McDonald's Corporation $MCD Stock: Evergreen Capital Management LLC Decreases Holdings

Key Points

• Evergreen Capital Management reduced its McDonald’s stake by 43.7% in the third quarter, selling 7,566 shares and retaining 9,730 shares valued at approximately $2.25 million.
• Other major institutional investors increased their positions, and institutions collectively owned 70.29% of McDonald’s outstanding shares.
• Analysts maintained a generally positive outlook, with a consensus “Moderate Buy” rating and a $295.64 target price. McDonald’s also raised its quarterly dividend to $1.93 per share, equivalent to a 3.1% yield.

Evergreen Capital Management LLC reduced its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 43.7% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 9,730 shares of the fast-food giant's stock after selling 7,566 shares during the period. Evergreen Capital Management LLC's holdings in McDonald's were worth $2,247,000 at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of the business. State Street Corp lifted its position in McDonald's by 1.8% in 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 purchasing an additional 646,675 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in McDonald's during the second quarter worth about $1,359,276,000. Arrowstreet Capital Limited Partnership grew its stake in shares of McDonald's by 17.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant's stock worth $1,130,587,000 after purchasing an additional 533,448 shares during the last quarter. Swiss National Bank grew its position in McDonald's by 6.9% in the first quarter. Swiss National Bank now owns 2,089,980 shares of the fast-food giant's stock worth $649,545,000 after buying an additional 134,480 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of McDonald's by 3.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,909,321 shares of the fast-food giant's stock worth $593,366,000 after purchasing an additional 62,562 shares during the period. Institutional investors own 70.29% of the company's stock.

Analysts Set New Price Targets

MCD has been the topic of a number of recent analyst reports. Sanford C. Bernstein cut their price target on shares of McDonald's from $295.00 to $250.00 and set a "market perform" rating on the stock in a report on Thursday, October 8th. Bank of America boosted their price target on McDonald's from $339.00 to $343.00 in a research note on Wednesday, August 5th. Loop Capital cut their target price on McDonald's from $301.00 to $273.00 and set a "hold" rating on the stock in a report on Wednesday, August 5th. HC Wainwright set a $250.00 target price on McDonald's in a research report on Friday, September 25th. Finally, Royal Bank Of Canada decreased their target price on McDonald's from $290.00 to $285.00 and set a "sector perform" rating for the company in a research report on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $295.64.

More McDonald's News

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

• Positive Sentiment: BTIG reaffirmed its “Buy” rating and set a $295 price target, implying substantial potential upside from recent trading levels. The endorsement supports the view that McDonald’s valuation and earnings outlook remain attractive. BTIG rating report
• Positive Sentiment: The McRib has returned in select U.S. markets for a limited time. The highly recognizable product could increase restaurant traffic, digital engagement and promotional sales, although the geographically limited rollout reduces its companywide financial impact. USA Today McRib article
• Positive Sentiment: Ending McDonald’s more than 30-year FIFA World Cup sponsorship may reduce marketing costs and allow the company to redirect spending toward owned brands and promotions. The potential savings must be balanced against the loss of global visibility. NRN sponsorship article
• Neutral Sentiment: Recent commentary describes McDonald’s as an attractive, potentially underpriced restaurant stock, but this is an opinion rather than a new company disclosure. Seeking Alpha valuation analysis
• Negative Sentiment: Franchisees reportedly cited tough meat and other quality problems with McDonald’s new hand-breaded chicken. Execution issues could slow adoption of a key growth initiative, pressure franchisee economics and hurt customer satisfaction. MarketWatch chicken article
• Negative Sentiment: Erste Group Bank lowered its fiscal 2027 EPS estimates for McDonald’s. Estimate reductions can weigh on valuation and suggest analysts see potential pressure on sales, margins or growth expectations. EPS estimate article

McDonald's Stock Up 1.0%

Shares of MCD opened at $250.93 on Tuesday. McDonald's Corporation has a 12-month low of $229.20 and a 12-month high of $341.75. The firm has a market capitalization of $177.57 billion, a price-to-earnings ratio of 20.38, a P/E/G ratio of 2.83 and a beta of 0.44. The stock's 50-day moving average price is $249.77 and its 200 day moving average price is $284.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping the consensus estimate 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 analysts' expectations of $7.13 billion. During the same period last year, the business earned $3.19 earnings per share. McDonald's's quarterly revenue was up 3.7% compared to the same quarter last year. Equities research analysts expect that McDonald's Corporation will post 12.84 EPS for the current year.

McDonald's Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a dividend of $1.93 per share. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.1%. 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%.

McDonald's 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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