McDonald's Corporation $MCD Shares Sold by Envestnet Asset Management Inc.

Key Points

• Envestnet Asset Management cut its McDonald’s stake by 2.2% in the second quarter, selling 28,514 shares and retaining 1.28 million shares valued at approximately $345.4 million. Institutional investors and hedge funds own 70.29% of the company.
• McDonald’s shares opened at $238.11, near their 52-week low of $234.03 and well below the 52-week high of $341.75. The company exceeded quarterly EPS expectations, reporting $3.38 versus the $3.32 consensus, while revenue rose 3.7% year over year to $7.10 billion.
• The quarterly dividend increased to $1.93, or $7.72 annualized, producing a 3.2% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $316.52, though the company’s planned $8.5 billion franchisee investment and persistent inflation and traffic pressures weigh on investor sentiment.

Envestnet Asset Management Inc. decreased its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 2.2% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,277,630 shares of the fast-food giant's stock after selling 28,514 shares during the quarter. Envestnet Asset Management Inc. owned about 0.18% of McDonald's worth $345,355,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Cypress Capital Management LLC WY lifted its stake in McDonald's by 7.0% during the fourth quarter. Cypress Capital Management LLC WY now owns 535 shares of the fast-food giant's stock worth $164,000 after purchasing an additional 35 shares during the period. Sound Income Strategies LLC grew its stake in shares of McDonald's by 0.6% in the 1st quarter. Sound Income Strategies LLC now owns 5,590 shares of the fast-food giant's stock valued at $1,718,000 after purchasing an additional 35 shares during the period. Jacobsen Capital Management raised its holdings in shares of McDonald's by 2.9% in the 1st quarter. Jacobsen Capital Management now owns 1,267 shares of the fast-food giant's stock worth $394,000 after buying an additional 36 shares in the last quarter. Sterling Investment Counsel LLC raised its holdings in shares of McDonald's by 0.7% in the 1st quarter. Sterling Investment Counsel LLC now owns 5,303 shares of the fast-food giant's stock worth $1,648,000 after buying an additional 37 shares in the last quarter. Finally, Legacy Wealth Managment LLC ID lifted its position in shares of McDonald's by 11.0% during the 1st quarter. Legacy Wealth Managment LLC ID now owns 372 shares of the fast-food giant's stock worth $116,000 after buying an additional 37 shares during the period. 70.29% of the stock is currently owned by institutional investors and hedge funds.

McDonald's Price Performance

MCD stock opened at $238.11 on Thursday. The business has a fifty day moving average price of $263.58 and a 200 day moving average price of $281.71. McDonald's Corporation has a fifty-two week low of $234.03 and a fifty-two week high of $341.75. The stock has a market capitalization of $168.50 billion, a price-to-earnings ratio of 19.34, a P/E/G ratio of 2.71 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analysts' expectations of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The business's revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.19 earnings per share. On average, equities analysts expect that McDonald's Corporation will post 12.88 earnings per share for the current fiscal year.

McDonald's Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be paid a $1.93 dividend. This is a boost from McDonald's's previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Tuesday, December 1st. McDonald's's payout ratio is presently 62.71%.

Analysts Set New Price Targets

MCD has been the topic of several recent analyst reports. Tigress Financial boosted their price target on McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a research note on Friday, July 17th. Wells Fargo & Company cut their price objective on McDonald's from $320.00 to $300.00 and set an "overweight" rating for the company in a report on Thursday, July 16th. Morgan Stanley reduced their target price on shares of McDonald's from $319.00 to $308.00 and set an "equal weight" rating on the stock in a research note on Monday, September 14th. KeyCorp reaffirmed an "overweight" rating on shares of McDonald's in a report on Monday. Finally, Royal Bank Of Canada dropped their target price on shares of McDonald's from $295.00 to $290.00 and set a "sector perform" rating for the company in a research report on Tuesday, September 15th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $316.52.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s unveiled its 10-year NEXT strategy, which includes restaurant remodels, employee training, improved food quality, technology upgrades and efforts to gain market share in chicken and beverages. Management expects the investments to improve restaurant productivity and operating margins over time. McDonald’s will spend big on restaurant upgrades, training to drive growth
• Positive Sentiment: The company is investing in AI-enabled ordering, digital drive-thru tools and a new media network that could eventually create a $1 billion advertising business, adding potential high-margin revenue streams beyond restaurant sales. Why McDonald’s is following Walmart and Amazon into the advertising business
• Neutral Sentiment: Menu changes will emphasize hand-breaded or grilled chicken, wraps and smaller, protein-focused options. Management views changing consumer habits, including GLP-1 drug use, as an opportunity, but the sales impact remains uncertain. More tech and hand-breaded chicken coming to McDonald’s
• Negative Sentiment: McDonald’s plans approximately $8.5 billion in franchisee support through 2036, including about $5 billion through 2030 for rent relief, remodels and capital investments. Investors are concerned that the substantial cash commitment could pressure near-term returns and margins. McDonald’s Says It Plans to Spend Up to $8.5B on Improving Restaurants
• Negative Sentiment: CEO Chris Kempczinski warned that elevated inflation and flat customer traffic may persist, signaling that the turnaround could take years and that consumers remain under pressure. McDonald’s CEO expects high inflation, flat traffic are not going away
• Negative Sentiment: Analysts and investors viewed the growth targets and chicken initiatives as insufficiently compelling relative to the spending required, contributing to a sharp decline toward the stock’s 52-week low. McDonald’s Unveils 10-Year Growth Plan

McDonald's Profile

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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