McDonald's Corporation $MCD Stock Acquired by Envestnet Portfolio Solutions Inc.

Key Points

• Envestnet Portfolio Solutions increased its McDonald’s position by 41.3% in the second quarter, buying 6,980 additional shares for a total of 23,867 shares valued at approximately $6.45 million. Institutional investors collectively own 70.29% of the stock.
• McDonald’s unveiled its “NEXT” strategy focused on restaurant remodels, employee training, AI, digital ordering and expanded menu offerings, but plans to provide up to $8.5 billion in franchisee support through 2036 could weigh on near-term cash flow.
• The stock traded near its one-year low at $237.08, while the company raised its quarterly dividend to $1.93, offering a yield of about 3.3%. Analysts maintain a “Moderate Buy” consensus, though several have reduced price targets amid concerns about inflation, flat traffic and execution.

Envestnet Portfolio Solutions Inc. grew its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 41.3% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 23,867 shares of the fast-food giant's stock after buying an additional 6,980 shares during the quarter. Envestnet Portfolio Solutions Inc.'s holdings in McDonald's were worth $6,451,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. State Street Corp increased its stake in shares of McDonald's by 1.8% in the second quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant's stock worth $9,752,921,000 after purchasing an additional 646,675 shares in the last quarter. Security National Bank of Sioux City Iowa IA bought a new stake in McDonald's during the second quarter valued at about $71,000. Anchor Investment Management LLC lifted its position in shares of McDonald's by 3.6% in the second quarter. Anchor Investment Management LLC now owns 15,607 shares of the fast-food giant's stock valued at $4,219,000 after acquiring an additional 537 shares in the last quarter. Bullseye Investment Management LLC purchased a new position in shares of McDonald's in the second quarter valued at about $133,000. Finally, Marathon Wealth Advisors LLC lifted its position in shares of McDonald's by 1.4% in the second quarter. Marathon Wealth Advisors LLC now owns 10,510 shares of the fast-food giant's stock valued at $2,841,000 after acquiring an additional 148 shares in the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting McDonald's

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

• Positive Sentiment: McDonald’s unveiled its “NEXT” strategy, which includes restaurant remodels, employee training, AI-enabled operations, improved digital ordering, and expanded chicken, beverage and protein-focused menu offerings. Management is targeting stronger operating margins and free-cash-flow conversion by 2030. McDonald’s will spend big on restaurant upgrades and training
• Positive Sentiment: The company raised its dividend by nearly 4%, supporting the stock’s income appeal after the selloff. Some analysts also view the lower valuation and roughly 3.2% yield as creating a more attractive entry point. McDonald’s increased its dividend
• Neutral Sentiment: Analysts remain divided. Oppenheimer, JPMorgan, BTIG and RBC maintained positive or neutral ratings, but lowered their price targets; Baird moved to neutral with a $250 target. The revisions imply upside from current levels but signal reduced confidence in near-term execution.
• Negative Sentiment: The main pressure is the planned $8.5 billion in franchisee support through 2036, including approximately $5 billion through 2030. Investors are concerned that rent relief, remodels, technology upgrades and training will require substantial near-term cash outlays before producing stronger sales or margins. McDonald’s outlines $8.5 billion franchisee support plan
• Negative Sentiment: CEO Chris Kempczinski warned that elevated inflation and flat restaurant traffic may persist, particularly as lower-income consumers struggle with affordability. That weak outlook overshadowed the longer-term growth initiatives and prompted multiple analyst target cuts. McDonald’s CEO expects high inflation and flat traffic to continue

McDonald's Price Performance

NYSE:MCD opened at $237.08 on Friday. The company has a market cap of $167.77 billion, a price-to-earnings ratio of 19.26, a PEG ratio of 2.71 and a beta of 0.41. McDonald's Corporation has a 1 year low of $234.03 and a 1 year high of $341.75. The stock's 50 day simple moving average is $262.85 and its two-hundred day simple moving average is $281.07.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. During the same period in the prior year, the company earned $3.19 EPS. The company's quarterly revenue was up 3.7% compared to the same quarter last year. As a group, analysts anticipate that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be issued a $1.93 dividend. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Tuesday, December 1st. This is a positive change from McDonald's's previous quarterly dividend of $1.86. McDonald's's payout ratio is 60.44%.

Analyst Upgrades and Downgrades

MCD has been the subject of several research analyst reports. Morgan Stanley cut their target price on McDonald's from $319.00 to $308.00 and set an "equal weight" rating for the company in a research report on Monday, September 14th. Argus dropped their price target on McDonald's from $320.00 to $310.00 and set a "buy" rating for the company in a research note on Wednesday, August 26th. Citigroup cut their price objective on shares of McDonald's from $345.00 to $310.00 and set a "buy" rating for the company in a report on Thursday, September 17th. Robert W. Baird reduced their price objective on shares of McDonald's from $285.00 to $250.00 and set a "neutral" rating on the stock in a research report on Thursday. Finally, Evercore lowered their target price on shares of McDonald's from $320.00 to $300.00 and set an "outperform" rating on the stock in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, McDonald's currently has an average rating of "Moderate Buy" and an average price target of $302.50.

McDonald's Company 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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