McDonald's Corporation $MCD Stock: Commonwealth Equity Services LLC Reduces Stake

Key Points

• Commonwealth Equity Services cut its McDonald’s stake by 4.4% in the third quarter, selling 19,557 shares. It held 426,981 shares worth about $98.6 million at quarter-end.
• McDonald’s quarterly earnings were mixed: adjusted earnings of $3.57 per share beat estimates, but revenue of $7.16 billion fell short of expectations.
• The company raised its quarterly dividend to $1.93 per share, up from $1.86, equivalent to an annualized dividend of $7.72 and a 2.8% yield.

Commonwealth Equity Services LLC lessened its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 4.4% during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 426,981 shares of the fast-food giant's stock after selling 19,557 shares during the quarter. Commonwealth Equity Services LLC owned about 0.06% of McDonald's worth $98,607,000 at the end of the most recent quarter.

Other large investors also recently made changes to their positions in the company. GKV Capital Management Co. Inc. acquired a new position in McDonald's during the 1st quarter worth approximately $33,000. Burkett Financial Services LLC grew its position in shares of McDonald's by 2,312.5% in the 3rd quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant's stock valued at $45,000 after acquiring an additional 185 shares during the period. POM Investment Strategies LLC grew its position in shares of McDonald's by 46.2% in the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant's stock valued at $47,000 after acquiring an additional 55 shares during the period. Westfuller Advisors LLC increased its stake in shares of McDonald's by 140.0% during the 2nd quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant's stock worth $49,000 after purchasing an additional 105 shares during the last quarter. Finally, Mountain Hill Investment Partners Corp. raised its holdings in shares of McDonald's by 777.8% in the 3rd quarter. Mountain Hill Investment Partners Corp. now owns 237 shares of the fast-food giant's stock valued at $55,000 after purchasing an additional 210 shares during the period. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's News Summary

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

• Positive Sentiment: Argus raised its price target to $320 from $310 and reiterated a “buy” rating, signaling confidence in the stock’s prospects. Argus rating
• Neutral Sentiment: McDonald’s is testing value bundles at nearly 2,000 U.S. restaurants, ahead of a planned national value platform in early 2027. The deals may help bring back customers, but the company is still assessing their effect on traffic and orders. McDonald’s value-bundle test
• Neutral Sentiment: Third-quarter profit beat analyst estimates, but revenue missed and U.S. comparable sales declined. That mixed backdrop helps explain why investors are watching for evidence that value promotions can sustain a domestic recovery. Q3 earnings and U.S. traffic
• Negative Sentiment: Consumers have filed a lawsuit alleging McDonald’s labeled McCafé drinks “sugar free” despite some containing as much as 18 grams of sugar. The allegations are unproven, but the case could create legal and reputational risk. McCafé labeling lawsuit
• Negative Sentiment: Freedom Broker cut its rating from “buy” to “hold” and lowered its price target to $298 from $305, adding a more cautious view alongside the recent analyst optimism. Freedom Broker rating change

Analyst Ratings Changes

A number of research analysts recently weighed in on MCD shares. Jefferies Financial Group decreased their target price on McDonald's from $260.00 to $250.00 and set an "overweight" rating on the stock in a report on Tuesday, September 29th. HC Wainwright set a $250.00 price target on shares of McDonald's in a research note on Friday, September 25th. Rothschild & Co Redburn reduced their price objective on McDonald's from $306.00 to $285.00 in a report on Wednesday, August 26th. JPMorgan Chase & Co. increased their target price on McDonald's from $250.00 to $270.00 and gave the stock an "overweight" rating in a research note on Thursday. Finally, DZ Bank reissued a "buy" rating on shares of McDonald's in a report on Thursday, September 24th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $297.82.

McDonald's Stock Down 0.6%

MCD opened at $276.36 on Friday. The stock has a market cap of $195.56 billion, a PE ratio of 21.86, a price-to-earnings-growth ratio of 3.03 and a beta of 0.42. The company has a fifty day moving average of $248.76 and a 200-day moving average of $282.57. McDonald's Corporation has a twelve month low of $229.20 and a twelve month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Wednesday, November 4th. The fast-food giant reported $3.57 EPS for the quarter, beating the consensus estimate of $3.38 by $0.19. The firm had revenue of $7.16 billion during the quarter, compared to the consensus estimate of $7.28 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%. The company's quarterly revenue was up 1.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.22 earnings per share. Sell-side analysts anticipate that McDonald's Corporation will post 12.84 EPS for the current fiscal year.

McDonald's Increases Dividend

The business 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 is an increase from McDonald's's previous quarterly dividend of $1.86. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a dividend yield of 2.8%. McDonald's's payout ratio is presently 58.86%.

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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