National Pension Service Boosts Stake in McDonald's Corporation $MCD

Key Points

• National Pension Service increased its McDonald’s stake by 2.7% in the second quarter, adding 43,114 shares to own 1.66 million shares valued at approximately $448.3 million. Institutional investors collectively hold 70.29% of the company.
• McDonald’s reported quarterly EPS of $3.38, beating estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion, slightly below expectations.
• The company declared a quarterly dividend of $1.86 per share, equivalent to an annualized $7.44 payout and a 2.9% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $321.35.

National Pension Service grew its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 2.7% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,658,379 shares of the fast-food giant's stock after acquiring an additional 43,114 shares during the period. National Pension Service owned about 0.23% of McDonald's worth $448,276,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Ascentis Wealth Management LLC grew its position in shares of McDonald's by 4,008.8% during the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant's stock worth $22,768,000 after buying an additional 82,180 shares in the last quarter. Borer Denton & Associates Inc. raised its holdings in McDonald's by 16.9% in the second quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant's stock valued at $3,746,000 after acquiring an additional 2,000 shares in the last quarter. Peterson Wealth Services raised its holdings in McDonald's by 3,294.5% in the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant's stock valued at $3,600,000 after acquiring an additional 11,432 shares in the last quarter. HighTower Advisors LLC boosted its stake in McDonald's by 7.1% during the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant's stock valued at $397,822,000 after acquiring an additional 97,060 shares during the last quarter. Finally, Harbour Investments Inc. boosted its stake in McDonald's by 84.4% during the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock valued at $10,853,000 after acquiring an additional 16,252 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald's Price Performance

MCD stock opened at $253.59 on Thursday. McDonald's Corporation has a 1-year low of $253.35 and a 1-year high of $341.75. The firm has a fifty day moving average price of $268.81 and a two-hundred day moving average price of $287.58. The firm has a market cap of $179.45 billion, a price-to-earnings ratio of 20.60, a PEG ratio of 2.76 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted 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. 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 for the quarter, compared to the consensus estimate of $7.13 billion. During the same period last year, the firm posted $3.19 EPS. The company's revenue for the quarter was up 3.7% on a year-over-year basis. As a group, analysts expect that McDonald's Corporation will post 12.88 EPS for the current fiscal year.

McDonald's Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.9%. McDonald's's dividend payout ratio is 60.44%.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s is launching several traffic-driving initiatives, including a one-day $1 cheeseburger promotion, new SpongeBob and One Piece Happy Meal toys, and a first-of-its-kind fall flavor in Canada replacing the company’s traditional pumpkin-spice offering. These campaigns could support customer visits and seasonal sales, although their financial impact is likely limited. McDonald’s Is Offering $1 Cheeseburgers
• Positive Sentiment: Analysts continue to view McDonald’s as a relatively defensive consumer stock amid uncertainty around inflation and Federal Reserve policy. Its franchise-heavy model, global scale and dividend profile may provide support if market volatility increases. Defensive Stocks to Watch
• Neutral Sentiment: McDonald’s is slowing its restaurant expansion pace to protect returns as development costs rise and consumers remain price-sensitive. The strategy may improve the economics of new locations, but it also implies a more measured growth outlook. McDonald’s Slower Expansion Pace
• Negative Sentiment: McDonald’s reportedly faces potentially significant fines related to the use of disposable cups. If confirmed, the penalties could increase costs and add to environmental-compliance risk. McDonald’s Faces Millions in Fines
• Negative Sentiment: Some consumer coverage criticizes new menu items and reduced children’s amenities, potentially highlighting affordability, value and customer-experience concerns. These stories are primarily reputational and are unlikely to materially affect near-term financial results on their own.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on MCD. Morgan Stanley dropped their target price on shares of McDonald's from $322.00 to $319.00 and set an "equal weight" rating for the company in a research report on Wednesday, August 5th. Robert W. Baird raised shares of McDonald's to a "hold" rating in a research report on Monday, August 24th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $295.00 price target on shares of McDonald's in a research note on Wednesday, August 5th. Citigroup boosted their price objective on McDonald's from $335.00 to $345.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Finally, BTIG Research restated a "buy" rating and set a $350.00 price objective on shares of McDonald's in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $321.35.

McDonald's Company Profile

McDonald's Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald's brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald's mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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