Ridgewood Investments LLC Buys 4,443 Shares of McDonald's Corporation $MCD

Key Points

• Ridgewood Investments LLC purchased 4,443 McDonald’s shares worth approximately $1.03 million in the third quarter, while institutional investors collectively own 70.29% of the company.
• Analysts maintain a consensus “Moderate Buy” rating with a $298.52 price target, despite several recent target-price cuts; McDonald’s shares traded at $232.70, near their 52-week low.
• McDonald’s reported quarterly earnings of $3.38 per share, exceeding estimates, and raised its quarterly dividend to $1.93, representing a 3.3% annualized yield.

Ridgewood Investments LLC purchased a new stake in McDonald's Corporation (NYSE:MCD - Free Report) in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 4,443 shares of the fast-food giant's stock, valued at approximately $1,026,000.

Other institutional investors have also recently bought and sold shares of the company. Abound Financial LLC purchased a new stake in McDonald's during the fourth quarter valued at about $30,000. Purpose Unlimited Inc. purchased a new position in shares of McDonald's in the fourth quarter worth approximately $31,000. GKV Capital Management Co. Inc. purchased a new position in shares of McDonald's in the first quarter worth approximately $33,000. Merkkuri Wealth Advisors LLC acquired a new stake in shares of McDonald's during the first quarter valued at approximately $43,000. Finally, Burkett Financial Services LLC raised its holdings in shares of McDonald's by 2,312.5% during the third quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant's stock valued at $45,000 after acquiring an additional 185 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently commented on MCD shares. BTIG Research reduced their price target on shares of McDonald's from $350.00 to $295.00 and set a "buy" rating for the company in a research report on Thursday, September 24th. Daiwa Securities Group cut their target price on shares of McDonald's from $309.00 to $293.00 and set an "outperform" rating on the stock in a research note on Thursday, August 6th. Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $295.00 target price (down from $310.00) on shares of McDonald's in a research report on Friday, September 25th. TD Cowen decreased their target price on McDonald's from $282.00 to $270.00 and set a "hold" rating for the company in a research report on Thursday, September 24th. Finally, Rothschild & Co Redburn lowered their price target on McDonald's from $306.00 to $285.00 in a report on Wednesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, McDonald's presently has a consensus rating of "Moderate Buy" and a consensus price target of $298.52.

McDonald's Stock Up 0.4%

Shares of NYSE:MCD traded up $0.81 during trading on Monday, reaching $232.70. 5,593,000 shares of the company traded hands, compared to its average volume of 4,176,792. The firm has a fifty day simple moving average of $259.04 and a 200 day simple moving average of $277.11. The firm has a market cap of $164.67 billion, a P/E ratio of 18.90, a price-to-earnings-growth ratio of 2.59 and a beta of 0.44. McDonald's Corporation has a 1-year low of $229.20 and a 1-year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping 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 business had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same period in the prior year, the business posted $3.19 earnings per share. McDonald's's revenue for the quarter was up 3.7% compared to the same quarter last year. As a group, research analysts anticipate that McDonald's Corporation will post 12.85 EPS for the current year.

McDonald's Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be paid a $1.93 dividend. This represents a $7.72 dividend on an annualized basis and a yield of 3.3%. This is an increase from McDonald's's previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. McDonald's's dividend payout ratio is presently 60.44%.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is pursuing its “McDonald’s NEXT” growth strategy to improve value, regain customer traffic and strengthen digital and restaurant execution. The company has also increased its dividend for the 50th consecutive year, supporting its appeal to income-focused investors. McDonald’s growth strategy article
• Positive Sentiment: The return of the Monopoly promotion, featuring a $1 million prize, and the launch of an exclusive menu item could generate customer interest, visits and limited-term sales momentum. McDonald’s Monopoly promotion McDonald’s exclusive item
• Neutral Sentiment: McDonald’s rejected claims that artificial intelligence is being used to set individualized Big Mac or menu prices. The clarification may limit reputational damage, while the broader AI rollout could still offer operational efficiencies over time. McDonald’s AI pricing response
• Negative Sentiment: Analysts and commentary point to weak traffic, execution challenges and intensifying value competition from quick-service rivals. McDonald’s sharper value efforts may protect market share but could pressure margins if discounts fail to produce enough incremental traffic. McDonald’s value competition analysis
• Negative Sentiment: McDonald’s recently reached a new 52-week low, reflecting investor concerns about the company’s fundamentals and broader weakness in consumer-discretionary stocks as higher borrowing costs weigh on spending and valuations. McDonald’s 52-week low article Consumer discretionary stock performance

McDonald's Profile

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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