McDonald's Corporation $MCD Shares Sold by Mariner Investment Group LLC

Key Points

• Mariner Investment Group cut its McDonald’s stake by 95% in the second quarter, selling 28,500 shares and retaining 1,500 shares valued at approximately $405,000. Institutional investors collectively own 70.29% of MCD.
• McDonald’s reported quarterly EPS of $3.38, beating estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion, slightly below expectations.
• The company declared a quarterly dividend of $1.86 per share, implying an annualized payout of $7.44 and a 2.7% yield. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $325.44, versus a recent share price of $272.28.

Mariner Investment Group LLC decreased its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 95.0% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 1,500 shares of the fast-food giant's stock after selling 28,500 shares during the quarter. Mariner Investment Group LLC's holdings in McDonald's were worth $405,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in MCD. Your Advocates Ltd. LLP acquired a new position in shares of McDonald's in the fourth quarter worth $27,000. IFC & Insurance Marketing Inc. acquired a new stake in shares of McDonald's in the fourth quarter valued at $29,000. Abound Financial LLC purchased a new position in McDonald's in the fourth quarter valued at $30,000. DecisionPoint Financial LLC boosted its holdings in McDonald's by 1,616.7% in the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after purchasing an additional 97 shares during the period. Finally, Entrust Financial LLC purchased a new position in McDonald's in the fourth quarter valued at $31,000. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Price Performance

NYSE:MCD opened at $272.28 on Friday. The firm has a market capitalization of $192.68 billion, a PE ratio of 22.12, a price-to-earnings-growth ratio of 3.09 and a beta of 0.41. The business's fifty day moving average price is $273.95 and its 200 day moving average price is $295.44. McDonald's Corporation has a 12 month low of $260.96 and a 12 month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. The company had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald's had a negative return on equity of 512.80% and a net margin of 31.72%.McDonald's's revenue for the quarter was up 3.7% on a year-over-year basis. During the same period in the previous year, the business earned $3.19 EPS. As a group, equities analysts anticipate that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald's's dividend payout ratio (DPR) is 60.44%.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: Nationwide menu initiatives, including new energy-focused beverages, seven menu additions, and the limited-time Hello Kitty and Godzilla Happy Meal promotion, could support traffic, customer engagement, and comparable-sales growth. McDonald’s serving up new kind of energy boost on menus nationwide
• Positive Sentiment: Some analysts see potential upside toward the mid-$300s if McDonald’s improves U.S. same-store sales and executes its McDonald’s NEXT strategy effectively. The company also continues to benefit from its large franchise and real-estate platform. McDonald’s stock gets fair value trim as analysts split on U.S. execution

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. KeyCorp cut their price target on McDonald's from $315.00 to $305.00 and set an "overweight" rating on the stock in a report on Wednesday, August 5th. Barclays decreased their price objective on McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Rothschild & Co Redburn raised McDonald's from a "sell" rating to a "neutral" rating and boosted their price objective for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. UBS Group set a $305.00 target price on shares of McDonald's in a research note on Wednesday, August 5th. Finally, Guggenheim reduced their target price on shares of McDonald's from $320.00 to $290.00 and set a "neutral" rating on the stock in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $325.44.

Insider Activity at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 8,348 shares of company stock valued at $2,355,634. 0.26% of the stock is owned by company insiders.

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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