McDonald's Corporation $MCD Shares Acquired by Bessemer Group Inc.

Key Points

• Bessemer Group Inc. increased its McDonald’s stake by 132.1% in the first quarter, buying 754,596 additional shares and lifting its holdings to 1,325,880 shares valued at about $412.1 million.
• McDonald’s reported better-than-expected Q1 results, posting EPS of $2.83 versus estimates of $2.74 and revenue of $6.52 billion versus $6.47 billion expected. Revenue rose 9.4% from a year earlier.
• The company also paid a quarterly dividend of $1.86 per share, equal to an annualized $7.44 dividend yield of 2.7%, while analysts maintain a generally positive stance with a consensus rating of “Moderate Buy.”

Bessemer Group Inc. boosted its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 132.1% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,325,880 shares of the fast-food giant's stock after purchasing an additional 754,596 shares during the quarter. McDonald's makes up approximately 0.6% of Bessemer Group Inc.'s holdings, making the stock its 25th largest position. Bessemer Group Inc. owned approximately 0.19% of McDonald's worth $412,071,000 at the end of the most recent reporting period.

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

McDonald's Price Performance

NYSE MCD opened at $273.38 on Friday. McDonald's Corporation has a 12 month low of $264.09 and a 12 month high of $341.75. The firm has a market capitalization of $194.24 billion, a PE ratio of 22.54, a P/E/G ratio of 2.75 and a beta of 0.41. The company's 50 day simple moving average is $277.23 and its 200 day simple moving average is $300.56.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS 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 negative return on equity of 442.10% and a net margin of 31.62%.The firm's quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.67 earnings per share. Sell-side analysts anticipate that McDonald's Corporation will post 12.9 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were issued a $1.86 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. McDonald's's dividend payout ratio is 61.34%.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s is rolling out new limited-time items, including Caesar sauce, new chicken offerings, and other menu tests, which could help boost customer interest and restaurant traffic. McDonald's builds its new menu around a flavor it never sold
• Positive Sentiment: Analysts continue to view McDonald’s as a strong defensive restaurant name, with commentary pointing to customer engagement, value messaging, and marketing campaigns as potential supports for sales. Can McDonald's Global Marketing Strategy Drive Customer Traffic?
• Positive Sentiment: One Wall Street note kept a Buy rating on MCD even while trimming its price target, suggesting analysts still see upside from current levels. Citigroup price target change
• Neutral Sentiment: McDonald’s is drawing extra attention from investors and traders, with recent coverage framing the stock as a valuation and defensive-name debate rather than a clear new catalyst. MCD at $268, Starbucks at $106: Buy, Sell or Hold?
• Negative Sentiment: Several articles focus on ongoing “McProblem” issues, including concerns that McDonald’s traffic and business momentum have not improved enough, which may be reinforcing investor worries about the core growth outlook. McDonald's has a McProblem that's not getting better
• Negative Sentiment: Another report says McDonald’s stock is near its lowest levels in almost two years, highlighting pressure from weaker sentiment and a more cautious view of the company’s growth. Why McDonald's stock is at nearly 2-year lows

Insider Buying and Selling at McDonald's

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of the business's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares in the company, 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 legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were 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 directly owned 6,268 shares of the company's stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 8,681 shares of company stock valued at $2,456,440. Insiders own 0.26% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have commented on MCD. Barclays decreased their target price on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Erste Group Bank cut McDonald's from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Cfra upgraded McDonald's to a "buy" rating in a research report on Friday, May 8th. Citigroup decreased their price objective on McDonald's from $375.00 to $335.00 and set a "buy" rating for the company in a report on Wednesday. Finally, Rothschild & Co Redburn upgraded McDonald's from a "sell" rating to a "neutral" rating and raised their target price for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Fifteen equities research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $335.58.

About McDonald's

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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