McDonald's Corporation $MCD Stake Reduced by Calamos Advisors LLC

Key Points

• Calamos Advisors reduced its McDonald’s stake by 5% in the second quarter, selling 9,177 shares and retaining 175,000 shares valued at approximately $47.3 million. Institutional investors collectively own 70.29% of MCD.
• McDonald’s shares were trading near $265.43, down 2.7%, despite quarterly EPS of $3.38 beating estimates; revenue rose 3.7% year over year but fell slightly short of forecasts.
• The company declared a quarterly dividend of $1.86, equivalent to $7.44 annually and a 2.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $325.44, although recent insider selling and concerns about weak U.S. sales remain risks.

Calamos Advisors LLC lowered its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 5.0% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 175,000 shares of the fast-food giant's stock after selling 9,177 shares during the period. Calamos Advisors LLC's holdings in McDonald's were worth $47,304,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in MCD. Hamilton Point Investment Advisors LLC boosted its holdings in McDonald's by 1.8% during the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant's stock worth $535,000 after buying an additional 31 shares in the last quarter. Encompass More Asset Management lifted its position in shares of McDonald's by 1.5% during the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant's stock valued at $648,000 after acquiring an additional 32 shares during the last quarter. Richmond Investment Services LLC boosted its stake in shares of McDonald's by 1.4% during the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant's stock worth $696,000 after acquiring an additional 32 shares in the last quarter. Papamarkou Wellner Asset Management inc. grew its holdings in shares of McDonald's by 0.4% in the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant's stock worth $2,692,000 after acquiring an additional 32 shares during the last quarter. Finally, Physician Wealth Advisors Inc. grew its holdings in shares of McDonald's by 1.6% in the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock worth $642,000 after acquiring an additional 33 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is taking direct aim at Starbucks with a menu strategy focused on afternoon traffic. Expanded beverage and snack offerings could help the company capture additional dayparts and improve sales momentum. McDonald's Takes Direct Aim at Starbucks
• Positive Sentiment: New limited-time fall drinks and other menu items, along with the Hello Kitty and Godzilla Happy Meal promotion, could support customer visits and boost seasonal sales. McDonald's Has 4 New Limited-Time Menu Items
• Positive Sentiment: An app that helps restaurants fill open shifts has reportedly reduced the cost of missed shifts at one McDonald’s location. If scalable, better staffing could improve service consistency, labor efficiency, and restaurant-level profitability. Missed shifts were costly to this McDonald's
• Positive Sentiment: A bullish analyst cited a consensus price target substantially above the current trading level, arguing that MCD could offer significant upside after its recent decline. This is supportive sentiment, though targets remain estimates rather than catalysts. McDonald's Keeps Cratering
• Neutral Sentiment: Xbox-related in-game rewards and other international or promotional menu stories increase brand engagement but are unlikely to materially change near-term earnings expectations. Xbox 25th Anniversary McDonald's Rewards
• Neutral Sentiment: One valuation review described MCD as roughly fairly valued on a discounted-cash-flow basis, while market multiples suggested modest undervaluation. The assessment offers some downside support but acknowledges weaker recent U.S. sales growth. McDonald's Stock Looks Fairly Valued
• Negative Sentiment: Commentary on McDonald’s latest earnings characterized the results and execution as underwhelming, reinforcing concerns about soft same-store sales and the effectiveness of recent initiatives. Jim Cramer Breaks Down McDonald's Earnings
• Negative Sentiment: Former Taco Bell executive Greg Creed criticized McDonald’s Red Bull beverage strategy, raising questions about product-market fit and whether the new drinks will meaningfully improve afternoon demand. Taco Bell's Former Boss Criticizes McDonald's Red Bull Drink

McDonald's Trading Down 2.7%

Shares of MCD stock opened at $265.43 on Tuesday. McDonald's Corporation has a 1-year low of $260.96 and a 1-year high of $341.75. The company has a market capitalization of $187.83 billion, a price-to-earnings ratio of 21.56, a P/E/G ratio of 3.05 and a beta of 0.41. The stock's fifty day simple moving average is $273.56 and its 200-day simple moving average is $294.81.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.06. The firm had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.McDonald's's quarterly revenue was up 3.7% on a year-over-year basis. During the same period in the previous year, the firm earned $3.19 earnings per share. On average, sell-side analysts predict 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 issued a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. McDonald's's dividend payout ratio is currently 60.44%.

Insider Buying and Selling

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the business's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the transaction, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 8,348 shares of company stock valued at $2,355,634 over the last three months. 0.26% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on MCD. Evercore set a $320.00 target price on McDonald's in a report on Thursday, July 23rd. Weiss Ratings cut McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Piper Sandler set a $286.00 price objective on shares of McDonald's in a research note on Tuesday, August 4th. Tigress Financial raised their target price on shares of McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a report on Friday, July 17th. Finally, Mizuho dropped their target price on shares of McDonald's from $300.00 to $290.00 and set a "neutral" rating on the stock in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, McDonald's has an average rating of "Moderate Buy" and a consensus target price of $325.44.

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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