Prudential PLC Acquires 7,950 Shares of McDonald's Corporation $MCD

Key Points

• Prudential PLC increased its McDonald’s stake by 8.8% in the fourth quarter, adding 7,950 shares and bringing its total holdings to 98,167 shares worth about $30 million.
• McDonald’s posted stronger-than-expected quarterly results, with EPS of $2.83 beating estimates and revenue of $6.52 billion topping forecasts; revenue also rose 9.4% year over year.
• The company reaffirmed shareholder returns and drew mixed analyst views, declaring a $1.86 quarterly dividend and yielding 2.7%, while analysts currently average a “Hold” rating with a $335.50 target price.

Prudential PLC lifted its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 8.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 98,167 shares of the fast-food giant's stock after purchasing an additional 7,950 shares during the quarter. Prudential PLC's holdings in McDonald's were worth $30,003,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the business. Harbour Investments Inc. raised its position in McDonald's by 84.4% during the fourth quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock worth $10,853,000 after acquiring an additional 16,252 shares in the last quarter. Pittenger & Anderson Inc. raised its position in McDonald's by 21.9% during the fourth quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock worth $6,567,000 after acquiring an additional 3,866 shares in the last quarter. North Dakota State Investment Board bought a new stake in McDonald's during the fourth quarter worth $7,493,000. Schroder Investment Management Group raised its position in McDonald's by 5.2% during the third quarter. Schroder Investment Management Group now owns 1,029,572 shares of the fast-food giant's stock worth $312,877,000 after acquiring an additional 51,039 shares in the last quarter. Finally, National Pension Service increased its holdings in shares of McDonald's by 1.6% in the fourth quarter. National Pension Service now owns 1,557,348 shares of the fast-food giant's stock valued at $475,972,000 after purchasing an additional 24,333 shares during the last quarter. Institutional investors own 70.29% of the company's stock.

McDonald's Stock Performance

MCD stock opened at $272.65 on Friday. The company's 50-day simple moving average is $292.61 and its 200 day simple moving average is $307.73. McDonald's Corporation has a 52 week low of $271.85 and a 52 week high of $341.75. The company has a market capitalization of $193.72 billion, a PE ratio of 22.48, a price-to-earnings-growth ratio of 2.72 and a beta of 0.41.

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 business had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the prior year, the company posted $2.67 earnings per share. McDonald's's revenue was up 9.4% compared to the same quarter last year. On average, analysts forecast that McDonald's Corporation will post 12.93 EPS for the current year.

McDonald's Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be paid a $1.86 dividend. The ex-dividend date is Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. McDonald's's dividend payout ratio is 61.34%.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s launched a major global FIFA World Cup campaign featuring collectible cups, Squishmallows, and themed meals, which could boost traffic, engagement, and limited-time sales across key markets. McDonald's launches global FIFA World Cup 2026 campaign with collectible cups, Squishmallows
• Positive Sentiment: The company unveiled its “McDonald’s > NEXT” growth strategy, emphasizing automation and higher hospitality standards, which may improve efficiency and support long-term margins. McDonald’s unveils new ‘McDonald’s > NEXT’ growth strategy
• Positive Sentiment: Analysts and media highlighted McDonald’s as a stock to watch amid Gen Z spending trends, reinforcing the view that the brand remains relevant with younger consumers. Gen Z Trends Make These 3 Stocks Worth Watching (MCD)
• Neutral Sentiment: A McDonald’s executive, Desiree Ralls-Morrison, sold 2,763 shares, but the filing appears routine and does not necessarily signal a change in fundamentals. McDonald's NYSE: MCD EVP Desiree Ralls-Morrison Sells 2,763 Shares
• Neutral Sentiment: Several articles simply reiterated the World Cup promotion details, which may add near-term buzz but are unlikely by themselves to materially change earnings expectations. McDonald's FIFA World Cup 26 meals with collectible cups
• Negative Sentiment: A new customer survey noted only 40% of customers view McDonald’s as a good value, highlighting a potential demand risk if consumers continue to feel pressured by pricing. Only 40% of customers think McDonald's is a good value

Insider Activity

In related news, insider Joseph M. Erlinger sold 2,626 shares of the company's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $307.00, for a total value of $806,182.00. Following the transaction, the insider directly owned 8,400 shares in the company, valued at approximately $2,578,800. This represents a 23.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 8,681 shares of company stock worth $2,631,594 over the last 90 days. 0.26% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

MCD has been the topic of several research reports. BTIG Research reiterated a "buy" rating and issued a $370.00 price objective on shares of McDonald's in a report on Thursday, May 7th. Truist Financial upped their price objective on shares of McDonald's from $356.00 to $370.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Rothschild & Co Redburn upgraded shares of McDonald's from a "sell" rating to a "neutral" rating and upped their price objective for the company from $260.00 to $306.00 in a report on Thursday, April 23rd. Argus upgraded shares of McDonald's from a "hold" rating to a "buy" rating and set a $380.00 price objective on the stock in a report on Friday, February 13th. Finally, Mizuho upped their price objective on shares of McDonald's from $300.00 to $325.00 and gave the company a "neutral" rating in a report on Friday, February 6th. Sixteen investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $335.50.

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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