McDonald's Corporation $MCD Shares Acquired by CI Investments Inc.

Key Points

• CI Investments Inc. increased its McDonald’s stake by 13% in the first quarter, adding 4,675 shares to bring its total holding to 40,712 shares valued at about $12.65 million.
• McDonald’s recent earnings beat expectations, reporting $2.83 EPS versus $2.74 expected and revenue of $6.52 billion, with sales up 9.4% year over year.
• The company continues to reward shareholders with a dividend, paying a quarterly $1.86 dividend that annualizes to $7.44 per share, for a yield of about 2.8%.

CI Investments Inc. grew its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 13.0% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 40,712 shares of the fast-food giant's stock after purchasing an additional 4,675 shares during the period. CI Investments Inc.'s holdings in McDonald's were worth $12,653,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Your Advocates Ltd. LLP acquired a new stake in McDonald's during the fourth quarter worth about $27,000. Park Place Capital Corp raised its position in shares of McDonald's by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after buying an additional 45 shares during the period. IFC & Insurance Marketing Inc. acquired a new position in McDonald's in the fourth quarter valued at approximately $29,000. Abound Financial LLC purchased a new position in McDonald's in the fourth quarter worth approximately $30,000. Finally, Purpose Unlimited Inc. acquired a new stake in McDonald's during the fourth quarter worth $31,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

McDonald's Stock Performance

Shares of MCD opened at $263.49 on Thursday. The company's 50-day simple moving average is $276.47 and its 200-day simple moving average is $299.40. McDonald's Corporation has a 1 year low of $261.85 and a 1 year high of $341.75. The stock has a market capitalization of $187.21 billion, a PE ratio of 21.72, a P/E/G ratio of 2.83 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last announced its 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 firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm's revenue for the quarter was up 9.4% on a year-over-year basis. During the same period in the prior year, the firm earned $2.67 EPS. On average, sell-side analysts predict that McDonald's Corporation will post 12.86 earnings per share for the current year.

McDonald's Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were paid a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is presently 61.34%.

McDonald's News Roundup

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

• Positive Sentiment: McDonald’s is rolling out multiple new limited-time menu items, including breakfast and Caesar offerings, which could help attract customers and support sales momentum. McDonald’s Introduces Sweet and Savory New Breakfast Item
• Positive Sentiment: The company’s new breakfast biscuit and sweet makeover of a classic sandwich reinforce its strategy of frequent menu updates to drive breakfast traffic and customer engagement. McDonald’s gives classic breakfast sandwich a sweet makeover
• Positive Sentiment: Analyst-style commentary highlighting McDonald’s as a “champion” and a solid dividend name may be helping support the stock, especially as investors look for defensive names with reliable cash flow. McDonald's: Time Abroad Tells Me This Is Still A Champion
• Neutral Sentiment: Recent coverage also notes MCD has been trading lower alongside a broader pullback, reflecting weakness in momentum rather than a company-specific earnings disappointment. McDonald's (MCD) Stock Declines While Market Improves: Some Information for Investors
• Neutral Sentiment: Customer-complaint coverage and mixed reactions to a new McFlurry flavor could temper enthusiasm, but these stories appear more consumer-interest oriented than material fundamentals. 12 Common Customer Complaints About McDonald's
• Negative Sentiment: Some recent commentary suggests the stock has been declining even as the broader market improved, which may signal near-term pressure from investor rotation or technical weakness. McDonald's (MCD) Stock Declines While Market Improves: Some Information for Investors

Analyst Ratings Changes

MCD has been the topic of a number of research analyst reports. KeyCorp restated an "overweight" rating on shares of McDonald's in a research report on Wednesday, July 15th. Tigress Financial upped their target price on shares of McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a research report on Friday, July 17th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of McDonald's in a research note on Tuesday, June 23rd. Barclays reduced their price target on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Finally, Rothschild & Co Redburn raised shares of McDonald's from a "sell" rating to a "neutral" rating and increased their price objective for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Fifteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $336.32.

Insider Buying and Selling at McDonald's

In related news, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction that occurred on 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 owned 7,734 shares of the company's stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction that occurred on 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 in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 8,348 shares of company stock worth $2,355,634. Insiders own 0.26% of the company's stock.

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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