Russell Investments Group Ltd. Buys 43,893 Shares of McDonald's Corporation $MCD

Key Points

• Russell Investments Group Ltd. increased its McDonald’s stake by 9.6% in the fourth quarter, adding 43,893 shares to bring its total holdings to 501,944 shares valued at about $153.7 million.
• McDonald’s recently reported better-than-expected quarterly results, with EPS of $2.83 beating estimates and revenue of $6.52 billion topping forecasts. Revenue rose 9.4% from a year earlier.
• The company also paid a quarterly dividend of $1.86 per share, equal to an annualized yield of 2.6%, while analysts currently rate the stock a Moderate Buy with a consensus target price of $336.26.

Russell Investments Group Ltd. grew its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 9.6% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 501,944 shares of the fast-food giant's stock after acquiring an additional 43,893 shares during the period. Russell Investments Group Ltd. owned 0.07% of McDonald's worth $153,681,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in MCD. Vanguard Group Inc. grew its holdings in McDonald's by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock valued at $22,112,675,000 after buying an additional 703,458 shares in the last quarter. State Street Corp lifted its holdings 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 worth $10,997,789,000 after buying an additional 959,140 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of McDonald's by 0.4% during 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. Norges Bank bought a new stake in shares of McDonald's in the fourth quarter valued at about $2,890,438,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of McDonald's by 7.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant's stock valued at $1,699,314,000 after acquiring an additional 384,762 shares in the last quarter. Institutional investors own 70.29% of the company's stock.

McDonald's Stock Up 0.7%

Shares of McDonald's stock opened at $287.99 on Wednesday. The company has a market capitalization of $204.62 billion, a price-to-earnings ratio of 23.74, a PEG ratio of 2.85 and a beta of 0.41. McDonald's Corporation has a 12-month low of $271.85 and a 12-month high of $341.75. The firm's 50-day moving average price is $288.58 and its two-hundred day moving average price is $306.42.

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

McDonald's Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a yield of 2.6%. The ex-dividend date was Tuesday, June 2nd. McDonald's's payout ratio is currently 61.34%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on MCD. Robert W. Baird set a $305.00 price target on shares of McDonald's in a research report on Thursday, May 7th. Weiss Ratings lowered shares of McDonald's from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, May 29th. Cfra raised shares of McDonald's to a "buy" rating in a report on Friday, May 8th. JPMorgan Chase & Co. dropped their price target on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a research report on Monday, May 11th. Finally, Royal Bank Of Canada cut their price target on McDonald's from $330.00 to $305.00 and set a "sector perform" rating for the company in a research note on Friday, May 8th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $336.26.

Insider Activity at McDonald's

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of the company's stock in a transaction 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 completion of the sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction 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 in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 11,307 shares of company stock valued at $3,262,622. Company insiders own 0.26% of the company's stock.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s is bringing back its fried apple pie for America’s 250th birthday, a nostalgic limited-time item that could help drive traffic and sales while generating a lot of consumer buzz. AP News - McDonald’s is serving fried apple pie again for America’s 250th birthday
• Positive Sentiment: The company is also being highlighted for bringing back other fan-favorite menu items after decades away, reinforcing the view that McDonald’s is using nostalgia-based offerings to support customer engagement. Article - McDonald's Is Bringing Back a Highly Requested Menu Item for the First Time in Over 30 Years
• Positive Sentiment: McDonald’s is testing expanded beverage options, including custom sodas, refreshers and Red Bull-based drinks, which could open a new source of incremental sales and improve ticket size. Yahoo Finance - McDonald's 70-Year Coke Alliance Enters New Beverage Test
• Neutral Sentiment: Several stories focus on McDonald’s brand strength, including celebrity mentions and “coolest locations” lists, which are good for visibility but likely have limited direct impact on earnings. Article - Tina Fey Loves This McDonald’s Menu Item So Much, She Walked Down the Highway in Italy To Order It
• Neutral Sentiment: The company is also making operational changes, including rebuilding a classic Gahanna location with a modern look and altering drive-thru features, but these are more incremental than transformative. AOL - McDonald’s to demolish classic Gahanna location and rebuild it with modern look
• Negative Sentiment: One article about a possible $1 drive-thru fee and another criticizing the chain’s ice cream machine reliability could add to customer frustration and pressure sentiment, even if the financial impact is unclear. Article - Is McDonald’s adding a $1 fee to drive-thru orders? Customers want answers
• Negative Sentiment: Coverage that McCrispy Strips are being revamped after customer criticism suggests McDonald’s is responding to product complaints, which may weigh slightly on sentiment around menu execution. AOL - McDonald’s to Revamp McCrispy Strips After Customer Criticism

McDonald's 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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