McDonald's Corporation (NYSE:MCD) Shares Bought by NBW Capital LLC

Key Points

• NBW Capital LLC increased its holdings in McDonald's by 82.5% during the first quarter, making it the firm's 9th largest position worth $13.25 million.
• McDonald's reported earnings of $3.19 per share for the last quarter, surpassing analysts' expectations, with a revenue increase of 5.4% year-over-year.
• The company announced a quarterly dividend of $1.77 per share, representing an annualized dividend yield of 2.3%.

NBW Capital LLC raised its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 82.5% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 42,406 shares of the fast-food giant's stock after purchasing an additional 19,173 shares during the quarter. McDonald's accounts for approximately 2.9% of NBW Capital LLC's investment portfolio, making the stock its 9th largest holding. NBW Capital LLC's holdings in McDonald's were worth $13,246,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in the business. Vanguard Group Inc. lifted its position in shares of McDonald's by 0.3% during the first quarter. Vanguard Group Inc. now owns 70,409,095 shares of the fast-food giant's stock worth $21,993,689,000 after purchasing an additional 239,753 shares during the last quarter. Capital Research Global Investors increased its stake in shares of McDonald's by 5.2% during the fourth quarter. Capital Research Global Investors now owns 10,652,445 shares of the fast-food giant's stock valued at $3,088,037,000 after buying an additional 531,070 shares during the period. Northern Trust Corp increased its stake in shares of McDonald's by 11.2% during the fourth quarter. Northern Trust Corp now owns 8,867,193 shares of the fast-food giant's stock valued at $2,570,511,000 after buying an additional 895,896 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of McDonald's by 11.2% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,019,019 shares of the fast-food giant's stock valued at $1,454,963,000 after buying an additional 504,085 shares during the period. Finally, Goldman Sachs Group Inc. increased its stake in shares of McDonald's by 19.6% during the first quarter. Goldman Sachs Group Inc. now owns 4,982,825 shares of the fast-food giant's stock valued at $1,556,485,000 after buying an additional 815,768 shares during the period. 70.29% of the stock is currently owned by institutional investors.

McDonald's Trading Down 0.7%

Shares of MCD stock traded down $2.29 during trading hours on Friday, reaching $305.62. 2,621,959 shares of the company's stock were exchanged, compared to its average volume of 3,681,905. McDonald's Corporation has a 1 year low of $265.33 and a 1 year high of $326.32. The stock has a market cap of $218.09 billion, a PE ratio of 26.19, a PEG ratio of 3.19 and a beta of 0.52. The stock's fifty day moving average price is $298.57 and its two-hundred day moving average price is $304.49.

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

McDonald's Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be issued a dividend of $1.77 per share. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.3%. McDonald's's payout ratio is 60.67%.

Insider Buying and Selling

In related news, CMO Edith Morgan Flatley sold 976 shares of McDonald's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $303.50, for a total transaction of $296,216.00. Following the completion of the sale, the chief marketing officer owned 7,882 shares of the company's stock, valued at $2,392,187. The trade was a 11.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,487 shares of McDonald's stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total value of $770,970.00. Following the sale, the executive vice president directly owned 8,754 shares of the company's stock, valued at $2,713,740. This trade represents a 22.12% decrease in their position. The disclosure for this sale can be found here. Insiders sold 7,280 shares of company stock valued at $2,215,178 over the last quarter. 0.25% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Melius assumed coverage on McDonald's in a research note on Monday, July 14th. They set a "sell" rating and a $250.00 price target on the stock. BMO Capital Markets restated an "outperform" rating and set a $350.00 price target (up previously from $345.00) on shares of McDonald's in a research note on Thursday. Barclays raised their price target on McDonald's from $355.00 to $360.00 and gave the company an "overweight" rating in a research note on Thursday. Morgan Stanley raised their price target on McDonald's from $324.00 to $326.00 and gave the company an "equal weight" rating in a research note on Monday, July 14th. Finally, TD Cowen raised their price target on McDonald's from $305.00 to $315.00 and gave the company a "hold" rating in a research note on Wednesday. Two investment analysts have rated the stock with a sell rating, thirteen have given a hold rating and thirteen have assigned a buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $326.87.

About McDonald's

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.