Miller Howard Investments Inc. NY Acquires New Shares in McDonald's Corporation $MCD

Key Points

• Miller Howard Investments acquired 195,848 McDonald’s shares in the second quarter, valued at approximately $52.94 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s reported quarterly EPS of $3.38, exceeding the $3.32 consensus estimate, while revenue of $7.10 billion slightly missed expectations. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $325.44.
• The company declared a quarterly dividend of $1.86, equivalent to $7.44 annually and a 2.8% yield. Meanwhile, insiders sold 8,348 shares worth approximately $2.36 million during the latest quarter.

Miller Howard Investments Inc. NY acquired a new position in McDonald's Corporation (NYSE:MCD - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm acquired 195,848 shares of the fast-food giant's stock, valued at approximately $52,940,000.

Other hedge funds have also bought and sold shares of the company. Brighton Jones LLC raised its holdings in shares of McDonald's by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock valued at $2,692,000 after purchasing an additional 1,649 shares during the last quarter. Revolve Wealth Partners LLC boosted its holdings in McDonald's by 2.8% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock worth $563,000 after purchasing an additional 52 shares during the last quarter. Sivia Capital Partners LLC grew its position in McDonald's by 11.4% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant's stock worth $589,000 after purchasing an additional 206 shares during the period. United Bank grew its position in McDonald's by 6.0% in the 2nd quarter. United Bank now owns 8,102 shares of the fast-food giant's stock worth $2,367,000 after purchasing an additional 459 shares during the period. Finally, Schnieders Capital Management LLC. raised its stake in McDonald's by 2.5% during the 2nd quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant's stock valued at $3,780,000 after buying an additional 312 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

McDonald's Stock Performance

MCD opened at $267.15 on Wednesday. The stock has a market cap of $189.04 billion, a price-to-earnings ratio of 21.70, a price-to-earnings-growth ratio of 3.05 and a beta of 0.41. The firm's fifty day moving average is $273.27 and its 200 day moving average is $294.49. McDonald's Corporation has a fifty-two week low of $260.96 and a fifty-two week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.McDonald's's revenue for the quarter was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $3.19 EPS. On average, equities research analysts predict that McDonald's Corporation will post 12.88 earnings per share for the current year.

McDonald's Dividend Announcement

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

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Evercore set a $320.00 price target on McDonald's in a report on Thursday, July 23rd. Tigress Financial upped their price objective on McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a research report on Friday, July 17th. TD Cowen reissued a "hold" rating on shares of McDonald's in a report on Tuesday, August 4th. Wells Fargo & Company dropped their target price on McDonald's from $320.00 to $300.00 and set an "overweight" rating on the stock in a research report on Thursday, July 16th. Finally, Erste Group Bank downgraded McDonald's from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $325.44.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s valuation has become more attractive after its decline, with one bullish estimate implying substantial upside toward the Wall Street consensus target. However, analysts say investors may need to wait for clearer evidence of improved execution. Is McDonald's a Buy Today as Lower Valuation Meets Execution Risk?
• Positive Sentiment: A workforce scheduling and transportation app reportedly helped one McDonald’s franchise avoid missed shifts and save about $35,000 per month. Wider adoption could improve staffing reliability and restaurant-level margins. Missed shifts were costly to this McDonald's. An app has fixed the problem
• Positive Sentiment: Limited-time promotions, including Hello Kitty–Godzilla Happy Meals, new fall beverages and an afternoon-focused menu strategy aimed at Starbucks could support traffic and increase customer occasions. McDonald's Takes Direct Aim at Starbucks
• Neutral Sentiment: McDonald’s latest quarterly earnings beat expectations on EPS, helped by franchised operations, but revenue slightly missed estimates. Investors remain focused on whether cost controls and franchise strength can offset softer U.S. demand. McDonald's Q2 Earnings Beat Puts U.S. Traffic and Margins in Focus
• Negative Sentiment: Numerator data showed sales among low-income customers fell 2.4% in the latest quarter, indicating that prior price increases may be pushing budget-conscious diners toward alternatives. McDonald's is losing ground to rivals like Burger King with a key customer group
• Negative Sentiment: Weak U.S. traffic, value-offer execution problems, rising beef and operating costs, and competition from Burger King are creating pressure on sales and margins. The broader economic concern flagged by restaurant and consumer-goods executives adds to the risk. Burger King is taking a bite out of McDonald's lunch

Insider Activity

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the business's stock in a transaction that occurred on 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 transaction, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 8,348 shares of company stock valued at $2,355,634 in the last quarter. 0.26% of the stock is currently owned by company insiders.

McDonald's Company 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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