McDonald's Corporation $MCD Shares Purchased by Hohimer Wealth Management LLC

Key Points

• Hohimer Wealth Management increased its McDonald’s stake by 67.3% in the third quarter, adding 13,007 shares to hold 32,324 shares valued at $7.47 million. Institutional investors own about 70.3% of the company’s stock.
• McDonald’s quarterly EPS of $3.57 beat estimates, but revenue fell short at $7.16 billion and U.S. comparable sales declined. The company is testing value bundles at nearly 2,000 U.S. locations as it seeks to improve customer traffic.
• The company raised its quarterly dividend to $1.93 per share, up from $1.86. Analyst views were mixed, with Argus raising its target while Freedom Broker downgraded the stock to “hold.”

Hohimer Wealth Management LLC grew its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 67.3% during the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 32,324 shares of the fast-food giant's stock after buying an additional 13,007 shares during the quarter. Hohimer Wealth Management LLC's holdings in McDonald's were worth $7,465,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in the stock. Ascentis Wealth Management LLC raised its holdings in shares of McDonald's by 4,008.8% during the 2nd quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant's stock valued at $22,768,000 after buying an additional 82,180 shares in the last quarter. Ridgewood Investments LLC purchased a new stake in McDonald's during the 3rd quarter valued at $1,026,000. Borer Denton & Associates Inc. raised its stake in shares of McDonald's by 16.9% during the second quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant's stock valued at $3,746,000 after acquiring an additional 2,000 shares during the last quarter. HighTower Advisors LLC raised its stake in shares of McDonald's by 7.1% during the second quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant's stock valued at $397,822,000 after acquiring an additional 97,060 shares during the last quarter. Finally, Viking Fund Management LLC boosted its holdings in shares of McDonald's by 60.0% during the third quarter. Viking Fund Management LLC now owns 40,000 shares of the fast-food giant's stock worth $9,238,000 after purchasing an additional 15,000 shares during the period. 70.29% of the stock is owned by institutional investors.

McDonald's News Roundup

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

• Positive Sentiment: Argus raised its price target to $320 from $310 and reiterated a “buy” rating, signaling confidence in the stock’s prospects. Argus rating
• Neutral Sentiment: McDonald’s is testing value bundles at nearly 2,000 U.S. restaurants, ahead of a planned national value platform in early 2027. The deals may help bring back customers, but the company is still assessing their effect on traffic and orders. McDonald’s value-bundle test
• Neutral Sentiment: Third-quarter profit beat analyst estimates, but revenue missed and U.S. comparable sales declined. That mixed backdrop helps explain why investors are watching for evidence that value promotions can sustain a domestic recovery. Q3 earnings and U.S. traffic
• Negative Sentiment: Consumers have filed a lawsuit alleging McDonald’s labeled McCafé drinks “sugar free” despite some containing as much as 18 grams of sugar. The allegations are unproven, but the case could create legal and reputational risk. McCafé labeling lawsuit
• Negative Sentiment: Freedom Broker cut its rating from “buy” to “hold” and lowered its price target to $298 from $305, adding a more cautious view alongside the recent analyst optimism. Freedom Broker rating change

McDonald's Trading Down 0.1%

Shares of NYSE MCD opened at $276.36 on Monday. McDonald's Corporation has a 12 month low of $229.20 and a 12 month high of $341.75. The firm has a market capitalization of $195.56 billion, a PE ratio of 21.86, a price-to-earnings-growth ratio of 3.20 and a beta of 0.42. The firm has a fifty day simple moving average of $248.76 and a two-hundred day simple moving average of $282.57.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 EPS for the quarter, topping the consensus estimate of $3.38 by $0.19. The firm had revenue of $7.16 billion during the quarter, compared to analysts' expectations of $7.28 billion. McDonald's had a net margin of 32.38% and a negative return on equity of 671.56%. The company's quarterly revenue was up 1.1% compared to the same quarter last year. During the same period last year, the company posted $3.22 EPS. On average, sell-side analysts predict that McDonald's Corporation will post 12.88 earnings per share for the current year.

McDonald's Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a $1.93 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This is an increase from McDonald's's previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a yield of 2.8%. McDonald's's payout ratio is currently 61.08%.

Analyst Upgrades and Downgrades

MCD has been the topic of several recent analyst reports. HC Wainwright set a $250.00 target price on McDonald's in a research note on Friday, September 25th. Gordon Haskett lowered their price target on McDonald's from $315.00 to $285.00 and set a "buy" rating for the company in a research report on Thursday, September 24th. Seaport Research Partners initiated coverage on McDonald's in a research report on Wednesday, September 16th. They set a "neutral" rating for the company. Rothschild & Co Redburn dropped their price objective on McDonald's from $306.00 to $285.00 in a report on Wednesday, August 26th. Finally, Tigress Financial lifted their price objective on McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a research report on Friday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $297.82.

About McDonald's

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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