a report on Monday, May 11th. Weiss Ratings downgraded McDonald's from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, May 29th. BTIG Research reiterated a "buy" rating and issued a $370.00 price objective on shares of McDonald's in a report on Thursday, May 7th. Morgan Stanley set a $331.00 price objective on McDonald's in a report on Friday, May 8th. Finally, Barclays cut their price objective on McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, McDonald's presently has a consensus rating of "Moderate Buy" and an average target price of $336.26.

Insider Activity

In other news, insider Joseph M. Erlinger sold 5,252 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the transaction, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, 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. Over the last ninety days, insiders have sold 11,307 shares of company stock valued at $3,262,622. Insiders own 0.26% of the company's stock.

McDonald's Price Performance

Shares of NYSE MCD opened at $284.88 on Friday. The stock's 50-day moving average is $289.38 and its two-hundred day moving average is $306.75. McDonald's Corporation has a 1-year low of $271.85 and a 1-year high of $341.75. The company has a market cap of $202.41 billion, a price-to-earnings ratio of 23.49, a price-to-earnings-growth ratio of 2.84 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results 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 company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.McDonald's's revenue was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.67 EPS. Equities research analysts anticipate that McDonald's Corporation will post 12.93 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd will be given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Tuesday, June 2nd. McDonald's's dividend payout ratio is currently 61.34%.

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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