Norges Bank Invests $2.89 Billion in McDonald's Corporation $MCD

Key Points

• Norges Bank disclosed a new fourth-quarter position in McDonald’s, buying 9.46 million shares worth about $2.89 billion and ending up with roughly 1.33% of the company.
• McDonald’s recently beat quarterly earnings and revenue expectations, reporting EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion, with sales up 9.4% year over year.
• The company also announced a quarterly dividend of $1.86 per share, payable June 16, while analysts remain broadly positive with a consensus Moderate Buy rating and target price around $334.45.

Norges Bank acquired a new position in shares of McDonald's Corporation (NYSE:MCD - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 9,457,311 shares of the fast-food giant's stock, valued at approximately $2,890,438,000. Norges Bank owned about 1.33% of McDonald's as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently made changes to their positions in the stock. Harbour Investments Inc. raised its position in McDonald's by 84.4% in the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock worth $10,853,000 after purchasing an additional 16,252 shares during the period. North Dakota State Investment Board purchased a new position in shares of McDonald's in the fourth quarter valued at about $7,493,000. Pittenger & Anderson Inc. increased its position in shares of McDonald's by 21.9% in the fourth quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock valued at $6,567,000 after acquiring an additional 3,866 shares during the period. Schroder Investment Management Group increased its position in shares of McDonald's by 5.2% in the third quarter. Schroder Investment Management Group now owns 1,029,572 shares of the fast-food giant's stock valued at $312,877,000 after acquiring an additional 51,039 shares during the period. Finally, National Pension Service increased its position in shares of McDonald's by 2.5% in the third quarter. National Pension Service now owns 1,533,015 shares of the fast-food giant's stock valued at $465,868,000 after acquiring an additional 37,744 shares during the period. 70.29% of the stock is owned by institutional investors.

Insider Activity

In related news, insider Joseph M. Erlinger sold 2,626 shares of the business's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $307.00, for a total transaction of $806,182.00. Following the transaction, the insider owned 8,400 shares in the company, valued at $2,578,800. The trade was a 23.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 5,918 shares of company stock worth $1,862,485 in the last 90 days. 0.26% of the stock is owned by insiders.

McDonald's Price Performance

Shares of NYSE MCD opened at $279.42 on Friday. McDonald's Corporation has a 1 year low of $271.98 and a 1 year high of $341.75. The company's 50-day moving average is $295.34 and its 200 day moving average is $308.57. The stock has a market capitalization of $198.53 billion, a P/E ratio of 23.04, a P/E/G ratio of 2.77 and a beta of 0.43.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly 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 for the quarter, compared to analysts' expectations of $6.47 billion. During the same quarter in the previous year, the company earned $2.67 earnings per share. McDonald's's quarterly revenue was up 9.4% on a year-over-year basis. Research analysts anticipate that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be given a dividend of $1.86 per share. The ex-dividend date is Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. McDonald's's payout ratio is currently 61.34%.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s recent quarterly results beat expectations, with EPS and revenue both topping estimates and sales rising year over year, reinforcing the view that the company’s core business remains resilient.
• Positive Sentiment: Analysts remain generally optimistic, with several firms keeping buy or overweight ratings and a consensus price target above the current trading range, which may help support sentiment.
• Positive Sentiment: The company is teasing new marketing tie-ins such as a 2026 FIFA World Cup Happy Meal featuring Squishmallows, a move that could lift traffic and keep the brand top of mind with families and younger consumers. Article Title
• Positive Sentiment: McDonald’s continues to attract investor interest, with multiple articles noting the stock is widely watched and that analysts are still fairly upbeat about its future prospects. Article Title
• Neutral Sentiment: An insider sale by Joseph Erlinger was disclosed, but the transaction was small relative to his remaining holdings and does not appear to signal a major change in outlook. Article Title
• Neutral Sentiment: Several non-fundamental articles, including brand history and vintage-photo features, may boost visibility but are unlikely to materially affect earnings or valuation.
• Negative Sentiment: One recent article highlighted that McDonald’s has underperformed the broader consumer discretionary group over the past year, which may remind investors that the shares still face valuation and performance challenges. Article Title

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. Evercore set a $350.00 price objective on shares of McDonald's in a research report on Friday, May 8th. Jefferies Financial Group boosted their price objective on shares of McDonald's from $360.00 to $375.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. Guggenheim decreased their price objective on shares of McDonald's from $325.00 to $320.00 and set a "neutral" rating on the stock in a research report on Friday, February 13th. Morgan Stanley set a $331.00 price objective on shares of McDonald's in a research report on Friday, May 8th. Finally, TD Cowen decreased their price objective on shares of McDonald's from $330.00 to $300.00 and set a "hold" rating on the stock in a research report on Thursday, May 7th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, McDonald's currently has a consensus rating of "Moderate Buy" and a consensus target price of $334.45.

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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