NewEdge Advisors LLC Sells 103,620 Shares of McDonald's Corporation $MCD

Key Points

• NewEdge Advisors cut its McDonald’s stake by 39.5% in the second quarter, selling 103,620 shares and retaining 158,937 shares valued at approximately $43.0 million.
• McDonald’s reported quarterly EPS of $3.38, beating estimates, while revenue rose 3.7% year over year to $7.10 billion. The company also declared a quarterly dividend of $1.86 per share, representing a 2.9% yield.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $321.35, although several firms recently lowered their targets and highlighted a more measured expansion strategy.

NewEdge Advisors LLC cut its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 39.5% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 158,937 shares of the fast-food giant's stock after selling 103,620 shares during the period. NewEdge Advisors LLC's holdings in McDonald's were worth $42,962,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of the company. California State Teachers Retirement System boosted its position in shares of McDonald's by 27,036.7% during the second quarter. California State Teachers Retirement System now owns 302,891,546 shares of the fast-food giant's stock valued at $81,874,614,000 after purchasing an additional 301,775,375 shares in the last quarter. State Street Corp lifted its position in McDonald's by 2.7% during the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant's stock valued at $10,997,789,000 after buying an additional 959,140 shares during the period. Geode Capital Management LLC lifted its position in McDonald's by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock valued at $5,195,965,000 after buying an additional 76,090 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in shares of McDonald's by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant's stock valued at $2,895,768,000 after buying an additional 277,617 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of McDonald's during the 4th quarter valued at $2,890,438,000. 70.29% of the stock is owned by institutional investors.

Key Stories Impacting McDonald's

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.

McDonald's Stock Performance

NYSE:MCD opened at $253.59 on Thursday. The firm has a market cap of $179.45 billion, a P/E ratio of 20.60, a P/E/G ratio of 2.76 and a beta of 0.41. McDonald's Corporation has a fifty-two week low of $253.35 and a fifty-two week high of $341.75. The firm has a 50-day simple moving average of $268.81 and a two-hundred day simple moving average of $287.58.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. The firm had revenue of $7.10 billion for the quarter, compared to analysts' expectations of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The business's revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.19 earnings per share. On average, equities research analysts predict that McDonald's Corporation will post 12.88 EPS for the current 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 dividend of $1.86 per share. This represents a $7.44 annualized dividend and a yield of 2.9%. The ex-dividend date is Tuesday, September 1st. McDonald's's dividend payout ratio (DPR) is currently 60.44%.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on MCD. Guggenheim decreased their price target on shares of McDonald's from $320.00 to $290.00 and set a "neutral" rating for the company in a research note on Wednesday, August 5th. Royal Bank Of Canada dropped their price objective on shares of McDonald's from $305.00 to $295.00 and set a "sector perform" rating on the stock in a research note on Wednesday, August 5th. Freedom Capital upgraded shares of McDonald's from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 5th. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $295.00 target price on shares of McDonald's in a research note on Wednesday, August 5th. Finally, UBS Group set a $305.00 target price on shares of McDonald's in a report 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 stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $321.35.

About McDonald's

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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