McDonald's Corporation $MCD Stake Raised by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group Inc. has increased its stake in McDonald's Corporation by 1.1%, now owning approximately 0.29% of the company, valued at $598.7 million.
• McDonald's has announced a quarterly dividend increase to $1.86 per share, which will be paid on December 15, representing an annualized yield of 2.4%.
• The company reported a 5.4% year-over-year revenue increase for the last quarter, with earnings per share of $3.19, exceeding analysts' expectations.

Sumitomo Mitsui Trust Group Inc. increased its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 1.1% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,049,249 shares of the fast-food giant's stock after acquiring an additional 23,003 shares during the period. Sumitomo Mitsui Trust Group Inc. owned about 0.29% of McDonald's worth $598,729,000 at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Nova Wealth Management Inc. acquired a new position in McDonald's in the 1st quarter worth about $26,000. HFM Investment Advisors LLC acquired a new position in shares of McDonald's during the 1st quarter valued at about $26,000. Abound Financial LLC acquired a new position in shares of McDonald's during the 1st quarter valued at about $30,000. GFG Capital LLC acquired a new position in shares of McDonald's during the 2nd quarter valued at about $29,000. Finally, Redmont Wealth Advisors LLC acquired a new position in shares of McDonald's during the 1st quarter valued at about $31,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald's Stock Performance

NYSE MCD opened at $306.30 on Friday. The stock has a fifty day moving average of $306.55 and a 200-day moving average of $305.56. The stock has a market capitalization of $218.58 billion, a P/E ratio of 26.25, a price-to-earnings-growth ratio of 3.28 and a beta of 0.50. McDonald's Corporation has a 52 week low of $276.53 and a 52 week high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, beating the consensus estimate of $3.15 by $0.04. McDonald's had a negative return on equity of 225.52% and a net margin of 32.21%.The company had revenue of $6.84 billion during the quarter, compared to analysts' expectations of $6.68 billion. During the same period last year, the firm earned $2.97 EPS. The business's revenue for the quarter was up 5.4% on a year-over-year basis. Equities research analysts forecast that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 15th. Investors of record on Monday, December 1st will be paid a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.4%. This is a boost from McDonald's's previous quarterly dividend of $1.77. The ex-dividend date of this dividend is Monday, December 1st. McDonald's's payout ratio is presently 60.67%.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on MCD shares. Weiss Ratings restated a "buy (b)" rating on shares of McDonald's in a research note on Wednesday, October 8th. Citigroup reduced their price objective on McDonald's from $381.00 to $375.00 and set a "buy" rating for the company in a research report on Tuesday. TD Cowen raised their price objective on McDonald's from $305.00 to $315.00 and gave the stock a "hold" rating in a research report on Wednesday, August 6th. Stifel Nicolaus raised their price objective on McDonald's from $300.00 to $315.00 and gave the stock a "hold" rating in a research report on Friday, August 22nd. Finally, BMO Capital Markets raised their target price on McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research report on Thursday, September 4th. Eleven research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $324.50.

Insider Buying and Selling at McDonald's

In other McDonald's news, CMO Edith Morgan Flatley sold 1,000 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $315.00, for a total value of $315,000.00. Following the completion of the transaction, the chief marketing officer directly owned 6,858 shares of the company's stock, valued at approximately $2,160,270. The trade was a 12.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,487 shares of the company's stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total value of $770,970.00. Following the transaction, the executive vice president directly owned 8,754 shares of the company's stock, valued at $2,713,740. This represents a 22.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 5,463 shares of company stock valued at $1,692,186. Company insiders own 0.25% of the company's stock.

McDonald's Profile

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.

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