McDonald's Corporation $MCD Stock Sold by NFSG Corp

Key Points

• NFSG Corp. cut its McDonald’s stake by 75.4% in the third quarter, selling 8,970 shares and retaining 2,929 shares valued at approximately $676,000. Institutional investors collectively own 70.29% of the company.
• Analysts recently lowered several price targets, but McDonald’s maintains a consensus “Moderate Buy” rating with an average target of $295.94, above its reported trading price of $242.99.
• McDonald’s raised its quarterly dividend to $1.93 per share, equivalent to a $7.72 annualized payout and a 3.2% yield. The company also exceeded quarterly earnings expectations, reporting $3.38 in EPS versus the $3.32 consensus estimate.

NFSG Corp lowered its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 75.4% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,929 shares of the fast-food giant's stock after selling 8,970 shares during the period. NFSG Corp's holdings in McDonald's were worth $676,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently added to or reduced their stakes in the company. Sound Income Strategies LLC boosted its stake in McDonald's by 0.6% in the first quarter. Sound Income Strategies LLC now owns 5,590 shares of the fast-food giant's stock valued at $1,718,000 after acquiring an additional 35 shares in the last quarter. Jacobsen Capital Management lifted its stake in McDonald's by 2.9% in the first quarter. Jacobsen Capital Management now owns 1,267 shares of the fast-food giant's stock valued at $394,000 after buying an additional 36 shares during the last quarter. Sterling Investment Counsel LLC boosted its holdings in shares of McDonald's by 0.7% in the first quarter. Sterling Investment Counsel LLC now owns 5,303 shares of the fast-food giant's stock valued at $1,648,000 after acquiring an additional 37 shares during the period. Legacy Wealth Managment LLC ID boosted its holdings in shares of McDonald's by 11.0% in the first 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 during the period. Finally, Millstone Evans Group LLC grew its position in shares of McDonald's by 2.5% during the first quarter. Millstone Evans Group LLC now owns 1,532 shares of the fast-food giant's stock worth $476,000 after acquiring an additional 38 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Melius Research cut their target price on shares of McDonald's from $250.00 to $230.00 and set a "sell" rating on the stock in a report on Monday, September 28th. Guggenheim decreased their price target on shares of McDonald's from $290.00 to $250.00 and set a "neutral" rating for the company in a research note on Monday, October 5th. TD Cowen decreased their price target on shares of McDonald's from $282.00 to $270.00 and set a "hold" rating for the company in a research note on Thursday, September 24th. Loop Capital lowered their price objective on shares of McDonald's from $301.00 to $273.00 and set a "hold" rating on the stock in a research report on Wednesday, August 5th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of McDonald's from $280.00 to $260.00 and set an "overweight" rating on the stock in a research note on Thursday, September 24th. One investment 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 company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $295.94.

McDonald's Stock Performance

McDonald's stock traded up $0.49 during mid-day trading on Friday, reaching $242.99. 7,235,673 shares of the company were exchanged, compared to its average volume of 6,700,715. McDonald's Corporation has a twelve month low of $229.20 and a twelve month high of $341.75. The firm's 50-day simple moving average is $252.05 and its two-hundred day simple moving average is $272.09. The firm has a market cap of $171.95 billion, a PE ratio of 19.74, a price-to-earnings-growth ratio of 2.72 and a beta of 0.44.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share 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 the consensus estimate of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%. The company's revenue was up 3.7% on a year-over-year basis. During the same period last year, the business posted $3.19 EPS. As a group, equities research analysts anticipate that McDonald's Corporation will post 12.84 EPS for the current 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 dividend of $1.93 per share. This is a boost from McDonald's's previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend is Tuesday, December 1st. McDonald's's dividend payout ratio is 60.44%.

More McDonald's News

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

• Positive Sentiment: McDonald’s is bringing back a popular limited-time meal, while Halloween Boo Buckets are returning with a Disney-themed design. The promotions could support traffic, customer engagement and comparable-store sales. McDonald’s Is Bringing Back a Fan-Favorite Meal
• Positive Sentiment: McDonald’s dividend remains a key attraction: the company has joined the “Dividend King” group after decades of consecutive increases. Income-oriented investors may view the yield above 3% and recurring franchise cash flow favorably. McDonald’s Dividend King Status
• Positive Sentiment: Unusually heavy call-option activity and a broader rotation from technology into beaten-down consumer stocks may be providing additional short-term support for MCD. Consumer Stocks Get a Lift as Investors Rotate Out of Tech
• Neutral Sentiment: Analysts and market commentators generally see the stock as near fair value following its dividend increase. McDonald’s has fallen substantially this year, but investors still need evidence that cash-flow and earnings growth can justify the valuation. McDonald’s May Trade Near Fair Value
• Neutral Sentiment: The company’s planned multibillion-dollar modernization, including drive-thru technology and the “Archy” AI initiative, could improve efficiency over time, although execution and return-on-investment risks remain. McDonald’s Overhaul and AI Drive-Thru
• Negative Sentiment: McDonald’s faces a challenging third-quarter outlook, with weak U.S. sales and questions about value-menu execution. Renewed promotions and operational fixes will need to translate into sustained traffic and earnings growth. Challenging Q3 Outlook
• Negative Sentiment: Some investors argue that an attractive dividend alone is insufficient because the stock’s valuation leaves limited room for disappointment if sales and earnings remain pressured. McDonald’s Dividend Yield and Valuation

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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