New York Life Investment Management LLC Increases Holdings in McDonald's Corporation $MCD

Key Points

• New York Life Investment Management increased its McDonald’s stake by 6.7% in the fourth quarter, bringing its holdings to 103,450 shares valued at about $31.6 million.
• McDonald’s recently beat earnings expectations, reporting $2.83 EPS versus the $2.74 consensus, while revenue of $6.52 billion also came in slightly ahead of estimates and rose 9.4% year over year.
• Despite mixed sentiment and some recent stock weakness, Wall Street still has a Moderate Buy view on McDonald’s, with 17 Buy ratings and an average price target of $334.45.

New York Life Investment Management LLC grew its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 6.7% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 103,450 shares of the fast-food giant's stock after acquiring an additional 6,533 shares during the quarter. New York Life Investment Management LLC's holdings in McDonald's were worth $31,617,000 at the end of the most recent quarter.

Other institutional investors have also recently modified their holdings of the company. Encompass More Asset Management raised its position in shares of McDonald's by 1.5% in the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant's stock worth $648,000 after purchasing an additional 32 shares during the last quarter. Physician Wealth Advisors Inc. grew its position in McDonald's by 1.6% during the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock valued at $642,000 after purchasing an additional 33 shares during the last quarter. Jackson Hole Capital Partners LLC grew its position in McDonald's by 0.3% during the 3rd quarter. Jackson Hole Capital Partners LLC now owns 11,032 shares of the fast-food giant's stock valued at $3,352,000 after purchasing an additional 34 shares during the last quarter. CFO4Life Group LLC increased its stake in McDonald's by 2.1% during the 3rd quarter. CFO4Life Group LLC now owns 1,669 shares of the fast-food giant's stock valued at $507,000 after purchasing an additional 34 shares in the last quarter. Finally, American National Bank of Texas raised its holdings in McDonald's by 2.9% in the fourth quarter. American National Bank of Texas now owns 1,191 shares of the fast-food giant's stock worth $364,000 after buying an additional 34 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Argus upgraded shares of McDonald's from a "hold" rating to a "buy" rating and set a $380.00 target price on the stock in a research note on Friday, February 13th. Rothschild & Co Redburn upgraded shares of McDonald's from a "sell" rating to a "neutral" rating and boosted their price objective for the stock from $260.00 to $306.00 in a report on Thursday, April 23rd. TD Cowen lowered their price objective on McDonald's from $330.00 to $300.00 and set a "hold" rating on the stock in a research report on Thursday, May 7th. Mizuho lifted their target price on McDonald's from $300.00 to $325.00 and gave the stock a "neutral" rating in a report on Friday, February 6th. Finally, Sanford C. Bernstein restated a "market perform" rating and issued a $340.00 price target on shares of McDonald's in a research note on Thursday, February 12th. Seventeen analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $334.45.

McDonald's Stock Down 0.3%

NYSE MCD opened at $274.87 on Friday. The company has a 50-day moving average price of $305.40 and a 200-day moving average price of $310.25. McDonald's Corporation has a 52 week low of $271.98 and a 52 week high of $341.75. The firm has a market capitalization of $195.30 billion, a P/E ratio of 22.66, a PEG ratio of 2.74 and a beta of 0.43.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.74 by $0.09. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The company had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same period in the previous year, the business posted $2.67 earnings per share. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. As a group, equities research analysts anticipate that McDonald's Corporation will post 12.96 EPS for the current year.

Key McDonald's News

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

• Positive Sentiment: McDonald’s announced a landmark $750 million naming rights partnership with Chicago Fire FC for “McDonald’s Park,” a long-term branding move that expands its community presence and reinforces the company’s Chicago roots. McDonald's Expands Brand With $750M Stadium Deal
• Positive Sentiment: Some market commentary says MCD may be oversold after a steep selloff, with analysts still pointing to strong cash flow, industry-leading margins, and upside to consensus price targets. Catching Falling Knives: Is It Time to Buy These Beaten-Down Stocks? (MCD)
• Neutral Sentiment: McDonald’s remains a widely watched stock, with investor attention rising around recent earnings, valuation compression, and whether the company’s recent weakness has created a contrarian buying opportunity. McDonald's Corporation (MCD) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Jim Cramer said McDonald’s looks “tough” technically and is “breaking down,” reflecting concern that the stock’s recent weakness may continue despite its defensive reputation. Jim Cramer on McDonald’s: “QSR I Think Is the Better”
• Negative Sentiment: Another Cramer commentary argued that stocks like McDonald’s, which should benefit in tough economic periods, are instead getting “slaughtered,” underscoring broader investor skepticism toward the name right now. Jim Cramer says stocks like McDonald’s, Walmart that should be soaring in tough times are instead getting ‘slaughtered’
• Negative Sentiment: Several articles highlighted that McDonald’s stock has fallen to 52-week lows and may face additional pressure if higher gas prices continue to squeeze consumer spending and restaurant visits. McDonald's Stock Hits 52-Week Lows: High Gas Prices Could Make Things Worse

Insider Activity

In other McDonald's news, EVP Jonathan Banner sold 6,201 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the sale, the executive vice president owned 2,291 shares in the company, valued at approximately $763,567.39. This trade represents a 73.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Joseph M. Erlinger sold 333 shares of McDonald's stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $302.72, for a total transaction of $100,805.76. Following the transaction, the insider directly owned 8,067 shares in the company, valued at $2,442,042.24. This represents a 3.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 12,119 shares of company stock valued at $3,945,973 in the last three months. 0.26% of the stock is currently owned by corporate 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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