Pacer Advisors Inc. Cuts Stake in McDonald's Corporation $MCD

Key Points

• Pacer Advisors Inc. reduced its McDonald’s stake by 5.6% in the fourth quarter, selling 7,093 shares and leaving it with 119,798 shares valued at about $36.6 million.
• McDonald’s reported better-than-expected quarterly results, posting EPS of $2.83 versus estimates of $2.74 and revenue of $6.52 billion, with sales up 9.4% year over year.
• The company also paid a quarterly dividend of $1.86, equal to an annualized yield of 2.7%, while several analysts recently trimmed price targets, though the stock still carries a “Moderate Buy” consensus.

Pacer Advisors Inc. lowered its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 5.6% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 119,798 shares of the fast-food giant's stock after selling 7,093 shares during the period. Pacer Advisors Inc.'s holdings in McDonald's were worth $36,614,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of MCD. Your Advocates Ltd. LLP bought a new stake in McDonald's in the 4th quarter valued at $27,000. Park Place Capital Corp boosted its holdings in shares of McDonald's by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after purchasing an additional 45 shares during the last quarter. IFC & Insurance Marketing Inc. bought a new position in shares of McDonald's during the 4th quarter valued at about $29,000. Abound Financial LLC purchased a new position in shares of McDonald's during the fourth quarter valued at about $30,000. Finally, DecisionPoint Financial LLC grew its position in shares of McDonald's by 1,616.7% during the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after purchasing an additional 97 shares in the last quarter. Institutional investors own 70.29% of the company's stock.

McDonald's Trading Up 0.1%

Shares of NYSE MCD opened at $279.00 on Friday. The firm's 50-day moving average price is $286.98 and its 200-day moving average price is $305.80. The stock has a market capitalization of $198.23 billion, a price-to-earnings ratio of 23.00, a P/E/G ratio of 2.78 and a beta of 0.41. McDonald's Corporation has a 12-month low of $271.85 and a 12-month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating analysts' consensus estimates 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 firm had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. During the same quarter last year, the firm earned $2.67 EPS. The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. On average, equities analysts predict that McDonald's Corporation will post 12.93 EPS for the current fiscal year.

McDonald's Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were issued a $1.86 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. McDonald's's payout ratio is 61.34%.

Insider Buying and Selling

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 transaction, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction 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 sale, the insider owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 11,307 shares of company stock valued at $3,262,622. Company insiders own 0.26% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on MCD shares. Erste Group Bank cut McDonald's from a "buy" rating to a "hold" rating in a report on Monday, April 27th. KeyCorp dropped their price target on McDonald's from $345.00 to $330.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Royal Bank Of Canada cut their price target on McDonald's from $330.00 to $305.00 and set a "sector perform" rating for the company in a report on Friday, May 8th. Wells Fargo & Company reduced their price objective on McDonald's from $355.00 to $320.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Finally, TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a report on Friday, June 12th. Sixteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $336.26.

Key McDonald's News

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

• Positive Sentiment: McDonald’s is reviving its original Fried Apple Pie for the first time since 1992, a nostalgia-driven menu move that could boost customer traffic, social buzz, and limited-time sales. McDonald’s (MCD) Brings Back Fried Apple Pie After More Than 30 Years
• Positive Sentiment: Recent analyst coverage highlighted McDonald’s value meals, menu innovation, and brand activations as helping lift same-store sales, with Australia cited as a key area of momentum. McDonald's Blends Value With Brand Activations: Is It Paying Off?
• Positive Sentiment: Seeking Alpha published a rating upgrade arguing McDonald’s “McValue” strategy has finally reached buy territory, reinforcing the case that the company’s value offerings are supporting demand. McDonald's (Mc)Value Finally Reaches Buy Territory (Rating Upgrade)
• Neutral Sentiment: Coverage around McDonald’s AI drive-thru plans suggests the company is still experimenting with automation to improve service and efficiency, but the near-term stock impact is unclear. McDonald’s AI drive-thru may take your next order
• Neutral Sentiment: Several articles about historic landmarks, Happy Meal toys, and food trivia are mostly brand-related publicity and are less likely to materially move the stock on their own.
• Negative Sentiment: Some recent commentary remains cautious, with one article arguing McDonald’s is still delivering but not enough to justify a buy, which may temper enthusiasm for the shares. McDonald's: Still Delivering, But Not Enough For A Buy

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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