PeakShares LLC Invests $1.10 Million in McDonald's Corporation $MCD

Key Points

• PeakShares LLC initiated a new position in McDonald’s, buying 3,599 shares valued at about $1.1 million in the fourth quarter. The stock now makes up 1.1% of its portfolio.
• McDonald’s reported strong quarterly results, with EPS of $2.83 beating estimates and revenue of $6.52 billion also topping expectations. Revenue rose 9.4% year over year, and analysts still see full-year EPS of 12.93.
• The company continues to offer a solid dividend, paying $1.86 per share in its latest quarterly distribution, or $7.44 annually for a 2.7% yield. Meanwhile, analysts remain generally constructive, with a consensus rating of Moderate Buy and an average price target of $336.26.

PeakShares LLC bought a new stake in McDonald's Corporation (NYSE:MCD - Free Report) in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 3,599 shares of the fast-food giant's stock, valued at approximately $1,100,000. McDonald's comprises 1.1% of PeakShares LLC's holdings, making the stock its 25th largest holding.

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

McDonald's Price Performance

McDonald's stock opened at $279.00 on Friday. The firm has a 50 day simple moving average of $286.98 and a 200-day simple moving average of $305.80. The stock has a market cap of $198.23 billion, a price-to-earnings ratio of 23.00, a price-to-earnings-growth ratio of 2.78 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.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the previous year, the company earned $2.67 EPS. The business's revenue for the quarter was up 9.4% compared to the same quarter last year. Equities analysts expect that McDonald's Corporation will post 12.93 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were paid a dividend of $1.86 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald's's dividend payout ratio (DPR) is 61.34%.

Analyst Ratings Changes

MCD has been the subject of several recent research reports. Morgan Stanley set a $331.00 price target on McDonald's in a report on Friday, May 8th. Wells Fargo & Company lowered 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. Tigress Financial upped their target price on McDonald's from $360.00 to $385.00 and gave the company a "buy" rating in a report on Friday, March 6th. Cfra raised McDonald's to a "buy" rating in a research note on Friday, May 8th. Finally, Evercore set a $350.00 target price on McDonald's in a research note on Friday, May 8th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $336.26.

Key Headlines Impacting McDonald's

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

Insider Buying and Selling at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the company's 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 completion of the transaction, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 11,307 shares of company stock valued at $3,262,622. 0.26% of the stock is owned by 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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