Rakuten Investment Management Inc. Purchases 10,996 Shares of McDonald's Corporation $MCD

Key Points

• Rakuten Investment Management increased its McDonald’s stake by 9.5%, buying 10,996 shares in the third quarter to hold 127,200 shares valued at about $29.8 million.
• Investors are watching McDonald’s upcoming quarterly results amid soft U.S. customer traffic, rising costs, and slower sales expectations; new seasonal drinks and a Pokémon promotion could help attract customers.
• McDonald’s raised its quarterly dividend from $1.86 to $1.93 per share, equivalent to $7.72 annually and a 2.9% yield.

Rakuten Investment Management Inc. increased its position in McDonald's Corporation (NYSE:MCD - Free Report) by 9.5% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 127,200 shares of the fast-food giant's stock after purchasing an additional 10,996 shares during the quarter. Rakuten Investment Management Inc.'s holdings in McDonald's were worth $29,762,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the company. State Street Corp lifted its holdings in shares of McDonald's by 1.8% in the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant's stock worth $9,752,921,000 after buying an additional 646,675 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of McDonald's during the second quarter valued at $1,359,276,000. Arrowstreet Capital Limited Partnership increased its stake in shares of McDonald's by 17.2% during the first quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant's stock valued at $1,130,587,000 after buying an additional 533,448 shares during the period. Swiss National Bank raised its holdings in shares of McDonald's by 6.9% in the first quarter. Swiss National Bank now owns 2,089,980 shares of the fast-food giant's stock valued at $649,545,000 after acquiring an additional 134,480 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its holdings in shares of McDonald's by 3.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,909,321 shares of the fast-food giant's stock valued at $593,366,000 after acquiring an additional 62,562 shares in the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting McDonald's

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

• Positive Sentiment: New seasonal drinks and a planned Pokémon promotion could help attract customers and support sales. McDonald’s is also expanding its beverage push. Article: McDonald’s launches 2026 holiday menu with new seasonal drinks
• Neutral Sentiment: McDonald’s is scheduled to report third-quarter results before the market opens on Nov. 4. Analysts expect modest profit growth, but the report and outlook will be closely watched for signs that weaker U.S. traffic and higher expenses are pressuring margins. Article: McDonald’s Stock Rests on Full-Year Earnings Growth
• Negative Sentiment: Pre-earnings coverage points to a tough consumer backdrop and potentially slower sales growth, with soft U.S. customer traffic, rising costs and operational issues weighing on near-term expectations. Article: McDonald's Q3 sales expected to slow amid tough consumer backdrop
• Negative Sentiment: A judge declined to dismiss a proposed class-action lawsuit alleging McDonald’s misled customers about the McRib’s meat. The case proceeding creates legal and reputational risk, though no outcome or financial impact has been determined. Article: McDonald's loses bid to dismiss McRib lawsuit
• Negative Sentiment: U.S. lawmakers questioned the CEO about algorithmic pricing tools, raising the prospect of further scrutiny of the company’s pricing practices. Article: US lawmakers question McDonald’s CEO about algorithmic pricing practices

McDonald's Price Performance

Shares of MCD stock opened at $262.75 on Wednesday. McDonald's Corporation has a 1-year low of $229.20 and a 1-year high of $341.75. The stock's 50-day moving average is $247.96 and its 200 day moving average is $282.99. The company has a market cap of $185.93 billion, a P/E ratio of 21.34, a PEG ratio of 3.03 and a beta of 0.42.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The firm's revenue was up 3.7% on a year-over-year basis. During the same period in the previous year, the company posted $3.19 earnings per share. On average, analysts anticipate that McDonald's Corporation will post 12.83 EPS for the current year.

McDonald's Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a $1.93 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a dividend yield of 2.9%. This is an increase from McDonald's's previous quarterly dividend of $1.86. McDonald's's dividend payout ratio (DPR) is 60.44%.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Guggenheim dropped their target price on shares of McDonald's from $290.00 to $250.00 and set a "neutral" rating on the stock in a report on Monday, October 5th. Bank of America boosted their price target on shares of McDonald's from $339.00 to $343.00 in a report on Wednesday, August 5th. UBS Group reaffirmed a "buy" rating on shares of McDonald's in a research report on Monday, October 19th. JPMorgan Chase & Co. dropped their price objective on shares of McDonald's from $280.00 to $260.00 and set an "overweight" rating on the stock in a research note on Thursday, September 24th. Finally, Citigroup cut their price objective on shares of McDonald's from $305.00 to $295.00 and set a "buy" rating on the stock in a report on Tuesday, October 20th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $292.76.

About McDonald's

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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