McDonald's Corporation $MCD Stock Position Increased by Chapin Davis Inc.

Key Points

• Chapin Davis Inc. increased its McDonald’s position by 242.2% in the third quarter, purchasing 5,840 additional shares for a total of 8,251 shares valued at approximately $1.9 million. Institutional investors collectively own 70.29% of MCD.
• McDonald’s reported quarterly earnings of $3.38 per share, exceeding estimates, while revenue reached $7.10 billion and rose 3.7% year over year. The company also raised its quarterly dividend to $1.93, representing a 3.3% annual yield.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $295.94, although several firms recently lowered their targets amid concerns about weak customer traffic, promotional effectiveness and the company’s growth outlook.

Chapin Davis Inc. increased its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 242.2% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 8,251 shares of the fast-food giant's stock after buying an additional 5,840 shares during the period. Chapin Davis Inc.'s holdings in McDonald's were worth $1,905,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Sound Income Strategies LLC grew its holdings in McDonald's by 0.6% during the 1st quarter. Sound Income Strategies LLC now owns 5,590 shares of the fast-food giant's stock valued at $1,718,000 after buying an additional 35 shares in the last quarter. Jacobsen Capital Management grew its position in McDonald's by 2.9% during the first quarter. Jacobsen Capital Management now owns 1,267 shares of the fast-food giant's stock worth $394,000 after buying an additional 36 shares in the last quarter. Sterling Investment Counsel LLC increased its stake in McDonald's by 0.7% in the 1st quarter. Sterling Investment Counsel LLC now owns 5,303 shares of the fast-food giant's stock worth $1,648,000 after acquiring an additional 37 shares during the last quarter. Legacy Wealth Managment LLC ID raised its holdings in shares of McDonald's by 11.0% in the 1st quarter. Legacy Wealth Managment LLC ID now owns 372 shares of the fast-food giant's stock valued at $116,000 after acquiring an additional 37 shares in the last quarter. Finally, Millstone Evans Group LLC boosted its position in shares of McDonald's by 2.5% during the 1st quarter. Millstone Evans Group LLC now owns 1,532 shares of the fast-food giant's stock valued at $476,000 after acquiring an additional 38 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald's Stock Performance

Shares of McDonald's stock opened at $236.64 on Friday. McDonald's Corporation has a 52-week low of $229.20 and a 52-week high of $341.75. The stock has a market capitalization of $167.46 billion, a price-to-earnings ratio of 19.22, a price-to-earnings-growth ratio of 2.58 and a beta of 0.44. The company has a fifty day moving average of $256.02 and a 200-day moving average of $274.80.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The firm's quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter last year, the firm earned $3.19 EPS. On average, equities research analysts forecast that McDonald's Corporation will post 12.85 earnings per share for the current fiscal year.

McDonald's Increases Dividend

The business 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 $1.93 dividend. This is an increase from McDonald's's previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Tuesday, December 1st. McDonald's's dividend payout ratio (DPR) is presently 62.71%.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s outperformed during a weaker broader market session, suggesting investors may be viewing the stock as a defensive consumer name. Its high-margin, approximately 98%-franchised model and strong cash generation remain important supports. Why the Market Dipped But McDonald's Gained Today
• Positive Sentiment: BetterInvesting Magazine identified MCD as an “Undervalued Stock,” while commentary highlighted its profitability, cash flows and compressed valuation after a prolonged decline. The company’s accelerated dividend decision and new U.S. president also signal a continued focus on shareholder returns and improving domestic execution. BetterInvesting Magazine Update
• Neutral Sentiment: McDonald’s is promoting its Monopoly campaign, pickle-focused products and Chicago Marathon pickle-juice activation. These initiatives could boost traffic and brand engagement, but their direct effect on revenue and earnings is uncertain. McDonald's Monopoly Returns
• Negative Sentiment: McDonald’s faces a proposed federal class-action lawsuit alleging its AI-enhanced pricing tool helps franchisees exchange nonpublic sales data and coordinate prices. McDonald’s denies the allegations, saying the system only recommends prices and does not set menu prices, but the case creates potential antitrust costs, reputational damage and regulatory risk. McDonald's Sued Over AI Pricing Tool
• Negative Sentiment: Sanford C. Bernstein lowered its price target from $295 to $250 and assigned a “market perform” rating, reflecting concern about McDonald’s growth outlook. Reports also say $5 meals and other promotions have not restored customer visits, while franchisees are resisting costly restaurant upgrades connected to the company’s $8.5 billion modernization plan. McDonald's Deals Are Not Winning Customers Back

Analyst Ratings Changes

Several research analysts recently weighed in on MCD shares. Oppenheimer decreased their price objective on shares of McDonald's from $325.00 to $295.00 and set an "outperform" rating on the stock in a research report on Thursday, September 24th. TD Cowen lowered their price objective on shares of McDonald's from $282.00 to $270.00 and set a "hold" rating on the stock in a research report on Thursday, September 24th. Royal Bank Of Canada reduced their target price on McDonald's from $290.00 to $285.00 and set a "sector perform" rating on the stock in a research note on Thursday, September 24th. Tigress Financial raised their price target on McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a research report on Friday, July 17th. Finally, Deutsche Bank Aktiengesellschaft dropped their price target on McDonald's from $325.00 to $300.00 and set a "buy" rating for the company in a research note on Monday, September 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, McDonald's has an average rating of "Moderate Buy" and an average price target of $295.94.

About McDonald's

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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