McDonald's Corporation $MCD Shares Sold by Capital Research Global Investors

Key Points

• Capital Research Global Investors trimmed its McDonald's stake by 9.0%, selling 617,963 shares and leaving it with 6,247,866 shares worth about $1.90 billion, while institutional investors own roughly 70.3% of the company.
• McDonald's beat quarterly estimates with $3.12 EPS (vs. $3.05 expected) and $7.01 billion in revenue (up 9.7% YoY), and declared a quarterly dividend of $1.86 (annualized $7.44, ~2.2% yield) payable March 17.
• Insiders have sold a total of 71,517 shares valued at about $23.66 million in the past 90 days (insider ownership ~0.25%), and Wall Street's consensus rating is a Hold with an average target price of $339.69.

Capital Research Global Investors cut its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 9.0% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 6,247,866 shares of the fast-food giant's stock after selling 617,963 shares during the quarter. Capital Research Global Investors owned about 0.88% of McDonald's worth $1,898,662,000 as of its most recent filing with the SEC.

Several other hedge funds have also made changes to their positions in MCD. Brighton Jones LLC grew its position in McDonald's by 21.6% in the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock valued at $2,692,000 after buying an additional 1,649 shares during the last quarter. Revolve Wealth Partners LLC grew its position in shares of McDonald's by 2.8% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock valued at $563,000 after purchasing an additional 52 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in shares of McDonald's by 11.4% during the second quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant's stock valued at $589,000 after buying an additional 206 shares during the period. United Bank increased its stake in McDonald's by 6.0% in the second quarter. United Bank now owns 8,102 shares of the fast-food giant's stock valued at $2,367,000 after purchasing an additional 459 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its position in McDonald's by 2.5% during the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant's stock worth $3,780,000 after purchasing an additional 312 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Price Performance

MCD stock opened at $331.03 on Tuesday. The firm has a market cap of $235.17 billion, a PE ratio of 27.70, a P/E/G ratio of 2.92 and a beta of 0.51. McDonald's Corporation has a 12 month low of $283.47 and a 12 month high of $341.75. The firm has a 50 day simple moving average of $318.66 and a 200 day simple moving average of $311.15.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share for the quarter, topping the consensus estimate of $3.05 by $0.07. The business had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.81 billion. McDonald's had a negative return on equity of 343.90% and a net margin of 31.85%.The company's revenue was up 9.7% compared to the same quarter last year. During the same period last year, the company posted $2.83 EPS. As a group, sell-side analysts expect that McDonald's Corporation will post 12.25 earnings per share for the current year.

McDonald's Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd will be paid a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, March 3rd. This represents a $7.44 annualized dividend and a dividend yield of 2.2%. McDonald's's payout ratio is presently 62.26%.

Insider Transactions at McDonald's

In other news, CMO Edith Morgan Flatley sold 4,692 shares of the stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $331.00, for a total transaction of $1,553,052.00. Following the transaction, the chief marketing officer owned 6,200 shares in the company, valued at $2,052,200. This represents a 43.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,486 shares of the firm's stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $320.00, for a total transaction of $795,520.00. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at $2,005,760. This represents a 28.40% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 71,517 shares of company stock valued at $23,655,503 in the last ninety days. 0.25% of the stock is currently owned by insiders.

McDonald's News Summary

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

• Positive Sentiment: New product momentum — McDonald’s Big Arch burger is being heavily promoted (CEO appearances, social campaigns such as "First Job Confessional") and is generating strong online buzz that can lift traffic and brand engagement. McDonald's Big Arch Burger Tests Brand Power And Rich Valuation
• Positive Sentiment: Analyst upgrade — At least one outlet reports a raised price target to $385, signaling increased analyst confidence in MCD’s outlook and valuation support. McDonald's NYSE: MCD Price Target Raised to $385.00
• Positive Sentiment: Viral CEO marketing — A widely viewed video of McDonald’s CEO sampling the new product has driven free publicity and conversations that amplify the Big Arch campaign. Increased organic attention can translate into short-term traffic gains. Viral video of McDonald's CEO eating new 'product' draws response from Columbus Metropolitan Library
• Neutral Sentiment: Pricing variability — A study shows Big Arch prices vary widely across U.S. markets; this affects local comps and customer perception but is not a company-wide earnings surprise. McDonald's Big Arch Burger Prices Swing Wildly Across U.S., New Study Shows
• Neutral Sentiment: Ongoing product initiatives — New Happy Meal offerings and Filet‑O‑Fish tips/PR continue to support menu innovation and value perception, which can aid transaction growth over time. McDonald’s announces new happy meal
• Negative Sentiment: Competitive and reputational noise — Rival chains (notably Burger King) and their agencies have produced social jabs that highlight brand rivalry; while largely promotional theatre, sustained negative narratives can dent sentiment. Burger King names 2 new agencies following viral Whopper bite moment
• Negative Sentiment: Macro/logistics risk — Analysis flags meaningful exposure to very high oil prices (fuel for delivery/drive‑thru, packaging, logistics) that could suppress demand or raise operating risk if energy spikes materially. McDonald’s Real Risk From $150 Oil Has Nothing to Do With Costs

Wall Street Analyst Weigh In

Several brokerages recently issued reports on MCD. Argus upgraded McDonald's from a "hold" rating to a "buy" rating and set a $380.00 price target for the company in a report on Friday, February 13th. KeyCorp increased their target price on McDonald's from $340.00 to $354.00 and gave the stock an "overweight" rating in a research report on Tuesday, March 3rd. Robert W. Baird set a $335.00 target price on McDonald's in a research report on Thursday, February 12th. Mizuho lifted their price objective on shares of McDonald's from $300.00 to $325.00 and gave the company a "neutral" rating in a research note on Friday, February 6th. Finally, Guggenheim lowered their target price on shares of McDonald's from $325.00 to $320.00 and set a "neutral" rating on the stock in a research note on Friday, February 13th. Seventeen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $339.69.

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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