Milford Funds Ltd. Has $10.06 Million Stock Position in McDonald's Corporation $MCD

Key Points

• Milford Funds cut its McDonald’s stake by 47.6% in the second quarter, selling 33,772 shares and retaining 37,218 shares valued at approximately $10.06 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s reported quarterly EPS of $3.38, topping estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion but fell slightly short of forecasts. The company declared a quarterly dividend of $1.86, equivalent to a 2.8% annualized yield.
• MCD opened at $265.43, well below its 50-day and 200-day moving averages, while analysts maintained a consensus “Moderate Buy” rating with a $325.44 price target. Recent insider activity was also negative, with executives selling more than 8,300 shares over three months.

Milford Funds Ltd. lowered its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 47.6% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 37,218 shares of the fast-food giant's stock after selling 33,772 shares during the quarter. Milford Funds Ltd.'s holdings in McDonald's were worth $10,060,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Your Advocates Ltd. LLP acquired a new position in shares of McDonald's during the fourth quarter worth approximately $27,000. IFC & Insurance Marketing Inc. bought a new position in McDonald's in the 4th quarter worth approximately $29,000. Abound Financial LLC acquired a new position in McDonald's during the 4th quarter worth $30,000. DecisionPoint Financial LLC lifted its holdings in McDonald's by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock worth $31,000 after buying an additional 97 shares in the last quarter. Finally, Entrust Financial LLC bought a new position in McDonald's in the 4th quarter valued at $31,000. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Stock Performance

MCD opened at $265.43 on Tuesday. The firm's fifty day moving average is $273.56 and its two-hundred day moving average is $294.81. The firm has a market cap of $187.83 billion, a PE ratio of 21.56, a price-to-earnings-growth ratio of 3.05 and a beta of 0.41. McDonald's Corporation has a twelve month low of $260.96 and a twelve month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.06. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same quarter in the previous year, the business earned $3.19 EPS. The firm's revenue was up 3.7% on a year-over-year basis. Equities analysts forecast that McDonald's Corporation will post 12.88 EPS for the current fiscal year.

McDonald's Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald's's payout ratio is presently 60.44%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Weiss Ratings cut McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. TD Cowen reiterated a "hold" rating on shares of McDonald's in a report on Tuesday, August 4th. Guggenheim lowered their price objective on McDonald's from $320.00 to $290.00 and set a "neutral" rating for the company in a research report on Wednesday, August 5th. Piper Sandler set a $286.00 target price on shares of McDonald's in a research report on Tuesday, August 4th. Finally, Wells Fargo & Company lowered their price target on shares of McDonald's from $320.00 to $300.00 and set an "overweight" rating for the company in a research report on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, McDonald's has a consensus rating of "Moderate Buy" and a consensus price target of $325.44.

More McDonald's News

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

• Positive Sentiment: McDonald’s is taking direct aim at Starbucks with a menu strategy focused on afternoon traffic. Expanded beverage and snack offerings could help the company capture additional dayparts and improve sales momentum. McDonald's Takes Direct Aim at Starbucks
• Positive Sentiment: New limited-time fall drinks and other menu items, along with the Hello Kitty and Godzilla Happy Meal promotion, could support customer visits and boost seasonal sales. McDonald's Has 4 New Limited-Time Menu Items
• Positive Sentiment: An app that helps restaurants fill open shifts has reportedly reduced the cost of missed shifts at one McDonald’s location. If scalable, better staffing could improve service consistency, labor efficiency, and restaurant-level profitability. Missed shifts were costly to this McDonald's
• Positive Sentiment: A bullish analyst cited a consensus price target substantially above the current trading level, arguing that MCD could offer significant upside after its recent decline. This is supportive sentiment, though targets remain estimates rather than catalysts. McDonald's Keeps Cratering
• Neutral Sentiment: Xbox-related in-game rewards and other international or promotional menu stories increase brand engagement but are unlikely to materially change near-term earnings expectations. Xbox 25th Anniversary McDonald's Rewards
• Neutral Sentiment: One valuation review described MCD as roughly fairly valued on a discounted-cash-flow basis, while market multiples suggested modest undervaluation. The assessment offers some downside support but acknowledges weaker recent U.S. sales growth. McDonald's Stock Looks Fairly Valued
• Negative Sentiment: Commentary on McDonald’s latest earnings characterized the results and execution as underwhelming, reinforcing concerns about soft same-store sales and the effectiveness of recent initiatives. Jim Cramer Breaks Down McDonald's Earnings
• Negative Sentiment: Former Taco Bell executive Greg Creed criticized McDonald’s Red Bull beverage strategy, raising questions about product-market fit and whether the new drinks will meaningfully improve afternoon demand. Taco Bell's Former Boss Criticizes McDonald's Red Bull Drink

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 stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 8,348 shares of company stock valued at $2,355,634. Insiders own 0.26% of the company's stock.

About McDonald's

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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