McDonald's Corporation $MCD Stock Holdings Lowered by Rit Capital Partners PLC

Key Points

• Rit Capital Partners cut its McDonald’s stake by 21.1% in Q1, selling 18,100 shares and leaving it with 67,500 shares worth about $21.0 million.
• McDonald’s latest earnings beat expectations, with EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion, up 9.4% year over year.
• The stock has been under pressure, opening near its 52-week low at $263.76, while analysts still hold a Moderate Buy consensus with an average price target of $336.32.

Rit Capital Partners PLC lessened its position in McDonald's Corporation (NYSE:MCD - Free Report) by 21.1% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 67,500 shares of the fast-food giant's stock after selling 18,100 shares during the period. McDonald's makes up 5.6% of Rit Capital Partners PLC's portfolio, making the stock its 11th biggest position. Rit Capital Partners PLC's holdings in McDonald's were worth $20,977,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of MCD. Peterson Wealth Services boosted its stake in McDonald's by 3,294.5% during the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant's stock valued at $3,600,000 after buying an additional 11,432 shares in the last quarter. Harbour Investments Inc. raised its position in McDonald's by 84.4% in the fourth quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock worth $10,853,000 after acquiring an additional 16,252 shares in the last quarter. Capital International Sarl lifted its holdings in McDonald's by 10.4% in the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant's stock valued at $19,639,000 after acquiring an additional 6,079 shares during the last quarter. North Dakota State Investment Board bought a new position in shares of McDonald's during the 4th quarter valued at about $7,493,000. Finally, Pittenger & Anderson Inc. boosted its position in shares of McDonald's by 21.9% during the 4th quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock valued at $6,567,000 after purchasing an additional 3,866 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently commented on MCD shares. KeyCorp reiterated an "overweight" rating on shares of McDonald's in a report on Wednesday, July 15th. Evercore set a $350.00 price target on shares of McDonald's in a research report on Friday, May 8th. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a report on Friday, June 12th. Robert W. Baird set a $305.00 price target on McDonald's in a report on Thursday, May 7th. Finally, Barclays cut their price objective on McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $336.32.

Insider Buying and Selling

In related news, insider Joseph M. Erlinger sold 5,252 shares of the firm'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 value of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,681 shares of company stock valued at $2,456,440 in the last ninety days. Company insiders own 0.26% of the company's stock.

McDonald's Trading Down 1.5%

NYSE MCD opened at $263.76 on Wednesday. McDonald's Corporation has a 1 year low of $263.65 and a 1 year high of $341.75. The company has a market cap of $187.40 billion, a PE ratio of 21.74, a PEG ratio of 2.87 and a beta of 0.41. The stock's 50-day moving average price is $276.71 and its two-hundred day moving average price is $299.70.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping the consensus estimate of $2.74 by $0.09. The company had revenue of $6.52 billion during the quarter, compared to analysts' expectations of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The business's revenue for the quarter was up 9.4% on a year-over-year basis. During the same period last year, the company posted $2.67 earnings per share. Research analysts forecast that McDonald's Corporation will post 12.86 EPS for the current fiscal year.

McDonald's Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were given a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Tuesday, June 2nd. McDonald's's dividend payout ratio is 61.34%.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: Several bullish commentaries argue McDonald’s recent weakness may be an opportunity, citing improving top- and bottom-line growth, international resilience, and compressed earnings multiples that could make the stock more attractive. McDonald's Sell-Off Is Your Opportunity
• Positive Sentiment: Another analyst upgrade says McDonald’s consistency deserves a higher multiple, pointing to faster recent revenue and earnings growth as evidence of a potential turnaround. McDonald's: Consistency Deserves A Better Multiple (Rating Upgrade)
• Positive Sentiment: Menu innovation remains a supportive storyline, with McDonald’s rolling out new breakfast biscuits, a honey brown butter biscuit, and a Caesar menu that could help drive traffic and keep the brand in the conversation. McDonald’s Just Added 2 New Biscuits To Their Breakfast Menu
• Neutral Sentiment: Recent consumer-interest articles and product reviews highlight new limited-time menu items, but these are not yet proven to materially change earnings expectations. Review: McDonald's Caesar sauce is the tangy menu addition we didn't know we needed
• Negative Sentiment: Zacks noted that McDonald’s stock fell while the broader market improved, reinforcing the view that investors are rotating away from the name for now. McDonald's (MCD) Stock Declines While Market Improves: Some Information for Investors
• Negative Sentiment: Bearish coverage says McDonald’s still may not be cheap enough despite the pullback, suggesting the market remains concerned about upside versus risk. McDonald's: Still Not Good Enough

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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