NS Partners Ltd Reduces Stock Position in McDonald's Corporation $MCD

Key Points

• NS Partners Ltd cut its McDonald’s position by 64.9% in the second quarter, selling 76,067 shares and retaining 41,072 shares valued at approximately $11.1 million. Institutional investors collectively own 70.29% of MCD.
• McDonald’s shares were trading near a 52-week low at $264.26, despite quarterly EPS of $3.38 beating estimates; revenue of $7.10 billion rose 3.7% year over year but came in slightly below expectations.
• The company declared a quarterly dividend of $1.86 per share, equivalent to a 2.8% annualized yield, while analysts maintained a Moderate Buy consensus with an average price target of $322.96.

NS Partners Ltd lessened its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 64.9% during the second quarter, according to its most recent disclosure with the SEC. The institutional investor owned 41,072 shares of the fast-food giant's stock after selling 76,067 shares during the period. NS Partners Ltd's holdings in McDonald's were worth $11,102,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of MCD. JNBA Financial Advisors grew its position in McDonald's by 10.6% during the 2nd quarter. JNBA Financial Advisors now owns 5,155 shares of the fast-food giant's stock worth $1,393,000 after acquiring an additional 492 shares during the last quarter. CTC Alternative Strategies Ltd. bought a new position in shares of McDonald's during the second quarter valued at $227,000. BTG Pactual Asset Management US LLC bought a new position in shares of McDonald's during the second quarter valued at $760,000. Rothschild Capital Partners LLC boosted its holdings in McDonald's by 2.7% in the second quarter. Rothschild Capital Partners LLC now owns 2,070 shares of the fast-food giant's stock worth $560,000 after purchasing an additional 54 shares during the last quarter. Finally, Quantitative Investment Management LLC purchased a new stake in shares of McDonald's during the 2nd quarter valued at about $3,310,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s is bringing back its popular Spicy McNuggets on September 1 and introducing limited-time or exclusive meals. The promotions could attract customers and improve traffic, although their financial impact remains uncertain. McDonald’s (MCD) Stock Plunges to 52-Week Low Despite Spicy McNuggets Comeback
• Positive Sentiment: Analysts are described as moderately optimistic despite McDonald’s lagging the S&P 500 over the past year. The company’s franchise-heavy model and recurring cash generation may provide longer-term support, while some traditional valuation measures suggest the shares could be relatively inexpensive. Is McDonald's Stock Underperforming the S&P 500? McDonald's (MCD) Stock Looks Fairly Priced With Limited Valuation Upside
• Neutral Sentiment: McDonald’s and Taco Bell have launched new energy drinks close together, signaling an effort to capture afternoon demand in an increasingly crowded beverage category. The initiative could create incremental sales but also raises competitive and marketing risks. McDonald’s and Taco Bell Are Fighting Over Your 3 P.M. Pick-Me-Up — Here’s Who’s Winning
• Neutral Sentiment: Several articles discuss menu customization, returning fan-favorite items, regional offerings and operational topics such as ice-cream machines and breakfast preparation. These stories may influence customer engagement but provide limited evidence of a material near-term earnings effect. The easy McDonald's ordering trick for a basic hamburger with extra flavor A Fan-Favorite McDonald's Menu Item Is Back
• Negative Sentiment: The most important bearish signal is that MCD recently touched a 52-week low amid declining guest counts. This suggests current promotions are viewed as necessary traffic-recovery measures rather than proof that demand has already stabilized. McDonald’s (MCD) Stock Plunges to 52-Week Low Despite Spicy McNuggets Comeback

McDonald's Stock Down 0.3%

Shares of NYSE MCD opened at $264.26 on Tuesday. The firm has a 50-day simple moving average of $270.55 and a 200-day simple moving average of $291.04. The stock has a market capitalization of $187.00 billion, a price-to-earnings ratio of 21.47, a price-to-earnings-growth ratio of 2.97 and a beta of 0.41. McDonald's Corporation has a 52 week low of $259.85 and a 52 week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same period in the previous year, the firm earned $3.19 earnings per share. McDonald's's quarterly revenue was up 3.7% compared to the same quarter last year. As a group, equities research analysts expect that McDonald's Corporation will post 12.87 EPS for the current year.

McDonald's Dividend Announcement

The company also recently declared 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 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Tuesday, September 1st. McDonald's's dividend payout ratio is 60.44%.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. Morgan Stanley decreased their price target on McDonald's from $322.00 to $319.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 5th. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a research note on Tuesday, August 4th. UBS Group set a $305.00 price target on McDonald's in a research report on Wednesday, August 5th. KeyCorp cut their price target on McDonald's from $315.00 to $305.00 and set an "overweight" rating on the stock in a report on Wednesday, August 5th. Finally, Evercore set a $320.00 price objective on McDonald's in a research report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $322.96.

Insider Activity at McDonald's

In other news, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 0.26% of the stock is currently owned by corporate insiders.

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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