Peterson Wealth Services Acquires 11,432 Shares of McDonald's Corporation $MCD

Key Points

• Peterson Wealth Services dramatically increased its McDonald’s stake in the fourth quarter, buying 11,432 additional shares and lifting its holdings to 11,779 shares worth about $3.6 million.
• McDonald’s reported better-than-expected Q1 earnings of $2.83 per share on revenue of $6.52 billion, with sales up 9.4% year over year. Analysts still expect the company to earn 12.93 EPS for the current fiscal year.
• The company recently declared a quarterly dividend of $1.86 per share, or $7.44 annualized, for a yield of about 2.6%. Meanwhile, Wall Street remains broadly constructive with a Moderate Buy consensus and an average price target of $336.26.

Peterson Wealth Services increased its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 3,294.5% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 11,779 shares of the fast-food giant's stock after purchasing an additional 11,432 shares during the quarter. McDonald's makes up approximately 0.9% of Peterson Wealth Services' holdings, making the stock its 29th largest holding. Peterson Wealth Services' holdings in McDonald's were worth $3,600,000 at the end of the most recent quarter.

Several other large investors also recently modified their holdings of MCD. Norges Bank bought a new stake in shares of McDonald's in the fourth quarter worth about $2,890,438,000. Viking Global Investors LP lifted its holdings in McDonald's by 171.7% in the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock worth $913,157,000 after buying an additional 1,974,998 shares during the period. Franklin Resources Inc. lifted its holdings in McDonald's by 36.6% in the third quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant's stock worth $1,336,155,000 after buying an additional 1,179,244 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in McDonald's by 111.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 2,071,296 shares of the fast-food giant's stock worth $629,446,000 after buying an additional 1,090,849 shares during the period. Finally, Marshall Wace LLP lifted its holdings in McDonald's by 927.5% in the third quarter. Marshall Wace LLP now owns 827,547 shares of the fast-food giant's stock worth $251,483,000 after buying an additional 927,547 shares during the period. 70.29% of the stock is owned by institutional investors.

McDonald's Stock Performance

MCD stock opened at $285.02 on Friday. The firm has a 50 day moving average price of $289.83 and a 200-day moving average price of $306.90. McDonald's Corporation has a 52-week low of $271.85 and a 52-week high of $341.75. The firm has a market capitalization of $202.51 billion, a price-to-earnings ratio of 23.50, a PEG ratio of 2.81 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (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 during the quarter, compared to analyst estimates of $6.47 billion. During the same period last year, the business earned $2.67 earnings per share. The business's revenue was up 9.4% on a year-over-year basis. As a group, sell-side analysts forecast that McDonald's Corporation will post 12.93 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be given a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.6%. McDonald's's dividend payout ratio (DPR) is 61.34%.

Wall Street Analyst Weigh In

MCD has been the subject of several research analyst reports. Sanford C. Bernstein restated a "market perform" rating and issued a $340.00 price objective on shares of McDonald's in a report on Thursday, February 12th. Guggenheim lowered their price objective on shares of McDonald's from $325.00 to $320.00 and set a "neutral" rating for the company in a report on Friday, February 13th. TD Cowen lowered their price objective on shares of McDonald's from $330.00 to $300.00 and set a "hold" rating for the company in a report on Thursday, May 7th. Robert W. Baird set a $305.00 price objective on shares of McDonald's in a report on Thursday, May 7th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a report on Monday, May 11th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $336.26.

Key Stories Impacting McDonald's

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

• Positive Sentiment: McDonald’s new FIFA World Cup meal promotions, collectible cups, and Squishmallows tie-ins could lift traffic and drive incremental sales through limited-time demand. McDonald's FIFA World Cup meals with Squishmallows and 9 collectible cups are here
• Positive Sentiment: McDonald’s is testing AI-powered drive-thru systems, which could improve service speed, reduce labor pressure, and support margins if the rollout works well. McDonald’s testing AI drive-thru system at select US locations
• Positive Sentiment: Analyst sentiment remains constructive, with coverage pointing to a “Moderate Buy” consensus on MCD. McDonald's Corporation NYSE: MCD Given Consensus Rating of "Moderate Buy" by Analysts
• Neutral Sentiment: McDonald’s is receiving additional attention from commentary framing it as a long-term buy-on-weakness name, but this is more sentiment than a fresh fundamental catalyst. Jim Cramer Discusses a Strategic Buying Plan to Build a Great Cost Basis in McDonald’s
• Negative Sentiment: An insider sale by executive Joseph M. Erlinger may weigh on sentiment, even though insider sales do not always indicate a weaker outlook. Joseph M. Erlinger insider sale
• Negative Sentiment: Recent analysis highlighted that MCD shares have fallen over the past few months amid cost pressures, weaker low-income demand, and slower sales growth, which remains a key overhang for the stock. McDonald's Stock Slides 13% in 3 Months: Buy the Dip or Stay Away?
• Negative Sentiment: There is also some concern around customer frustration with drive-thru changes and workplace safety scrutiny, which could hurt brand perception if the issues persist. McDonald's quietly makes a major change to its drive thru and customers are furious

Insider Activity at McDonald's

In related news, 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 transaction of $1,493,248.64. Following the completion of the sale, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at $1,744,760.48. This trade represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 11,307 shares of company stock valued at $3,262,622 in the last three months. 0.26% of the stock is owned by insiders.

About McDonald's

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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