NFSG Corp Grows Position in McDonald's Corporation $MCD

Key Points

• NFSG Corp boosted its McDonald's stake by 91.4% in the first quarter, ending with 8,356 shares worth about $2.6 million.
• McDonald's reported better-than-expected Q1 results, with earnings of $2.83 per share and revenue of $6.52 billion, while quarterly revenue rose 9.4% year over year.
• The company recently paid a $1.86 quarterly dividend, equal to an annualized yield of about 2.8%, even as the stock traded lower and analysts kept a Moderate Buy consensus with an average target price of $338.23.

NFSG Corp increased its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 91.4% in the 1st quarter, according to its most recent filing with the SEC. The institutional investor owned 8,356 shares of the fast-food giant's stock after buying an additional 3,990 shares during the quarter. NFSG Corp's holdings in McDonald's were worth $2,597,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also bought and sold shares of MCD. Vanguard Group Inc. grew its stake in shares of McDonald's by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock worth $22,112,675,000 after acquiring an additional 703,458 shares during the period. State Street Corp raised its holdings in shares of 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 purchasing an additional 959,140 shares during the last quarter. 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 purchasing an additional 76,090 shares during the period. Price T Rowe Associates Inc. MD lifted its position in McDonald's by 3.0% during the fourth 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 purchasing an additional 277,617 shares during the period. Finally, Norges Bank purchased a new stake in McDonald's in the fourth quarter worth approximately $2,890,438,000. Institutional investors own 70.29% of the company's stock.

Insider Buying and Selling

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 8,681 shares of company stock worth $2,456,440. 0.26% of the stock is owned by company insiders.

McDonald's Stock Down 1.4%

Shares of MCD opened at $268.90 on Wednesday. The business has a 50-day simple moving average of $277.82 and a two-hundred day simple moving average of $301.17. McDonald's Corporation has a 52 week low of $264.53 and a 52 week high of $341.75. The stock has a market cap of $191.05 billion, a price-to-earnings ratio of 22.17, a PEG ratio of 2.83 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating analysts' consensus estimates of $2.74 by $0.09. The firm had revenue of $6.52 billion for the quarter, compared to analysts' expectations of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The business's quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the firm earned $2.67 EPS. On average, equities analysts anticipate that McDonald's Corporation will post 12.9 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were paid a dividend of $1.86 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. McDonald's's dividend payout ratio (DPR) is presently 61.34%.

Analysts Set New Price Targets

A number of equities research analysts have commented on MCD shares. JPMorgan Chase & Co. cut their target price on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a research report on Monday, May 11th. Deutsche Bank Aktiengesellschaft set a $325.00 price objective on McDonald's in a report on Thursday, July 9th. Sanford C. Bernstein reissued a "market perform" rating on shares of McDonald's in a report on Monday, June 22nd. BTIG Research restated a "buy" rating and set a $370.00 price target on shares of McDonald's in a research note on Thursday, May 7th. Finally, KeyCorp cut their target price on shares of McDonald's from $330.00 to $315.00 and set an "overweight" rating for the company in a research report on Monday, June 29th. Fifteen analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $338.23.

Key Headlines Impacting McDonald's

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

• Neutral Sentiment: Recent market coverage says McDonald’s has been lagging the broader restaurant group and now trades at a discount to peers, with investors weighing whether valuation support, beverage initiatives, and international expansion can offset traffic and margin concerns. McDonald's Stock Lags Industry, Trades at a Discount: Time to Buy?
• Neutral Sentiment: Another update highlighted that MCD slipped even as the overall market rose, reinforcing that the stock’s weakness appears tied more to investor positioning and relative performance than to a single negative headline. McDonald's (MCD) Stock Slides as Market Rises: Facts to Know Before You Trade
• Neutral Sentiment: McDonald’s continues to generate attention with multiple menu and marketing launches, including new limited-time items, a sauce-driven McCrispy update, and BT21 Happy Meal toys, which could help traffic but are not yet enough to lift sentiment decisively. ‘Et tu, McDonald’s?’ Company launching first-ever sauce, chicken snack wrap flavor
• Neutral Sentiment: Analysts and news outlets also point to McDonald’s strong earnings history and resilient brand, but those fundamentals are being balanced against concerns about slowing relative performance, which helps explain the stock’s weaker tone today.

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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