McDonald's Corporation $MCD Stock Holdings Lessened by Callahan Advisors LLC

Key Points

• Callahan Advisors LLC reduced its stake in McDonald's Corporation by 3.5%, now holding 58,091 shares, which is valued at approximately $16.97 million.
• McDonald's reported an earnings per share (EPS) of $3.19 for the last quarter, beating estimates, and generating a revenue of $6.84 billion.
• The company declared a quarterly dividend of $1.77, contributing to a 2.3% annualized dividend yield, with a current payout ratio of 60.67%.

Callahan Advisors LLC lowered its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 3.5% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 58,091 shares of the fast-food giant's stock after selling 2,084 shares during the period. McDonald's makes up about 1.5% of Callahan Advisors LLC's investment portfolio, making the stock its 18th largest holding. Callahan Advisors LLC's holdings in McDonald's were worth $16,972,000 as of its most recent filing with the SEC.

Several other institutional investors also recently modified their holdings of MCD. HFM Investment Advisors LLC bought a new position in shares of McDonald's in the first quarter valued at $26,000. Nova Wealth Management Inc. bought a new position in shares of McDonald's in the first quarter valued at $26,000. GFG Capital LLC bought a new position in shares of McDonald's in the second quarter valued at $29,000. Abound Financial LLC bought a new position in shares of McDonald's in the first quarter valued at $30,000. Finally, Redmont Wealth Advisors LLC purchased a new position in McDonald's during the 1st quarter worth approximately $31,000. Institutional investors own 70.29% of the company's stock.

McDonald's Stock Up 0.2%

Shares of NYSE:MCD opened at $305.04 on Thursday. The firm has a fifty day moving average of $306.29 and a two-hundred day moving average of $305.63. The firm has a market capitalization of $217.68 billion, a P/E ratio of 26.14, a price-to-earnings-growth ratio of 3.21 and a beta of 0.50. McDonald's Corporation has a 12-month low of $276.53 and a 12-month high of $326.32.

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

McDonald's Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were paid a $1.77 dividend. This represents a $7.08 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Tuesday, September 2nd. McDonald's's payout ratio is presently 60.67%.

Insider Buying and Selling at McDonald's

In related news, EVP Jonathan Banner sold 1,000 shares of McDonald's stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total value of $310,000.00. Following the completion of the sale, the executive vice president owned 99 shares of the company's stock, valued at approximately $30,690. The trade was a 90.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CMO Edith Morgan Flatley sold 1,000 shares of McDonald's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $315.00, for a total transaction of $315,000.00. Following the completion of the sale, 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 position. The disclosure for this sale can be found here. Insiders sold a total of 6,402 shares of company stock worth $1,973,407 in the last 90 days. 0.25% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several equities analysts have weighed in on the stock. BMO Capital Markets lifted their price objective on shares of McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research report on Thursday, September 4th. KeyCorp reiterated an "overweight" rating and set a $335.00 price objective (up from $325.00) on shares of McDonald's in a research report on Thursday, August 7th. Bank of America lowered their price objective on shares of McDonald's from $327.00 to $322.00 and set a "neutral" rating on the stock in a research report on Friday, July 18th. Morgan Stanley lifted their price objective on shares of McDonald's from $324.00 to $326.00 and gave the stock an "equal weight" rating in a research report on Monday, July 14th. Finally, Guggenheim lowered their price objective on shares of McDonald's from $310.00 to $295.00 and set a "neutral" rating on the stock in a research report on Friday, October 10th. Eleven research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, McDonald's has a consensus rating of "Hold" and an average price target of $324.73.

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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