Rice Partnership LLC Cuts Stake in McDonald's Corporation $MCD

Key Points

• Rice Partnership LLC cut its McDonald’s stake by 55.4% in the fourth quarter, selling 11,530 shares and leaving it with 9,266 shares valued at about $2.83 million.
• Brokerage sentiment remains mixed: while some firms lowered price targets, others upgraded the stock, and the overall consensus rating is still “Hold” with an average price target of $334.45.
• McDonald’s reported better-than-expected quarterly results and recently announced a $1.86 quarterly dividend payable June 16, supporting its appeal as a defensive, income-generating stock.

Rice Partnership LLC reduced its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 55.4% during the fourth quarter, according to its most recent filing with the SEC. The fund owned 9,266 shares of the fast-food giant's stock after selling 11,530 shares during the quarter. Rice Partnership LLC's holdings in McDonald's were worth $2,832,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in MCD. Your Advocates Ltd. LLP bought a new stake in McDonald's in the 4th quarter valued at about $27,000. Park Place Capital Corp raised its stake in McDonald's by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after acquiring an additional 45 shares during the period. DecisionPoint Financial LLC raised its stake in McDonald's by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after acquiring an additional 97 shares during the period. Entrust Financial LLC bought a new stake in McDonald's in the 4th quarter valued at about $31,000. Finally, Painted Porch Advisors LLC raised its stake in McDonald's by 735.7% in the 3rd quarter. Painted Porch Advisors LLC now owns 117 shares of the fast-food giant's stock valued at $36,000 after acquiring an additional 103 shares during the period. 70.29% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on MCD. 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 note on Thursday, May 7th. Mizuho boosted their price objective on McDonald's from $300.00 to $325.00 and gave the company a "neutral" rating in a research note on Friday, February 6th. Cfra upgraded McDonald's to a "buy" rating in a research note on Friday, May 8th. Sanford C. Bernstein restated a "market perform" rating and issued a $340.00 price objective on shares of McDonald's in a research note on Thursday, February 12th. Finally, 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 note on Friday, February 13th. Sixteen research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $334.45.

Key Stories Impacting McDonald's

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 Trading Up 0.2%

Shares of NYSE MCD opened at $276.61 on Wednesday. McDonald's Corporation has a 12 month low of $271.98 and a 12 month high of $341.75. The firm has a market capitalization of $196.53 billion, a price-to-earnings ratio of 22.80, a PEG ratio of 2.75 and a beta of 0.41. The business has a 50-day moving average of $294.66 and a 200-day moving average of $308.42.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The company had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the previous year, the firm earned $2.67 earnings per share. McDonald's's revenue was up 9.4% on a year-over-year basis. On average, analysts predict that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd will be issued a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. McDonald's's payout ratio is presently 61.34%.

Insider Activity

In other McDonald's news, insider Joseph M. Erlinger sold 2,626 shares of the company'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 value of $806,182.00. Following the completion of 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction that occurred 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 completion of the sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,681 shares of company stock valued at $2,631,594 in the last three months. 0.26% of the stock is owned by insiders.

About McDonald's

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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