Oregon Public Employees Retirement Fund Raises Holdings in McDonald's Corporation $MCD

Key Points

• Oregon Public Employees Retirement Fund increased its McDonald’s stake by 7.1% in the second quarter, adding 5,772 shares to own 87,348 shares valued at approximately $23.6 million. Institutional investors collectively own 70.29% of the stock.
• Analysts maintain a generally positive outlook, with McDonald’s holding a “Moderate Buy” consensus rating and a $325.44 average price target, despite several recent target-price cuts. The company’s latest quarterly EPS of $3.38 exceeded expectations, while $7.10 billion in revenue fell slightly short.
• McDonald’s is focusing on value-priced meals, new beverages and limited-time promotions to address competitive pressure and weaker customer traffic. The company declared a quarterly dividend of $1.86, equivalent to a $7.44 annualized payout and a 2.7% yield.

Oregon Public Employees Retirement Fund increased its position in McDonald's Corporation (NYSE:MCD - Free Report) by 7.1% in the 2nd quarter, according to its most recent filing with the SEC. The fund owned 87,348 shares of the fast-food giant's stock after purchasing an additional 5,772 shares during the period. Oregon Public Employees Retirement Fund's holdings in McDonald's were worth $23,611,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the company. Brighton Jones LLC increased its position in McDonald's by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock worth $2,692,000 after buying an additional 1,649 shares during the period. Revolve Wealth Partners LLC boosted its holdings in shares of McDonald's by 2.8% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock valued at $563,000 after acquiring an additional 52 shares during the period. Sivia Capital Partners LLC boosted its holdings in shares of McDonald's by 11.4% in the second quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant's stock valued at $589,000 after acquiring an additional 206 shares during the period. United Bank boosted its holdings in shares of McDonald's by 6.0% in the second quarter. United Bank now owns 8,102 shares of the fast-food giant's stock valued at $2,367,000 after acquiring an additional 459 shares during the period. Finally, Schnieders Capital Management LLC. grew its position in shares of McDonald's by 2.5% during the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant's stock worth $3,780,000 after acquiring an additional 312 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on MCD shares. Royal Bank Of Canada cut their target price on shares of McDonald's from $305.00 to $295.00 and set a "sector perform" rating on the stock in a report on Wednesday, August 5th. Tigress Financial raised their price objective on shares of McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a research report on Friday, July 17th. TD Cowen restated a "hold" rating on shares of McDonald's in a research report on Tuesday, August 4th. Wells Fargo & Company decreased their price target on McDonald's from $320.00 to $300.00 and set an "overweight" rating for the company in a report on Thursday, July 16th. Finally, Barclays lowered their price objective on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $325.44.

Insiders Place Their Bets

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business'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 sale, the executive vice president owned 6,268 shares of the company's stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the transaction, the insider directly owned 7,734 shares of the company's stock, 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 three months, insiders sold 8,348 shares of company stock valued at $2,355,634. 0.26% of the stock is owned by corporate insiders.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers
• Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers
• Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys
• Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call
• Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground
• Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered
• Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report

McDonald's Stock Up 0.1%

Shares of NYSE:MCD opened at $272.61 on Friday. McDonald's Corporation has a 52 week low of $260.96 and a 52 week high of $341.75. The company has a 50-day moving average price of $273.81 and a 200 day moving average price of $295.28. The company has a market cap of $192.91 billion, a P/E ratio of 22.15, a PEG ratio of 3.05 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analysts' expectations of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The firm's quarterly revenue was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.19 EPS. Analysts expect that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be given a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald's's dividend payout ratio is presently 60.44%.

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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