Resona Asset Management Co. Ltd. Lowers Holdings in McDonald's Corporation $MCD

Key Points

• Resona Asset Management cut its McDonald’s stake by 6.3% in the second quarter, selling 16,364 shares and retaining 243,605 shares worth about $65.7 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s reported adjusted quarterly EPS of $3.38, ahead of estimates, while revenue of $7.10 billion slightly missed forecasts. The company is emphasizing value-priced meals and new menu offerings as it faces pressure from lower-cost competitors and inconsistent value-menu execution.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $325.44, compared with a recent share price of $272.61. McDonald’s also declared a quarterly dividend of $1.86 per share, equal to a 2.7% annualized yield.

Resona Asset Management Co. Ltd. trimmed its position in McDonald's Corporation (NYSE:MCD - Free Report) by 6.3% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 243,605 shares of the fast-food giant's stock after selling 16,364 shares during the period. Resona Asset Management Co. Ltd.'s holdings in McDonald's were worth $65,687,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in McDonald's by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock valued at $22,112,675,000 after acquiring an additional 703,458 shares during the last quarter. State Street Corp increased its stake in shares of McDonald's by 2.7% during the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant's stock valued at $10,997,789,000 after purchasing an additional 959,140 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of McDonald's by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock worth $5,195,965,000 after buying an additional 76,090 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of McDonald's by 3.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant's stock worth $2,895,768,000 after acquiring an additional 277,617 shares during the period. Finally, Norges Bank purchased a new position in McDonald's in the fourth quarter worth about $2,890,438,000. Institutional investors own 70.29% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. Tigress Financial raised their target price on shares of McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a research note on Friday, July 17th. Barclays dropped their price target 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. TD Cowen reiterated a "hold" rating on shares of McDonald's in a research report on Tuesday, August 4th. Mizuho dropped their target price on shares of McDonald's from $300.00 to $290.00 and set a "neutral" rating for the company in a research report on Friday, July 31st. Finally, Royal Bank Of Canada reduced their price target on shares of McDonald's from $305.00 to $295.00 and set a "sector perform" rating on the stock in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, McDonald's presently has an average rating of "Moderate Buy" and a consensus target price of $325.44.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers
• Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers
• Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys
• Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call
• Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground
• Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered
• Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report

Insider Activity

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of the business's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares of the company's stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 8,348 shares of company stock worth $2,355,634 over the last 90 days. Corporate insiders own 0.26% of the company's stock.

McDonald's Stock Performance

MCD stock opened at $272.61 on Friday. The firm has a fifty day moving average price of $273.81 and a 200 day moving average price of $295.28. McDonald's Corporation has a fifty-two week low of $260.96 and a fifty-two week high of $341.75. The firm has a market cap of $192.91 billion, a PE ratio of 22.15, a price-to-earnings-growth ratio of 3.05 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same quarter in the prior year, the firm earned $3.19 earnings per share. McDonald's's revenue was up 3.7% on a year-over-year basis. On average, equities analysts predict that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Tuesday, September 1st. McDonald's's dividend payout ratio is currently 60.44%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source