Rit Capital Partners PLC Buys Shares of 85,600 McDonald's Corporation $MCD

Key Points

• Rit Capital Partners opened a new position in McDonald's during the fourth quarter, buying 85,600 shares worth about $26.2 million. McDonald's now makes up roughly 5.8% of the fund’s holdings and is its 10th largest position.
• Institutional interest remains strong, with several other hedge funds also adding to or initiating McDonald's stakes, and institutional investors now owning 70.29% of the stock.
• McDonald's also reported solid recent fundamentals: it beat quarterly earnings and revenue estimates, declared a $1.86 per share quarterly dividend, and continues to draw mixed analyst views with a consensus rating of Moderate Buy.

Rit Capital Partners PLC bought a new stake in McDonald's Corporation (NYSE:MCD - Free Report) during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 85,600 shares of the fast-food giant's stock, valued at approximately $26,162,000. McDonald's accounts for approximately 5.8% of Rit Capital Partners PLC's holdings, making the stock its 10th biggest position.

Several other hedge funds have also recently made changes to their positions in the company. North Star Asset Management Inc. raised its stake in shares of McDonald's by 2.9% in the fourth quarter. North Star Asset Management Inc. now owns 6,786 shares of the fast-food giant's stock valued at $2,074,000 after buying an additional 190 shares during the period. Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new stake in shares of McDonald's in the fourth quarter valued at $1,117,000. Life Cycle Investment Partners Ltd bought a new stake in shares of McDonald's in the fourth quarter valued at $40,016,000. Shelter Rock Management LLC bought a new stake in shares of McDonald's in the fourth quarter valued at $504,000. Finally, Pathfinder Wealth Consulting Inc. bought a new stake in shares of McDonald's in the fourth quarter valued at $325,000. 70.29% of the stock is currently owned by institutional investors.

Insider Buying and Selling at McDonald's

In related news, EVP Jonathan Banner sold 6,201 shares of the business's stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the completion of the transaction, the executive vice president directly owned 2,291 shares in the company, valued at $763,567.39. The trade was a 73.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Joseph M. Erlinger sold 2,626 shares of the business's stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $307.00, for a total value of $806,182.00. Following the transaction, the insider owned 8,400 shares of the company's stock, valued at approximately $2,578,800. The trade was a 23.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 12,119 shares of company stock valued at $3,945,973. 0.26% of the stock is owned by company insiders.

More McDonald's News

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

• Positive Sentiment: McDonald's declared a quarterly cash dividend of $1.86 per share, reinforcing its appeal as a dependable income stock and signaling ongoing confidence in cash generation. McDONALD'S ANNOUNCES QUARTERLY CASH DIVIDEND
• Positive Sentiment: Coverage highlighted McDonald's efforts to refresh its menu and customer experience, including new beverage additions, AI-driven drive-thru concepts, and other innovation-focused changes that could support traffic and sales. McDonald’s CEO shares major beverage menu additions
• Neutral Sentiment: McDonald's confirmed plans for a restaurant in historic Castlemaine, a small expansion item that is unlikely to materially move the stock on its own. McDonald's confirms plan for restaurant in historic Castlemaine
• Neutral Sentiment: Analyst commentary suggested McDonald's investment story is shifting as growth and valuation expectations are reset, which reflects changing sentiment rather than a clear operational surprise. Why The McDonald's (MCD) Investment Story Is Shifting As Analysts Reset Growth And Valuation
• Negative Sentiment: Articles about “shrinkflation” and smaller McNuggets could pressure sentiment if consumers view McDonald's as offering less value, potentially weighing on brand perception. Shrinkflation hits McDonald's as customers say McNuggets are half the size they used to be
• Negative Sentiment: Coverage noting that customers are divided on McDonald's specialty drinks suggests product experimentation may not be universally resonating yet. Why McDonald's Customers Are Divided On Its Specialty Drinks

McDonald's Stock Performance

Shares of NYSE MCD opened at $282.48 on Friday. The stock has a market cap of $200.70 billion, a PE ratio of 23.29, a price-to-earnings-growth ratio of 2.81 and a beta of 0.43. McDonald's Corporation has a fifty-two week low of $271.98 and a fifty-two week high of $341.75. The stock has a fifty day moving average of $299.71 and a 200-day moving average of $309.25.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating the consensus estimate of $2.74 by $0.09. The company had revenue of $6.52 billion during 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 quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the previous year, the business earned $2.67 earnings per share. On average, sell-side analysts predict that McDonald's Corporation will post 12.93 EPS for the current year.

McDonald's Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd will be given a $1.86 dividend. The ex-dividend date is Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.6%. McDonald's's payout ratio is 61.34%.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on MCD. JPMorgan Chase & Co. lowered their target price on McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a research note on Monday, May 11th. Citigroup boosted their target price on McDonald's from $371.00 to $375.00 and gave the company a "buy" rating in a research note on Thursday, February 12th. Cfra upgraded McDonald's to a "buy" rating in a research note on Friday, May 8th. KeyCorp lowered their target price on McDonald's from $345.00 to $330.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Finally, Erste Group Bank cut McDonald's from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $334.45.

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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