North Dallas Bank & Trust Co. Takes $1.09 Million Position in McDonald's Corporation $MCD

Key Points

• North Dallas Bank & Trust Co. disclosed a new position in McDonald's, buying 3,558 shares worth about $1.09 million in the fourth quarter.
• Institutional interest in McDonald's remains strong, with large investors like Norges Bank, Viking Global, and Franklin Resources increasing or initiating stakes; 70.29% of the stock is held by institutions.
• McDonald's continues to show solid operating and shareholder returns, with recent quarterly earnings beating estimates and the company announcing a $1.86 quarterly dividend that implies a 2.6% yield.

North Dallas Bank & Trust Co. acquired a new stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 3,558 shares of the fast-food giant's stock, valued at approximately $1,087,000.

Several other hedge funds and other institutional investors have also recently modified their holdings of MCD. Norges Bank bought a new position in shares of McDonald's during the fourth quarter valued at about $2,890,438,000. Viking Global Investors LP raised its stake in shares of McDonald's by 171.7% during 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 acquiring an additional 1,974,998 shares during the last quarter. Franklin Resources Inc. raised its stake in shares of McDonald's by 36.6% during the third 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 last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of McDonald's by 111.3% during the third 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 last quarter. Finally, Marshall Wace LLP raised its stake in shares of McDonald's by 927.5% during the third 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 last quarter. 70.29% of the stock is owned by institutional investors.

Insider Buying and Selling

In other news, insider Joseph M. Erlinger sold 333 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $280.11, for a total transaction of $93,276.63. Following the sale, the insider owned 7,734 shares in the company, valued at $2,166,370.74. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 6,055 shares of company stock worth $1,769,373. Corporate insiders own 0.26% of the company's stock.

McDonald's Stock Performance

McDonald's stock opened at $282.08 on Wednesday. The stock has a market cap of $200.42 billion, a price-to-earnings ratio of 23.25, a PEG ratio of 2.77 and a beta of 0.41. McDonald's Corporation has a fifty-two week low of $271.85 and a fifty-two week high of $341.75. The stock's 50 day simple moving average is $290.86 and its two-hundred day simple moving average is $307.22.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. The business had revenue of $6.52 billion for the quarter, compared to analysts' expectations of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The business's revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.67 earnings per share. On average, analysts predict that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd will be issued a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Tuesday, June 2nd. McDonald's's dividend payout ratio is 61.34%.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is piloting AI ordering systems at select U.S. drive-thrus, a move that could reduce labor friction and improve throughput if adoption goes well. McDonald’s pilots AI system at select US drive-thru locations
• Positive Sentiment: The company’s FIFA World Cup meal promotions, collectible cups, toys, and other limited-time items could support customer traffic and sales momentum. McDonald’s just announced special World Cup meals only available for a limited time
• Positive Sentiment: Analysts and commentators continue to frame McDonald’s as a resilient long-term holding, citing its franchise model, dividends, and defensive qualities. McDonald’s stock could be bottoming, creating a contrarian bet for long-term investors
• Neutral Sentiment: Several articles focused on McDonald’s new strategic direction and beverage innovation, highlighting possible growth opportunities but without a clear near-term earnings impact. McDonald’s outlines new strategic course
• Negative Sentiment: Fresh workplace-incident reports and culture concerns may create some investor caution around operational oversight and brand reputation. McDonald’s Workplace Incidents Put Culture Risks And Investor Focus In Spotlight

Analyst Ratings Changes

Several equities analysts have recently commented on MCD shares. Guggenheim lowered their price objective on shares of McDonald's from $325.00 to $320.00 and set a "neutral" rating for the company in a research note on Friday, February 13th. Tigress Financial increased their price target on shares of McDonald's from $360.00 to $385.00 and gave the stock a "buy" rating in a research note on Friday, March 6th. Evercore set a $350.00 price objective on shares of McDonald's in a report on Friday, May 8th. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $340.00 price objective on shares of McDonald's in a research report on Thursday, February 12th. Finally, Robert W. Baird set a $305.00 price objective on McDonald's in a research report on Thursday, May 7th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $336.26.

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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