Rational Advisors Inc. Boosts Stock Position in McDonald's Corporation $MCD

Key Points

• Rational Advisors Inc. increased its McDonald’s stake by 208.8% in the fourth quarter, ending with 5,774 shares valued at about $1.77 million.
• Several other institutional investors also added to their positions, and hedge funds and institutions now own 70.29% of McDonald’s stock, showing continued big-investor interest.
• Analysts remain mixed overall: McDonald’s has a consensus “Hold” rating with a price target of $334.45, even though recent reports included both price-target cuts and upgrades.

Rational Advisors Inc. grew its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 208.8% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 5,774 shares of the fast-food giant's stock after acquiring an additional 3,904 shares during the period. Rational Advisors Inc.'s holdings in McDonald's were worth $1,765,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in the stock. Greenwich Wealth Management LLC lifted its position in shares of McDonald's by 21.3% during the fourth quarter. Greenwich Wealth Management LLC now owns 2,817 shares of the fast-food giant's stock worth $861,000 after acquiring an additional 494 shares in the last quarter. Financial Harvest LLC raised its position in shares of McDonald's by 6.4% in the fourth quarter. Financial Harvest LLC now owns 782 shares of the fast-food giant's stock worth $239,000 after buying an additional 47 shares in the last quarter. Dynasty Wealth Management LLC raised its position in shares of McDonald's by 15.8% in the fourth quarter. Dynasty Wealth Management LLC now owns 2,474 shares of the fast-food giant's stock worth $756,000 after buying an additional 337 shares in the last quarter. Natixis Advisors LLC raised its position in shares of McDonald's by 3.9% in the fourth quarter. Natixis Advisors LLC now owns 948,557 shares of the fast-food giant's stock worth $289,908,000 after buying an additional 35,377 shares in the last quarter. Finally, Camden National Bank raised its position in shares of McDonald's by 0.6% in the fourth quarter. Camden National Bank now owns 42,650 shares of the fast-food giant's stock worth $13,035,000 after buying an additional 263 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

Analyst Ratings Changes

MCD has been the topic of a number of recent analyst reports. UBS Group increased their price objective on McDonald's from $350.00 to $365.00 and gave the stock a "buy" rating in a research report on Thursday, February 12th. TD Cowen lowered their price objective on McDonald's from $330.00 to $300.00 and set a "hold" rating on the stock in a research report on Thursday, May 7th. Erste Group Bank downgraded McDonald's from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Argus upgraded McDonald's from a "hold" rating to a "buy" rating and set a $380.00 price objective on the stock in a research report on Friday, February 13th. Finally, Wells Fargo & Company lowered their price objective on McDonald's from $355.00 to $320.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. Sixteen investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $334.45.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s unveiled its new “McDonald’s NEXT” strategy, centered on automation, improved restaurant design, better-tasting food, stronger hospitality, and more effective social media marketing. Investors may view this as a clear roadmap to reignite traffic and long-term sales growth. Article Title
• Positive Sentiment: Multiple articles highlighted that McDonald’s is leaning on value meals, chicken innovation, and restaurant upgrades to gain market share in a cautious consumer environment, which could help sustain demand even if spending stays weak. Article Title
• Positive Sentiment: Jim Cramer also named McDonald’s as a defensive stock to own outside the AI trade, suggesting it could benefit if investors rotate into steadier, out-of-favor sectors. Article Title
• Neutral Sentiment: McDonald’s strategy update also emphasizes making stores easier to run and improving efficiency, which could support margins over time but likely won’t show immediate results. Article Title
• Neutral Sentiment: An EVP recently sold shares, which can add some caution, but the transaction appears routine and is not by itself a strong fundamental warning. Article Title

McDonald's Stock Up 0.2%

MCD opened at $276.61 on Wednesday. The stock has a market cap of $196.53 billion, a PE ratio of 22.80, a P/E/G ratio of 2.75 and a beta of 0.41. McDonald's Corporation has a 52 week low of $271.98 and a 52 week high of $341.75. The business's fifty day simple moving average is $294.66 and its 200 day simple moving average is $308.42.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results 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 analysts' expectations of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The firm's revenue was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.67 earnings per share. As a group, equities analysts anticipate that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Dividend Announcement

The company also recently announced 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. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, June 2nd. McDonald's's dividend payout ratio is currently 61.34%.

Insiders Place Their Bets

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares of the company's stock, valued at $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Joseph M. Erlinger sold 2,626 shares of the stock in a transaction on Friday, April 10th. The shares were sold at an average price of $307.00, for a total value of $806,182.00. Following the completion of 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 8,681 shares of company stock worth $2,631,594. 0.26% of the stock is owned by insiders.

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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