McDonald's Corporation $MCD Shares Sold by Rainey & Randall Wealth Advisors Inc.

Key Points

• Rainey & Randall Wealth Advisors cut its stake in McDonald's by 38.1% in Q4, selling 7,101 shares and ending the quarter with 11,560 shares valued at about $3.53 million (MCD is its 21st largest holding).
• Significant insider selling: CEO Christopher J. Kempczinski sold 26,276 shares for ~$8.76 million and EVP Jonathan Banner sold 6,201 shares, with insiders disposing of 71,657 shares worth ~$23.72 million over the last three months.
• McDonald's beat quarterly estimates (EPS $3.12 vs. $3.05; revenue $7.01B vs. $6.81B), pays a quarterly dividend of $1.86 ($7.44 annual, ~2.4% yield), and has a MarketBeat consensus rating of "Hold" with a $339.69 target.

Rainey & Randall Wealth Advisors Inc. cut its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 38.1% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 11,560 shares of the fast-food giant's stock after selling 7,101 shares during the quarter. McDonald's comprises approximately 0.6% of Rainey & Randall Wealth Advisors Inc.'s investment portfolio, making the stock its 21st biggest holding. Rainey & Randall Wealth Advisors Inc.'s holdings in McDonald's were worth $3,533,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in MCD. Evergreen Private Wealth LLC lifted its position in McDonald's by 162.5% during the 3rd quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant's stock worth $26,000 after acquiring an additional 52 shares during the period. Park Place Capital Corp increased its holdings in shares of McDonald's by 95.7% in the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after purchasing an additional 45 shares during the period. Painted Porch Advisors LLC increased its holdings in shares of McDonald's by 735.7% in the third quarter. Painted Porch Advisors LLC now owns 117 shares of the fast-food giant's stock valued at $36,000 after purchasing an additional 103 shares during the period. Davis Capital Management purchased a new position in shares of McDonald's in the third quarter worth about $37,000. Finally, Saranac Partners Ltd purchased a new position in shares of McDonald's in the third quarter worth about $37,000. 70.29% of the stock is owned by institutional investors and hedge funds.

Insider Activity at McDonald's

In related news, CEO Christopher J. Kempczinski sold 26,276 shares of the company's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $333.54, for a total transaction of $8,764,097.04. Following the completion of the transaction, the chief executive officer owned 22,900 shares in the company, valued at $7,638,066. This represents a 53.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Jonathan Banner sold 6,201 shares of the firm's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the completion of the transaction, the executive vice president directly owned 2,291 shares in the company, valued at $763,567.39. This represents a 73.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 71,657 shares of company stock worth $23,723,307 over the last three months. Company insiders own 0.25% of the company's stock.

McDonald's Price Performance

Shares of MCD stock opened at $311.78 on Friday. McDonald's Corporation has a 1-year low of $283.47 and a 1-year high of $341.75. The company has a market cap of $221.63 billion, a price-to-earnings ratio of 26.09, a PEG ratio of 2.73 and a beta of 0.53. The stock has a 50 day simple moving average of $319.62 and a 200-day simple moving average of $311.82.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, topping the consensus estimate of $3.05 by $0.07. The company had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.81 billion. McDonald's had a net margin of 31.85% and a negative return on equity of 343.90%. The firm's revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.83 EPS. Analysts anticipate that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd were paid a dividend of $1.86 per share. The ex-dividend date of this dividend was Tuesday, March 3rd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.4%. McDonald's's payout ratio is currently 62.26%.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on MCD. Sanford C. Bernstein reiterated a "market perform" rating and issued a $340.00 target price on shares of McDonald's in a research report on Thursday, February 12th. Erste Group Bank raised shares of McDonald's from a "hold" rating to a "buy" rating in a research report on Wednesday, February 18th. Truist Financial lifted their price objective on shares of McDonald's from $356.00 to $370.00 and gave the company a "buy" rating in a research note on Thursday, February 12th. JPMorgan Chase & Co. upped their price objective on shares of McDonald's from $305.00 to $325.00 and gave the company an "overweight" rating in a report on Tuesday, February 24th. Finally, UBS Group increased their price objective on shares of McDonald's from $350.00 to $365.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Seventeen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, McDonald's presently has a consensus rating of "Hold" and a consensus target price of $339.69.

About McDonald's

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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