Midway Capital Research & Management Makes New $2.31 Million Investment in McDonald's Corporation $MCD

Key Points

• Midway Capital Research & Management opened a new position in McDonald’s during the fourth quarter, buying 7,561 shares worth about $2.31 million. The stake represents roughly 2.3% of the firm’s holdings and is its 18th-largest position.
• Institutional interest in McDonald’s remains strong overall, with multiple large hedge funds and investors increasing their holdings. The article notes that about 70.29% of McDonald’s stock is owned by institutional investors and hedge funds.
• Insiders have recently sold shares, including Joseph M. Erlinger and Desiree Ralls-Morrison, with total insider sales over the past 90 days valued at $3.26 million. Meanwhile, Wall Street sentiment is still constructive, with analysts assigning McDonald’s a consensus rating of “Moderate Buy” and an average price target of $336.26.

Midway Capital Research & Management bought a new stake in McDonald's Corporation (NYSE:MCD - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor bought 7,561 shares of the fast-food giant's stock, valued at approximately $2,311,000. McDonald's comprises about 2.3% of Midway Capital Research & Management's holdings, making the stock its 18th largest position.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in McDonald's during the fourth quarter worth about $2,890,438,000. J. Stern & Co. LLP grew its holdings in shares of McDonald's by 9,867.5% during the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock worth $776,608,000 after buying an additional 2,515,515 shares in the last quarter. Viking Global Investors LP grew its position in shares of McDonald's by 171.7% in the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock valued at $913,157,000 after purchasing an additional 1,974,998 shares in the last quarter. Franklin Resources Inc. increased its position in McDonald's by 36.6% during the third quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant's stock worth $1,336,155,000 after purchasing an additional 1,179,244 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in McDonald's by 111.3% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,071,296 shares of the fast-food giant's stock worth $629,446,000 after acquiring an additional 1,090,849 shares during the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at McDonald's

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the transaction, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president directly owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 11,307 shares of company stock valued at $3,262,622. 0.26% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

MCD has been the subject of a number of research analyst reports. Robert W. Baird set a $305.00 price objective on shares of McDonald's in a research report on Thursday, May 7th. Royal Bank Of Canada lowered their price objective on McDonald's from $330.00 to $305.00 and set a "sector perform" rating for the company in a research report on Friday, May 8th. KeyCorp lowered their target price on shares of McDonald's from $345.00 to $330.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. TD Cowen reiterated a "hold" rating on shares of McDonald's in a research note on Friday, June 12th. Finally, Wells Fargo & Company dropped their price objective on McDonald's from $355.00 to $320.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, McDonald's currently has a consensus rating of "Moderate Buy" and an average price target of $336.26.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s is reviving its original Fried Apple Pie for the first time since 1992, a nostalgia-driven menu move that could boost customer traffic, social buzz, and limited-time sales. McDonald’s (MCD) Brings Back Fried Apple Pie After More Than 30 Years
• Positive Sentiment: Recent analyst coverage highlighted McDonald’s value meals, menu innovation, and brand activations as helping lift same-store sales, with Australia cited as a key area of momentum. McDonald's Blends Value With Brand Activations: Is It Paying Off?
• Positive Sentiment: Seeking Alpha published a rating upgrade arguing McDonald’s “McValue” strategy has finally reached buy territory, reinforcing the case that the company’s value offerings are supporting demand. McDonald's (Mc)Value Finally Reaches Buy Territory (Rating Upgrade)
• Neutral Sentiment: Coverage around McDonald’s AI drive-thru plans suggests the company is still experimenting with automation to improve service and efficiency, but the near-term stock impact is unclear. McDonald’s AI drive-thru may take your next order
• Neutral Sentiment: Several articles about historic landmarks, Happy Meal toys, and food trivia are mostly brand-related publicity and are less likely to materially move the stock on their own.
• Negative Sentiment: Some recent commentary remains cautious, with one article arguing McDonald’s is still delivering but not enough to justify a buy, which may temper enthusiasm for the shares. McDonald's: Still Delivering, But Not Enough For A Buy

McDonald's Stock Performance

Shares of MCD opened at $279.00 on Friday. McDonald's Corporation has a 1 year low of $271.85 and a 1 year high of $341.75. The company's fifty day moving average is $286.98 and its two-hundred day moving average is $305.80. The stock has a market capitalization of $198.23 billion, a P/E ratio of 23.00, a P/E/G ratio of 2.78 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.09. The firm had revenue of $6.52 billion during the quarter, compared to analysts' expectations of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm's revenue for the quarter was up 9.4% on a year-over-year basis. During the same period in the prior year, the company posted $2.67 earnings per share. Sell-side analysts predict that McDonald's Corporation will post 12.93 EPS for the current year.

McDonald's Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were issued a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is currently 61.34%.

McDonald's Profile

McDonald's Corporation NYSE: MCD is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald's serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand's national and international expansion.

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