Plato Investment Management Ltd Makes New Investment in McDonald's Corporation $MCD

Key Points

• Plato Investment Management acquired 18,857 McDonald’s shares in the second quarter, valued at approximately $5.07 million. Institutional investors and hedge funds collectively own 70.29% of the company.
• McDonald’s reported quarterly EPS of $3.38, exceeding analysts’ $3.32 estimate, while revenue rose 3.7% year over year to $7.10 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $325.44.
• The company declared a quarterly dividend of $1.86, equivalent to $7.44 annually and a 2.8% yield. Shares opened at $266.88, near the lower end of their 52-week range of $260.96 to $341.75.

Plato Investment Management Ltd purchased a new position in shares of McDonald's Corporation (NYSE:MCD - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 18,857 shares of the fast-food giant's stock, valued at approximately $5,067,000.

A number of other hedge funds have also made changes to their positions in MCD. Your Advocates Ltd. LLP acquired a new stake in McDonald's in the 4th quarter worth approximately $27,000. IFC & Insurance Marketing Inc. acquired a new position in McDonald's during the fourth quarter valued at approximately $29,000. Abound Financial LLC acquired a new position in McDonald's during the fourth quarter valued at approximately $30,000. DecisionPoint Financial LLC raised its position in shares of McDonald's by 1,616.7% in 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 during the period. Finally, Entrust Financial LLC bought a new position in shares of McDonald's in the fourth quarter valued at approximately $31,000. Institutional investors and hedge funds own 70.29% of the company's stock.

Insider Buying and Selling

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald'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 sale, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the business'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 value of $1,493,248.64. Following the sale, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,348 shares of company stock valued at $2,355,634 in the last quarter. Corporate insiders own 0.26% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently issued reports on MCD. Robert W. Baird decreased their price objective on shares of McDonald's from $305.00 to $285.00 and set a "neutral" rating for the company in a report on Wednesday, August 5th. Citigroup upped their price target on shares of McDonald's from $335.00 to $345.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Cfra raised McDonald's to a "buy" rating in a research report on Friday, May 8th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $295.00 price objective on shares of McDonald's in a research note on Wednesday, August 5th. Finally, Morgan Stanley cut their price objective on McDonald's from $322.00 to $319.00 and set an "equal weight" rating for the company in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat.com, McDonald's has an average rating of "Moderate Buy" and a consensus target price of $325.44.

McDonald's Stock Performance

NYSE:MCD opened at $266.88 on Thursday. The firm's 50-day moving average is $272.94 and its 200-day moving average is $294.15. McDonald's Corporation has a 52-week low of $260.96 and a 52-week high of $341.75. The company has a market cap of $188.86 billion, a price-to-earnings ratio of 21.68, a PEG ratio of 2.99 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.06. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The business had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.13 billion. During the same quarter last year, the company earned $3.19 earnings per share. The firm's revenue was up 3.7% on a year-over-year basis. Equities analysts predict that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be given a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. McDonald's's dividend payout ratio (DPR) is currently 60.44%.

More McDonald's News

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

• Positive Sentiment: McDonald’s second-quarter earnings beat expectations, with EPS of $3.38 versus the $3.32 consensus. Franchise-related strength, international growth, beverage opportunities and a planned U.S. recovery could support a rebound if management improves traffic and execution. McDonald’s Q2 Earnings Beat Puts U.S. Traffic and Margins in Focus
• Positive Sentiment: New and returning menu offerings—including a fall coffee flavor, limited-time meals and the Hello Kitty x Godzilla Happy Meal—could generate customer engagement and incremental visits. A gas-savings promotion may also enhance value perceptions. McDonald’s Has 8 New Hello Kitty x Godzilla Happy Meal Toys

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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