Nicholas Company Inc. Acquires 20,565 Shares of McDonald's Corporation $MCD

Key Points

• Nicholas Company Inc. increased its McDonald’s stake by 11.5% in the fourth quarter, buying 20,565 additional shares to bring its total holdings to 199,475 shares worth about $60.97 million.
• Several other institutional investors also raised their positions, and hedge funds and other institutions now own 70.29% of McDonald’s stock, underscoring strong professional investor interest.
• McDonald’s recently beat Q1 expectations with EPS of $2.83 on $6.52 billion in revenue, while analysts remain broadly positive with a consensus Moderate Buy rating and a $335.14 price target.

Nicholas Company Inc. boosted its position in McDonald's Corporation (NYSE:MCD - Free Report) by 11.5% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 199,475 shares of the fast-food giant's stock after purchasing an additional 20,565 shares during the period. Nicholas Company Inc.'s holdings in McDonald's were worth $60,966,000 as of its most recent SEC filing.

Several other institutional investors have also bought and sold shares of MCD. Viking Global Investors LP lifted its stake in McDonald's by 171.7% in the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock valued at $913,157,000 after purchasing an additional 1,974,998 shares during the last quarter. Franklin Resources Inc. raised its holdings in McDonald's by 36.6% during the 3rd quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant's stock valued at $1,336,155,000 after acquiring an additional 1,179,244 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in McDonald's by 111.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,071,296 shares of the fast-food giant's stock valued at $629,446,000 after acquiring an additional 1,090,849 shares during the period. Marshall Wace LLP raised its holdings in McDonald's by 927.5% during the 3rd quarter. Marshall Wace LLP now owns 827,547 shares of the fast-food giant's stock valued at $251,483,000 after acquiring an additional 927,547 shares during the period. Finally, Alyeska Investment Group L.P. increased its holdings in shares of McDonald's by 766.5% in the third quarter. Alyeska Investment Group L.P. now owns 885,629 shares of the fast-food giant's stock worth $269,134,000 after purchasing an additional 783,416 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Insider Buying and Selling

In other news, EVP Jonathan Banner sold 6,201 shares of the stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $333.29, for a total value of $2,066,731.29. Following the sale, the executive vice president directly owned 2,291 shares of the company's stock, valued at approximately $763,567.39. This represents a 73.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Christopher J. Kempczinski sold 26,276 shares of McDonald's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $333.54, for a total transaction of $8,764,097.04. Following the completion of the transaction, the chief executive officer directly owned 22,900 shares of the company's stock, valued at $7,638,066. This trade represents a 53.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 71,990 shares of company stock valued at $23,824,113. 0.26% of the stock is owned by insiders.

McDonald's News Roundup

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

• Positive Sentiment: McDonald’s beat Q1 earnings and revenue estimates, with EPS of $2.83 and revenue of $6.52 billion, helping reassure investors that the brand is still executing well in a tougher consumer environment. Article Title
• Positive Sentiment: Global comparable sales rose 3.8%, supported by value meals, loyalty spending, and new menu items such as the Big Arch burger and specialty drinks, showing McDonald’s value push is driving traffic and sales growth. Article Title
• Positive Sentiment: Several analysts kept bullish ratings even as they trimmed price targets, reflecting confidence that McDonald’s can keep gaining share and recover if consumer demand stabilizes. Article Title

McDonald's Price Performance

Shares of MCD opened at $275.62 on Monday. McDonald's Corporation has a one year low of $274.83 and a one year high of $341.75. The company has a 50-day simple moving average of $311.40 and a two-hundred day simple moving average of $311.40. The firm has a market capitalization of $195.83 billion, a PE ratio of 22.72, a price-to-earnings-growth ratio of 2.58 and a beta of 0.43.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping 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 business had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same period last year, the business posted $2.67 earnings per share. McDonald's's quarterly revenue was up 9.4% compared to the same quarter last year. Analysts expect that McDonald's Corporation will post 13.04 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. TD Cowen decreased their price target on shares of McDonald's from $330.00 to $300.00 and set a "hold" rating on the stock in a report on Thursday. Jefferies Financial Group upped their price target on shares of McDonald's from $360.00 to $375.00 and gave the stock a "buy" rating in a report on Thursday, February 12th. Tigress Financial upped their price target on shares of McDonald's from $360.00 to $385.00 and gave the stock a "buy" rating in a report on Friday, March 6th. Robert W. Baird set a $305.00 price target on shares of McDonald's in a report on Thursday. Finally, Citigroup increased their target price on McDonald's from $371.00 to $375.00 and gave the company a "buy" rating in a research note on Thursday, February 12th. Seventeen analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, McDonald's has a consensus rating of "Moderate Buy" and a consensus price target of $335.14.

McDonald's 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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