QRG Capital Management Inc. Raises Stake in McDonald's Corporation $MCD

Key Points

• QRG Capital Management Inc. increased its stake in McDonald's Corporation by 6.1%, owning a total of 55,565 shares worth approximately $16.23 million.
• Insider activity saw Joseph M. Erlinger and Jonathan Banner selling shares, with Erlinger selling 939 shares and Banner selling 1,000 shares, representing significant decreases in their ownership.
• McDonald's reported better-than-expected earnings of $3.19 per share for its recent quarter, surpassing forecasts and showing a revenue increase of 5.4% year-over-year.

QRG Capital Management Inc. raised its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 6.1% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 55,565 shares of the fast-food giant's stock after buying an additional 3,205 shares during the quarter. QRG Capital Management Inc.'s holdings in McDonald's were worth $16,234,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of MCD. HFM Investment Advisors LLC bought a new stake in McDonald's in the 1st quarter worth approximately $26,000. Nova Wealth Management Inc. purchased a new position in shares of McDonald's during the first quarter worth approximately $26,000. Abound Financial LLC bought a new stake in shares of McDonald's in the 1st quarter worth approximately $30,000. Redmont Wealth Advisors LLC purchased a new stake in shares of McDonald's in the 1st quarter valued at $31,000. Finally, Financial Gravity Asset Management Inc. bought a new position in shares of McDonald's during the 1st quarter valued at $31,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at McDonald's

In related news, insider Joseph M. Erlinger sold 939 shares of the firm's stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total value of $281,221.11. Following the sale, the insider owned 9,283 shares in the company, valued at approximately $2,780,165.67. This trade represents a 9.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Jonathan Banner sold 1,000 shares of the stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total value of $310,000.00. Following the transaction, the executive vice president directly owned 99 shares in the company, valued at $30,690. The trade was a 90.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 7,402 shares of company stock worth $2,273,407 in the last three months. 0.25% of the stock is currently owned by company insiders.

McDonald's Stock Up 0.3%

Shares of MCD opened at $300.72 on Friday. The stock has a market cap of $214.59 billion, a P/E ratio of 25.77, a P/E/G ratio of 3.07 and a beta of 0.50. The business's 50 day moving average price is $306.93 and its 200-day moving average price is $306.16. McDonald's Corporation has a 52 week low of $276.53 and a 52 week high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share for the quarter, beating analysts' consensus estimates of $3.15 by $0.04. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The business had revenue of $6.84 billion during the quarter, compared to analyst estimates of $6.68 billion. During the same period last year, the business earned $2.97 EPS. McDonald's's revenue was up 5.4% compared to the same quarter last year. On average, equities 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 was paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd were issued a dividend of $1.77 per share. This represents a $7.08 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Tuesday, September 2nd. McDonald's's payout ratio is presently 60.67%.

Wall Street Analyst Weigh In

Several analysts have weighed in on MCD shares. Guggenheim reissued a "neutral" rating on shares of McDonald's in a research note on Friday, August 8th. Evercore ISI boosted their target price on McDonald's from $350.00 to $360.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. The Goldman Sachs Group upgraded McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 price target on the stock in a research report on Thursday, July 10th. JPMorgan Chase & Co. lifted their price target on McDonald's from $305.00 to $310.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Finally, Citigroup increased their price objective on McDonald's from $373.00 to $381.00 and gave the company a "buy" rating in a research note on Wednesday, September 17th. Twelve equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $325.86.

About McDonald's

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.

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