McDonald's Corporation (NYSE:MCD) Shares Sold by Primecap Management Co. CA

Key Points

• Primecap Management Co. CA reduced its holdings in McDonald's Corporation by 15%, selling 6,170 shares to hold a total of 34,930 shares, valued at $10.91 million.
• McDonald's reported a quarterly revenue of $6.84 billion, exceeding analysts' expectations, and earnings per share of $3.19, beating estimates of $3.15.
• The company announced a quarterly dividend of $1.77 per share, which will be paid on September 16th, providing an annualized yield of 2.3%.

Primecap Management Co. CA lessened its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 15.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 34,930 shares of the fast-food giant's stock after selling 6,170 shares during the period. Primecap Management Co. CA's holdings in McDonald's were worth $10,911,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in MCD. Red Door Wealth Management LLC lifted its position in shares of McDonald's by 1.9% in the 1st quarter. Red Door Wealth Management LLC now owns 5,724 shares of the fast-food giant's stock worth $1,788,000 after purchasing an additional 109 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd increased its stake in shares of McDonald's by 5.6% in the 1st quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 345,319 shares of the fast-food giant's stock worth $107,867,000 after acquiring an additional 18,393 shares in the last quarter. Sagespring Wealth Partners LLC increased its stake in shares of McDonald's by 22.9% in the 1st quarter. Sagespring Wealth Partners LLC now owns 17,226 shares of the fast-food giant's stock worth $5,381,000 after acquiring an additional 3,212 shares in the last quarter. Segment Wealth Management LLC increased its stake in McDonald's by 1.7% during the 1st quarter. Segment Wealth Management LLC now owns 54,672 shares of the fast-food giant's stock valued at $17,078,000 after purchasing an additional 937 shares in the last quarter. Finally, Great Waters Wealth Management bought a new stake in McDonald's during the 1st quarter valued at about $864,000. Institutional investors own 70.29% of the company's stock.

McDonald's Stock Performance

McDonald's stock traded down $2.29 during trading on Friday, reaching $305.62. The company had a trading volume of 2,621,959 shares, compared to its average volume of 3,681,905. The firm's 50-day simple moving average is $298.57 and its 200 day simple moving average is $304.49. McDonald's Corporation has a 1-year low of $265.33 and a 1-year high of $326.32. The firm has a market capitalization of $218.09 billion, a PE ratio of 26.19, a price-to-earnings-growth ratio of 3.19 and a beta of 0.52.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, beating analysts' consensus estimates of $3.15 by $0.04. The business had revenue of $6.84 billion during the quarter, compared to analysts' expectations of $6.68 billion. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The company's quarterly revenue was up 5.4% compared to the same quarter last year. During the same period in the prior year, the business earned $2.97 earnings per share. Analysts anticipate that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be issued a $1.77 dividend. This represents a $7.08 annualized dividend and a yield of 2.3%. The ex-dividend date is Tuesday, September 2nd. McDonald's's payout ratio is 60.67%.

Analysts Set New Price Targets

MCD has been the topic of a number of research reports. TD Securities reissued a "hold" rating and issued a $305.00 price objective on shares of McDonald's in a report on Thursday, June 5th. Northcoast Research downgraded shares of McDonald's from a "buy" rating to a "neutral" rating in a report on Tuesday, May 6th. Erste Group Bank downgraded shares of McDonald's from a "strong-buy" rating to a "hold" rating in a report on Saturday, May 24th. Evercore ISI lifted their price target on shares of McDonald's from $350.00 to $360.00 and gave the company an "outperform" rating in a report on Friday. Finally, Morgan Stanley lifted their price target on shares of McDonald's from $324.00 to $326.00 and gave the company an "equal weight" rating in a report on Monday, July 14th. Two investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and thirteen have issued a buy rating to the stock. According to MarketBeat, McDonald's has an average rating of "Hold" and an average target price of $326.87.

Insider Activity at McDonald's

In other McDonald's news, insider Joseph M. Erlinger sold 939 shares of McDonald's stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total value of $281,221.11. Following the completion of the transaction, the insider directly owned 9,283 shares of the company's stock, valued at $2,780,165.67. The trade was a 9.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,487 shares of the business's stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total value of $770,970.00. Following the transaction, the executive vice president directly owned 8,754 shares of the company's stock, valued at approximately $2,713,740. This represents a 22.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 7,280 shares of company stock worth $2,215,178. Company insiders own 0.25% of the company's stock.

McDonald's Company Profile

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.