McDonald's Corporation $MCD Shares Bought by Resona Asset Management Co. Ltd.

Key Points

• Resona Asset Management increased its McDonald’s stake by 1.9% in the first quarter, holding 259,969 shares worth about $80.7 million after buying 4,828 additional shares.
• McDonald’s reported better-than-expected quarterly results, with EPS of $2.83 versus the $2.74 estimate and revenue of $6.52 billion, while revenue rose 9.4% year over year.
• Analysts remain broadly constructive: the stock has a “Moderate Buy” consensus with an average price target of $335.70, even as some recent ratings were held or slightly downgraded.

Resona Asset Management Co. Ltd. grew its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 1.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 259,969 shares of the fast-food giant's stock after buying an additional 4,828 shares during the quarter. Resona Asset Management Co. Ltd.'s holdings in McDonald's were worth $80,683,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Your Advocates Ltd. LLP acquired a new stake in McDonald's in the fourth quarter valued at $27,000. Park Place Capital Corp grew its holdings in McDonald's by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock worth $28,000 after acquiring an additional 45 shares in the last quarter. IFC & Insurance Marketing Inc. acquired a new position in McDonald's during the 4th quarter worth $29,000. Abound Financial LLC bought a new stake in shares of McDonald's in the 4th quarter worth about $30,000. Finally, DecisionPoint Financial LLC increased its position in shares of McDonald's by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock worth $31,000 after purchasing an additional 97 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

Insider Activity at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the company's stock in a transaction on 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 transaction, the insider owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 11,307 shares of company stock valued at $3,262,622 over the last ninety days. Corporate insiders own 0.26% of the company's stock.

Analyst Ratings Changes

MCD has been the topic of several research analyst reports. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a research report on Friday, June 12th. Evercore set a $350.00 price objective on McDonald's in a report on Friday, May 8th. Weiss Ratings cut McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of McDonald's in a report on Monday, June 22nd. Finally, Robert W. Baird set a $305.00 target price on McDonald's in a research report on Thursday, May 7th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $335.70.

McDonald's Stock Performance

NYSE MCD opened at $278.44 on Thursday. McDonald's Corporation has a one year low of $264.53 and a one year high of $341.75. The company has a 50-day simple moving average of $279.20 and a 200-day simple moving average of $302.32. The firm has a market capitalization of $197.83 billion, a PE ratio of 22.95, a price-to-earnings-growth ratio of 2.81 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating analysts' consensus estimates of $2.74 by $0.09. The business had revenue of $6.52 billion during 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 company's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.67 EPS. Equities analysts forecast that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were issued 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 is 61.34%.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s is leaning on promotions and pop-culture tie-ins to drive traffic, including a new BT21 Happy Meal collaboration and related Pokémon-style merchandising buzz that could support near-term sales. McDonald's Reveals More On BT21 X Happy Meal Collaboration
• Positive Sentiment: Local and regional promotions, such as free fries for National French Fry Day and the return of limited-time menu items, may help create short-term customer traffic and engagement. McDonald's giving away free medium fries in Corpus Christi and Victoria for National French Fry Day
• Neutral Sentiment: Coverage focused on McDonald’s franchise economics and brand marketing keeps the company in the spotlight, but these stories do not materially change the investment thesis by themselves. McDonald's Franchise Owners Make A Surprising Amount Of Money
• Neutral Sentiment: Analyst and comparison pieces continue to frame McDonald’s as a defensive, lower-stress consumer stock, which supports the long-term case but does not appear to be a near-term catalyst. Buy these quality, low-stress stocks for the summer, says Jefferies
• Negative Sentiment: Several articles highlighted complaints that McDonald’s food no longer tastes as good as customers remember, plus reports that some loyal customers are choosing other fast-food chains instead, which can pressure traffic expectations. The McDonald’s Foods Customers Say No Longer Taste Like They Remember
• Negative Sentiment: Competitive headlines also showed rivals taking aim at McDonald’s with new menu offerings, underscoring ongoing pressure in the fast-food market. McDonald's rival takes not-so-subtle swipe at the fast food giant with new chicken sandwiches

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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