Townsquare Capital LLC Grows Position in McDonald's Corporation (NYSE:MCD)

Key Points

• Townsquare Capital LLC increased its stake in McDonald's Corporation by 6.2%, owning 61,272 shares valued at approximately $19.14 million after purchasing an additional 3,598 shares.
• McDonald's announced a quarterly dividend of $1.77 per share with an annualized yield of 2.3%, reflecting a dividend payout ratio of 60.67%.
• The company's most recent earnings report showed earnings per share of $3.19, beating estimates, and a revenue increase of 5.4% year-over-year, totaling $6.84 billion.

Townsquare Capital LLC lifted its position in McDonald's Corporation (NYSE:MCD - Free Report) by 6.2% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 61,272 shares of the fast-food giant's stock after purchasing an additional 3,598 shares during the period. Townsquare Capital LLC's holdings in McDonald's were worth $19,140,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of MCD. Vanguard Group Inc. grew its stake in 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 valued at $21,993,689,000 after acquiring an additional 239,753 shares in the last quarter. Capital Research Global Investors grew its stake in 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 acquiring an additional 531,070 shares in the last quarter. Northern Trust Corp grew its stake in 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 acquiring an additional 895,896 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in 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 acquiring an additional 504,085 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its stake in 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 acquiring an additional 815,768 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald's Stock Down 0.7%

MCD traded down $2.29 on Friday, reaching $305.62. 2,621,959 shares of the company traded hands, compared to its average volume of 3,681,905. McDonald's Corporation has a one year low of $265.33 and a one year high of $326.32. The firm has a fifty day simple moving average of $298.57 and a two-hundred day simple moving average of $304.49. The company has a market cap of $218.09 billion, a P/E ratio of 26.19, a price-to-earnings-growth ratio of 3.19 and a beta of 0.52.

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

McDonald's Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd will be given a $1.77 dividend. 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 presently 60.67%.

Insider Transactions at McDonald's

In other news, CMO Edith Morgan Flatley sold 1,000 shares of McDonald's stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $300.00, for a total value of $300,000.00. Following the transaction, the chief marketing officer owned 8,858 shares of the company's stock, valued at $2,657,400. The trade was a 10.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 transaction of $281,221.11. Following the completion of the transaction, the insider directly owned 9,283 shares in the company, valued at approximately $2,780,165.67. The trade was a 9.19% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 7,280 shares of company stock valued at $2,215,178 in the last 90 days. Insiders own 0.25% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. BTIG Research reaffirmed a "neutral" rating on shares of McDonald's in a research note on Tuesday, April 22nd. Melius began coverage on shares of McDonald's in a research report on Monday, July 14th. They set a "sell" rating and a $250.00 price objective for the company. Northcoast Research lowered shares of McDonald's from a "buy" rating to a "neutral" rating in a research report on Tuesday, May 6th. Barclays increased their price objective on shares of McDonald's from $355.00 to $360.00 and gave the company an "overweight" rating in a research report on Thursday. Finally, Citigroup increased their price objective on shares of McDonald's from $364.00 to $365.00 and gave the company a "buy" rating in a research report on Wednesday, July 9th. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and thirteen have given a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target 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.