McDonald's Corporation $MCD Shares Sold by The Manufacturers Life Insurance Company

Key Points

• The Manufacturers Life Insurance Company cut its McDonald’s stake by 19.3% in the second quarter, selling 96,184 shares and retaining 402,353 shares valued at approximately $108.8 million. Institutional investors and hedge funds collectively own 70.29% of the company.
• McDonald’s reported quarterly EPS of $3.38, exceeding estimates by $0.06, while revenue reached $7.10 billion and increased 3.7% year over year. The company declared a quarterly dividend of $1.86 per share, equivalent to a 2.9% annualized yield.
• The stock opened at $252.58, near its one-year low of $252.15 and below its 50- and 200-day moving averages. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $320.57, despite several recent target reductions.

The Manufacturers Life Insurance Company reduced its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 19.3% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 402,353 shares of the fast-food giant's stock after selling 96,184 shares during the quarter. The Manufacturers Life Insurance Company owned 0.06% of McDonald's worth $108,760,000 at the end of the most recent quarter.

Several other large investors also recently made changes to their positions in MCD. California State Teachers Retirement System boosted its position in McDonald's by 27,036.7% during the 2nd quarter. California State Teachers Retirement System now owns 302,891,546 shares of the fast-food giant's stock worth $81,874,614,000 after purchasing an additional 301,775,375 shares during the period. Norges Bank purchased a new position in McDonald's in the fourth quarter valued at about $2,890,438,000. Bank of New York Mellon Corp acquired a new position in shares of McDonald's during the second quarter worth about $1,359,276,000. Diamant Asset Management Inc. lifted its stake in shares of McDonald's by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock worth $806,917,000 after purchasing an additional 2,587,986 shares in the last quarter. Finally, J. Stern & Co. LLP boosted its position in shares of McDonald's by 9,867.5% in the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock worth $776,608,000 after buying an additional 2,515,515 shares during the period. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Price Performance

Shares of McDonald's stock opened at $252.58 on Friday. The business has a 50-day moving average of $267.69 and a 200-day moving average of $286.80. The company has a market capitalization of $178.74 billion, a PE ratio of 20.52, a P/E/G ratio of 2.73 and a beta of 0.41. McDonald's Corporation has a 1-year low of $252.15 and a 1-year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly 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 business 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 company's revenue was up 3.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $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 Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.9%. McDonald's's payout ratio is currently 60.44%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on MCD shares. Tigress Financial increased their target price on McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a research note on Friday, July 17th. Argus reduced their price target on McDonald's from $320.00 to $310.00 and set a "buy" rating on the stock in a research report on Wednesday, August 26th. Piper Sandler set a $286.00 price target on McDonald's in a report on Tuesday, August 4th. Guggenheim lowered their price objective on shares of McDonald's from $320.00 to $290.00 and set a "neutral" rating for the company in a research report on Wednesday, August 5th. Finally, Freedom Capital raised shares of McDonald's from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $320.57.

Key Stories Impacting McDonald's

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

• Positive Sentiment: McDonald’s CEO said some customer groups are ordering more Happy Meals, suggesting continued appeal for the company’s value-oriented family offerings. This group is ordering more Happy Meals, McDonald's CEO says
• Positive Sentiment: New and limited-time menu initiatives—including a fall latte, an exclusive meal and a SpongeBob–One Piece Happy Meal collaboration—could support restaurant traffic and customer engagement. McDonald's new fall latte SpongeBob and One Piece Happy Meal collaboration
• Neutral Sentiment: McDonald’s and Burger King are reportedly emphasizing human workers as a way to improve the customer experience. The strategy may strengthen service and brand perception, but could also carry higher labor costs. McDonald's and Burger King turn to human workers
• Neutral Sentiment: Promotions such as free or discounted double cheeseburgers and highly publicized menu items may boost visits, although investors will watch whether incremental sales offset promotional pressure on margins. McDonald's National Cheeseburger Day promotion
• Negative Sentiment: TD Cowen lowered its McDonald’s price target from $300 to $282 and assigned a “hold” rating. Although the revised target implies upside from the current level, the cut signals reduced near-term conviction.
• Negative Sentiment: Erste Group Bank trimmed its FY2027 EPS estimate from $14.00 to $13.96, adding to concerns about limited earnings growth.
• Negative Sentiment: Coverage highlighting McDonald’s new one-year low reinforces technical weakness and may encourage additional selling, despite the company’s strong profitability and recent quarterly EPS beat. McDonald's sets new one-year low

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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