&PARTNERS Raises Stock Position in McDonald's Corporation $MCD

Key Points

• &PARTNERS increased its McDonald’s stake by 10.5% in the fourth quarter, adding 28,620 shares and bringing its total holdings to 301,098 shares valued at about $92.0 million.
• McDonald’s recently beat quarterly expectations, reporting EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion versus $6.47 billion forecast, with revenue up 9.4% year over year.
• Investor and analyst sentiment remains broadly positive, supported by a 2.6% dividend yield and a “Moderate Buy” consensus from analysts, though recent insider selling and some product/customer complaints may temper enthusiasm.

&PARTNERS boosted its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 10.5% in the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 301,098 shares of the fast-food giant's stock after buying an additional 28,620 shares during the period. &PARTNERS's holdings in McDonald's were worth $92,032,000 as of its most recent SEC filing.

Other institutional investors have also bought and sold shares of the company. Peterson Wealth Services grew its position in shares of McDonald's by 3,294.5% during the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant's stock valued at $3,600,000 after purchasing an additional 11,432 shares in the last quarter. Harbour Investments Inc. grew its position in shares of McDonald's by 84.4% during the fourth quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock valued at $10,853,000 after purchasing an additional 16,252 shares in the last quarter. Capital International Sarl grew its position in shares of McDonald's by 10.4% during the fourth quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant's stock valued at $19,639,000 after purchasing an additional 6,079 shares in the last quarter. North Dakota State Investment Board purchased a new position in shares of McDonald's during the fourth quarter valued at about $7,493,000. Finally, Pittenger & Anderson Inc. lifted its holdings in shares of McDonald's by 21.9% in the 4th quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock valued at $6,567,000 after acquiring an additional 3,866 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is bringing back its fried apple pie for America’s 250th birthday, a nostalgic limited-time item that could help drive traffic and sales while generating a lot of consumer buzz. AP News - McDonald’s is serving fried apple pie again for America’s 250th birthday
• Positive Sentiment: The company is also being highlighted for bringing back other fan-favorite menu items after decades away, reinforcing the view that McDonald’s is using nostalgia-based offerings to support customer engagement. Article - McDonald's Is Bringing Back a Highly Requested Menu Item for the First Time in Over 30 Years
• Positive Sentiment: McDonald’s is testing expanded beverage options, including custom sodas, refreshers and Red Bull-based drinks, which could open a new source of incremental sales and improve ticket size. Yahoo Finance - McDonald's 70-Year Coke Alliance Enters New Beverage Test
• Neutral Sentiment: Several stories focus on McDonald’s brand strength, including celebrity mentions and “coolest locations” lists, which are good for visibility but likely have limited direct impact on earnings. Article - Tina Fey Loves This McDonald’s Menu Item So Much, She Walked Down the Highway in Italy To Order It
• Neutral Sentiment: The company is also making operational changes, including rebuilding a classic Gahanna location with a modern look and altering drive-thru features, but these are more incremental than transformative. AOL - McDonald’s to demolish classic Gahanna location and rebuild it with modern look
• Negative Sentiment: One article about a possible $1 drive-thru fee and another criticizing the chain’s ice cream machine reliability could add to customer frustration and pressure sentiment, even if the financial impact is unclear. Article - Is McDonald’s adding a $1 fee to drive-thru orders? Customers want answers
• Negative Sentiment: Coverage that McCrispy Strips are being revamped after customer criticism suggests McDonald’s is responding to product complaints, which may weigh slightly on sentiment around menu execution. AOL - McDonald’s to Revamp McCrispy Strips After Customer Criticism

McDonald's Price Performance

Shares of NYSE MCD opened at $287.99 on Wednesday. The company has a market cap of $204.62 billion, a P/E ratio of 23.74, a PEG ratio of 2.85 and a beta of 0.41. McDonald's Corporation has a 1 year low of $271.85 and a 1 year high of $341.75. The firm has a 50-day simple moving average of $288.58 and a two-hundred day simple moving average of $306.42.

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 (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.09. The business had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter last year, the firm earned $2.67 earnings per share. As a group, equities research analysts expect that McDonald's Corporation will post 12.93 EPS for the current year.

McDonald's Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were paid a $1.86 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.6%. McDonald's's dividend payout ratio (DPR) is presently 61.34%.

Insider Activity

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares of the company's stock, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction 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 position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 11,307 shares of company stock valued at $3,262,622. 0.26% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on MCD. Rothschild & Co Redburn raised shares of McDonald's from a "sell" rating to a "neutral" rating and increased their price target for the company from $260.00 to $306.00 in a report on Thursday, April 23rd. Cfra raised shares of McDonald's to a "buy" rating in a report on Friday, May 8th. Royal Bank Of Canada lowered their price target on shares of McDonald's from $330.00 to $305.00 and set a "sector perform" rating for the company in a report on Friday, May 8th. Robert W. Baird set a $305.00 price target on shares of McDonald's in a report on Thursday, May 7th. Finally, Tigress Financial increased their price target on shares of McDonald's from $360.00 to $385.00 and gave the company a "buy" rating in a report on Friday, March 6th. Sixteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $336.26.

McDonald's Company 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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