Park Avenue Securities LLC Sells 4,470 Shares of McDonald's Corporation $MCD

Key Points

• Park Avenue Securities reduced its McDonald’s stake by 15.4% in the third quarter, selling 4,470 shares and retaining 24,620 shares valued at approximately $5.69 million.
• Institutional investors own 70.29% of McDonald’s, while analyst sentiment remains a “Moderate Buy” with an average price target of $295.64, despite several firms recently lowering their targets.
• McDonald’s raised its quarterly dividend to $1.93 per share, equivalent to $7.72 annually and a 3.1% yield; the company’s latest quarterly earnings also exceeded consensus estimates.

Park Avenue Securities LLC trimmed its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 15.4% in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 24,620 shares of the fast-food giant's stock after selling 4,470 shares during the period. Park Avenue Securities LLC's holdings in McDonald's were worth $5,686,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in MCD. Sound Income Strategies LLC grew its holdings in shares of McDonald's by 0.6% in the first quarter. Sound Income Strategies LLC now owns 5,590 shares of the fast-food giant's stock worth $1,718,000 after acquiring an additional 35 shares during the period. Jacobsen Capital Management increased its position in McDonald's by 2.9% during the first quarter. Jacobsen Capital Management now owns 1,267 shares of the fast-food giant's stock valued at $394,000 after acquiring an additional 36 shares during the last quarter. Legacy Wealth Managment LLC ID increased its position in McDonald's by 11.0% during the first quarter. Legacy Wealth Managment LLC ID now owns 372 shares of the fast-food giant's stock valued at $116,000 after acquiring an additional 37 shares during the last quarter. Millstone Evans Group LLC lifted its holdings in McDonald's by 2.5% in the first quarter. Millstone Evans Group LLC now owns 1,532 shares of the fast-food giant's stock valued at $476,000 after acquiring an additional 38 shares during the period. Finally, Signature Equity Partners LLC lifted its holdings in McDonald's by 3.6% in the first quarter. Signature Equity Partners LLC now owns 1,087 shares of the fast-food giant's stock valued at $338,000 after acquiring an additional 38 shares during the period. Institutional investors own 70.29% of the company's stock.

Key Stories Impacting McDonald's

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

• Positive Sentiment: McDonald’s is rolling out several traffic-driving promotions, including the return of the McRib in six U.S. cities, an $8 meal deal featuring a highly rated burger, and five holiday beverages. These limited-time offerings could support customer visits and seasonal sales. McDonald's McRib Returns October 27 to Select U.S. Cities
• Positive Sentiment: A planned Pokémon Trading Card Game Happy Meal promotion in November and continued menu innovation may strengthen McDonald’s appeal to families and younger customers, although the financial impact is not yet quantified. McDonald’s x Pokémon TCG Collaboration
• Neutral Sentiment: Wall Street expects earnings growth in next week’s report. Investors are likely focused on comparable sales, consumer demand, value offerings and management’s outlook, while current coverage suggests McDonald’s may not have the strongest setup for an earnings beat. McDonald's Reports Next Week
• Neutral Sentiment: McDonald’s attracted elevated investor attention and edged higher alongside other restaurant stocks. However, the move appears more tied to sector positioning and comparisons with peers than to a new company-specific financial announcement. Wendy’s Take-Private Offer and Restaurant Stocks
• Negative Sentiment: Analyst commentary remains cautious, with one assessment arguing that McDonald’s prior decline may not have fully reflected its risks. That view could limit upside until the company demonstrates stronger traffic, sales momentum or guidance. McDonald's 30 Percent Decline Probably Isn't Enough
• Negative Sentiment: McDonald’s decision to end its FIFA World Cup sponsorship indicates a shift in marketing spending and removes a high-profile global promotional platform. While it may reduce costs, investors could question whether the change affects brand visibility. McDonald’s FIFA Sponsorship Exit

Analyst Ratings Changes

Several research analysts have issued reports on the company. Robert W. Baird dropped their target price on McDonald's from $285.00 to $250.00 and set a "neutral" rating on the stock in a research report on Thursday, September 24th. Tigress Financial upped their price target on shares of McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a research report on Friday, July 17th. Melius Research lowered their price objective on shares of McDonald's from $250.00 to $230.00 and set a "sell" rating on the stock in a research note on Monday, September 28th. BMO Capital Markets lowered their price objective on shares of McDonald's from $335.00 to $310.00 and set an "outperform" rating on the stock in a research note on Thursday, September 24th. Finally, Guggenheim dropped their price objective on shares of McDonald's from $290.00 to $250.00 and set a "neutral" rating on the stock in a report on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, McDonald's has an average rating of "Moderate Buy" and an average price target of $295.64.

McDonald's Stock Performance

NYSE MCD opened at $250.54 on Thursday. The company has a market capitalization of $177.30 billion, a PE ratio of 20.35, a price-to-earnings-growth ratio of 2.83 and a beta of 0.44. The business's fifty day moving average is $248.68 and its 200 day moving average is $283.93. McDonald's Corporation has a fifty-two week low of $229.20 and a fifty-two week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%. McDonald's's revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.19 earnings per share. On average, sell-side analysts forecast that McDonald's Corporation will post 12.83 EPS for the current year.

McDonald's Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a dividend of $1.93 per share. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Tuesday, December 1st. This is an increase from McDonald's's previous quarterly dividend of $1.86. McDonald's's payout ratio is presently 60.44%.

McDonald's Company Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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