Qsemble Capital Management LP Lowers Stock Holdings in McDonald's Corporation $MCD

Key Points

• Qsemble Capital Management LP cut its McDonald’s stake by 55.2% in the fourth quarter, selling 15,215 shares and ending with 12,336 shares valued at about $3.77 million.
• Other institutional investors remain heavily invested in McDonald’s, and overall institutions and hedge funds own 70.29% of the company’s stock. Several major firms, including Vanguard and State Street, slightly increased their positions.
• Wall Street sentiment is still generally positive: analysts have issued multiple buy or overweight ratings, though some have trimmed price targets. McDonald’s also beat quarterly earnings and revenue expectations, posting $2.83 EPS on $6.52 billion in revenue.

Qsemble Capital Management LP cut its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 55.2% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 12,336 shares of the fast-food giant's stock after selling 15,215 shares during the period. Qsemble Capital Management LP's holdings in McDonald's were worth $3,770,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in McDonald's by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock worth $22,112,675,000 after buying an additional 703,458 shares in the last quarter. State Street Corp grew its stake in shares of McDonald's by 0.6% in the third quarter. State Street Corp now owns 35,024,857 shares of the fast-food giant's stock worth $10,643,704,000 after acquiring an additional 196,505 shares in the last quarter. Legal & General Group Plc increased its position in shares of McDonald's by 6.4% during the third quarter. Legal & General Group Plc now owns 4,757,967 shares of the fast-food giant's stock worth $1,445,899,000 after acquiring an additional 286,284 shares during the period. Ameriprise Financial Inc. raised its stake in shares of McDonald's by 0.5% in the third quarter. Ameriprise Financial Inc. now owns 4,422,014 shares of the fast-food giant's stock valued at $1,343,501,000 after acquiring an additional 21,168 shares in the last quarter. Finally, Franklin Resources Inc. raised its stake in shares of 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 valued at $1,336,155,000 after acquiring an additional 1,179,244 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. Barclays lowered their target price on McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Cfra raised McDonald's to a "buy" rating in a research report on Friday, May 8th. JPMorgan Chase & Co. cut their target price on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a research note on Monday, May 11th. UBS Group raised their target price on shares of McDonald's from $350.00 to $365.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Finally, Tigress Financial lifted their price target on shares of McDonald's from $360.00 to $385.00 and gave the stock a "buy" rating in a research note on Friday, March 6th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, McDonald's currently has an average rating of "Moderate Buy" and an average target price of $334.45.

Insider Activity at McDonald's

In other McDonald's news, EVP Jonathan Banner sold 6,201 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the sale, the executive vice president owned 2,291 shares of the company's stock, valued at approximately $763,567.39. This trade represents a 73.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Joseph M. Erlinger sold 2,626 shares of the business's stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $307.00, for a total transaction of $806,182.00. Following the sale, the insider owned 8,400 shares of the company's stock, valued at $2,578,800. This represents a 23.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,119 shares of company stock worth $3,945,973 over the last quarter. 0.26% of the stock is currently owned by insiders.

Key Stories Impacting McDonald's

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

• Positive Sentiment: Several analysts and market commentators argue that McDonald’s looks oversold and inexpensive relative to its historical valuation, with strong fundamentals and long-term growth prospects potentially supporting a rebound. McDonald's Is the Cheapest It’s Been in Years—Does That Make It a Buy?
• Positive Sentiment: McDonald’s landed a major naming-rights deal for the Chicago Fire stadium, which adds brand visibility and reinforces the company’s deep marketing reach. McDonald's Lands Naming Rights Deal for $750 Million Chicago Fire Stadium
• Neutral Sentiment: McDonald’s remains a widely watched dividend stalwart, with its long record of shareholder payouts keeping it on income investors’ radar. Don’t Look Now, But 4 Blue-Chip Giants Could Be the Newest Dividend Kings
• Neutral Sentiment: News coverage also highlights that McDonald’s is a trending stock and a subject of debate among investors, but this mostly reflects attention rather than a clear new catalyst. McDonald's Corporation (MCD) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Attention is centered on weaker U.S. company-run restaurant margins, with investors worried about pricing pressure, cost inflation, and the ownership mix affecting profitability. McDonald's Company-Run Margins Draw Focus: Can Ownership Mix Help?
• Negative Sentiment: Commentary from Jim Cramer and others points to the stock’s recent weakness, with concerns that McDonald’s has been “breaking down” despite being a defensive name. Jim Cramer on McDonald’s: “QSR I Think Is the Better”
• Negative Sentiment: Broader consumer cost pressures, including rising restaurant prices and higher gas prices, may weigh on traffic and spending at quick-service restaurants like McDonald’s. Grocery and Restaurant Prices Post Biggest Jump Since 2022

McDonald's Stock Performance

NYSE:MCD opened at $276.42 on Friday. The stock has a 50-day simple moving average of $304.30 and a 200-day simple moving average of $310.02. The stock has a market cap of $196.40 billion, a P/E ratio of 22.79, a P/E/G ratio of 2.75 and a beta of 0.43. McDonald's Corporation has a 1 year low of $271.98 and a 1 year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating analysts' consensus estimates of $2.74 by $0.09. The business had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The business's revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.67 EPS. On average, equities research analysts predict that McDonald's Corporation will post 12.94 EPS for the current year.

McDonald's 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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