McDonald's Corporation $MCD Stake Raised by Guyasuta Investment Advisors Inc.

Key Points

• Guyasuta Investment Advisors increased its McDonald’s stake by 5.0% in the third quarter, bringing its holdings to 115,082 shares valued at approximately $26.6 million. Institutional investors collectively own 70.29% of the company.
• Analysts maintain a generally positive outlook, with McDonald’s receiving a consensus “Moderate Buy” rating and an average price target of $295.94, despite several recent target reductions.
• McDonald’s exceeded quarterly earnings expectations, reporting $3.38 in adjusted earnings per share and $7.10 billion in revenue, while raising its quarterly dividend to $1.93, equivalent to a 3.2% annual yield.

Guyasuta Investment Advisors Inc. boosted its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 5.0% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 115,082 shares of the fast-food giant's stock after purchasing an additional 5,506 shares during the quarter. McDonald's comprises about 1.6% of Guyasuta Investment Advisors Inc.'s investment portfolio, making the stock its 22nd largest position. Guyasuta Investment Advisors Inc.'s holdings in McDonald's were worth $26,577,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Bank of New York Mellon Corp purchased a new position in shares of McDonald's in the 2nd quarter worth $1,359,276,000. Diamant Asset Management Inc. increased its holdings in shares of McDonald's by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock worth $806,917,000 after buying an additional 2,587,986 shares during the last quarter. Corient Private Wealth LLC increased its holdings in shares of McDonald's by 94.7% in the 4th quarter. Corient Private Wealth LLC now owns 1,644,109 shares of the fast-food giant's stock worth $502,489,000 after buying an additional 799,462 shares during the last quarter. Bessemer Group Inc. increased its holdings in shares of McDonald's by 132.1% in the 1st quarter. Bessemer Group Inc. now owns 1,325,880 shares of the fast-food giant's stock worth $412,071,000 after buying an additional 754,596 shares during the last quarter. Finally, State Street Corp raised its position in shares of McDonald's by 1.8% during the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant's stock valued at $9,752,921,000 after buying an additional 646,675 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

Analysts Set New Price Targets

MCD has been the subject of a number of analyst reports. Loop Capital lowered their price target on shares of McDonald's from $301.00 to $273.00 and set a "hold" rating for the company in a report on Wednesday, August 5th. Daiwa Securities Group dropped their price target on McDonald's from $309.00 to $293.00 and set an "outperform" rating for the company in a research report on Thursday, August 6th. Evercore reduced their price objective on McDonald's from $320.00 to $300.00 and set an "outperform" rating on the stock in a research note on Thursday, September 24th. Seaport Research Partners assumed coverage on McDonald's in a research note on Wednesday, September 16th. They set a "neutral" rating on the stock. Finally, Wells Fargo & Company decreased their price objective on McDonald's from $300.00 to $270.00 and set an "overweight" rating on the stock in a research report on Monday, October 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $295.94.

Key Stories Impacting McDonald's

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

• Positive Sentiment: Consumer-stock rotation provided support. Investors have been shifting money out of technology stocks and into beaten-down consumer names, giving McDonald’s and other restaurant stocks a lift. These Consumer Stocks Are Getting a Lift as Investors Rotate Out of Tech
• Positive Sentiment: Options trading indicates near-term bullish positioning. Traders purchased 42,937 MCD call options, about 24% above typical daily call volume. This can signal expectations for a rebound, although it does not guarantee sustained buying.
• Positive Sentiment: Limited-time promotions may help traffic. McDonald’s is bringing back a popular meal and its Halloween Boo Buckets, featuring a Disney-villain theme. These promotions could support customer engagement and sales during the quarter. McDonald’s is bringing back an iconic meal for a limited time
• Positive Sentiment: Dividend status remains a long-term attraction. McDonald’s has become a Dividend King, supported by its franchised business model, royalty income and pricing power. Nevertheless, future dividend growth depends on earnings recovery. McDonald’s Dividend King Status Is Impressive, but Valuation Still Matters

McDonald's Stock Up 1.8%

NYSE MCD opened at $242.67 on Friday. The company has a fifty day moving average of $252.68 and a two-hundred day moving average of $272.30. The firm has a market capitalization of $171.72 billion, a price-to-earnings ratio of 19.71, a PEG ratio of 2.67 and a beta of 0.44. McDonald's Corporation has a 52 week low of $229.20 and a 52 week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The business had revenue of $7.10 billion for the quarter, compared to analysts' expectations of $7.13 billion. During the same quarter in the previous year, the business posted $3.19 earnings per share. The business's revenue was up 3.7% compared to the same quarter last year. Equities research analysts anticipate that McDonald's Corporation will post 12.84 EPS for the current year.

McDonald's Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a $1.93 dividend. This is a boost from McDonald's's previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 annualized dividend and a dividend yield of 3.2%. McDonald's's dividend payout ratio (DPR) is 60.44%.

About McDonald's

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.