Fayez Sarofim & Co Buys 2,301 Shares of McDonald's Corporation (NYSE:MCD)

Key Points

• Fayez Sarofim & Co has increased its stake in McDonald's Corporation by 0.1%, now owning 2,784,942 shares, which represents 2.2% of its portfolio.
• McDonald's recently reported earnings of $3.19 per share for the last quarter, exceeding expectations, with revenue of $6.84 billion.
• The company declared a quarterly dividend of $1.77, with a payout ratio of 62.49%, scheduled for payment on September 16th.

Fayez Sarofim & Co increased its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 0.1% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,784,942 shares of the fast-food giant's stock after buying an additional 2,301 shares during the period. McDonald's comprises about 2.2% of Fayez Sarofim & Co's investment portfolio, making the stock its 11th largest position. Fayez Sarofim & Co owned approximately 0.39% of McDonald's worth $874,821,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Mascagni Wealth Management Inc. acquired a new position in McDonald's during the fourth quarter valued at $25,000. Abound Financial LLC purchased a new position in McDonald's during the first quarter valued at approximately $30,000. Pinney & Scofield Inc. acquired a new position in McDonald's in the 4th quarter valued at approximately $29,000. Redmont Wealth Advisors LLC purchased a new stake in McDonald's in the 1st quarter worth approximately $31,000. Finally, Financial Gravity Asset Management Inc. purchased a new position in shares of McDonald's during the 1st quarter valued at $31,000. Institutional investors own 70.29% of the company's stock.

Insiders Place Their Bets

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,487 shares of the company's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $310.00, for a total transaction of $770,970.00. Following the completion of the sale, the executive vice president directly owned 8,754 shares in the company, valued at $2,713,740. This represents a 22.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 939 shares of McDonald's stock in a transaction that occurred on Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total value of $281,221.11. Following the completion of the transaction, the insider directly owned 9,283 shares in the company, valued at $2,780,165.67. This trade represents a 9.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 7,280 shares of company stock valued at $2,215,178. 0.25% of the stock is currently owned by corporate insiders.

McDonald's Price Performance

Shares of NYSE MCD traded down $2.29 during trading on Friday, reaching $305.62. 2,621,959 shares of the stock traded hands, compared to its average volume of 3,681,905. The company has a 50-day moving average of $298.57 and a 200-day moving average of $304.33. McDonald's Corporation has a 52-week low of $265.33 and a 52-week high of $326.32. The stock has a market capitalization of $218.09 billion, a P/E ratio of 26.19, a price-to-earnings-growth ratio of 3.21 and a beta of 0.52.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data 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 for the quarter, compared to analyst estimates of $6.68 billion. McDonald's had a negative return on equity of 225.52% and a net margin of 32.21%. The firm's revenue for the quarter was up 5.4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.97 EPS. Analysts expect that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be paid a dividend of $1.77 per share. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $7.08 annualized dividend and a dividend yield of 2.3%. McDonald's's dividend payout ratio (DPR) is 60.67%.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on MCD shares. Northcoast Research cut McDonald's from a "buy" rating to a "neutral" rating in a research note on Tuesday, May 6th. Piper Sandler boosted their target price on shares of McDonald's from $314.00 to $325.00 and gave the stock a "neutral" rating in a research report on Thursday. Citigroup lifted their price objective on shares of McDonald's from $364.00 to $365.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Truist Financial increased their target price on shares of McDonald's from $356.00 to $360.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Erste Group Bank downgraded McDonald's from a "strong-buy" rating to a "hold" rating in a research note on Saturday, May 24th. Two equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and thirteen have assigned a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $326.87.

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.