S&CO Inc. Takes Position in McDonald's Corporation $MCD

Key Points

• S&CO Inc. acquired 8,445 McDonald’s shares during the second quarter, valued at approximately $2.28 million. Institutional investors own about 70.29% of the company.
• McDonald’s reported second-quarter EPS of $3.38, beating estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $325.44.
• The company declared a quarterly dividend of $1.86 per share, equivalent to $7.44 annually and a 2.8% yield. Meanwhile, insiders sold 8,348 shares worth approximately $2.36 million over the past three months.

S&CO Inc. acquired a new position in shares of McDonald's Corporation (NYSE:MCD - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 8,445 shares of the fast-food giant's stock, valued at approximately $2,282,000.

Other institutional investors and hedge funds also recently modified their holdings of the company. Vanguard Group Inc. grew its holdings in McDonald's by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock worth $22,112,675,000 after purchasing an additional 703,458 shares during the period. State Street Corp raised its stake in McDonald's by 2.7% in 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 buying an additional 959,140 shares during the period. Geode Capital Management LLC raised its stake in 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 valued at $5,195,965,000 after buying an additional 76,090 shares during the period. Price T Rowe Associates Inc. MD lifted its position 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 valued at $2,895,768,000 after buying an additional 277,617 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of McDonald's in the fourth quarter valued at approximately $2,890,438,000. 70.29% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other news, insider Joseph M. Erlinger sold 5,252 shares of the business's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the sale, the insider owned 7,734 shares of the company's stock, valued at approximately $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 can be accessed through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,348 shares of company stock valued at $2,355,634 in the last three months. 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 second-quarter earnings beat expectations, with EPS of $3.38 versus the $3.32 consensus. Franchise-related strength, international growth, beverage opportunities and a planned U.S. recovery could support a rebound if management improves traffic and execution. McDonald’s Q2 Earnings Beat Puts U.S. Traffic and Margins in Focus
• Positive Sentiment: New and returning menu offerings—including a fall coffee flavor, limited-time meals and the Hello Kitty x Godzilla Happy Meal—could generate customer engagement and incremental visits. A gas-savings promotion may also enhance value perceptions. McDonald’s Has 8 New Hello Kitty x Godzilla Happy Meal Toys

Wall Street Analysts Forecast Growth

MCD has been the subject of several research analyst reports. TD Cowen reiterated a "hold" rating on shares of McDonald's in a research note on Tuesday, August 4th. Evercore set a $320.00 price target on McDonald's in a research note on Thursday, July 23rd. BTIG Research reaffirmed a "buy" rating and set a $350.00 price target on shares of McDonald's in a report on Wednesday, August 5th. Tigress Financial lifted their price objective on shares of McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a research report on Friday, July 17th. Finally, Piper Sandler set a $286.00 price objective on shares of McDonald's in a report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $325.44.

McDonald's Stock Down 0.0%

Shares of MCD stock opened at $266.88 on Thursday. McDonald's Corporation has a 12-month low of $260.96 and a 12-month high of $341.75. The company has a market capitalization of $188.86 billion, a PE ratio of 21.68, a price-to-earnings-growth ratio of 2.99 and a beta of 0.41. The firm has a 50 day moving average price of $272.94 and a two-hundred day moving average price of $294.15.

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 the consensus estimate of $3.32 by $0.06. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The business had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. During the same period in the previous year, the company posted $3.19 EPS. The firm's quarterly revenue was up 3.7% on a year-over-year basis. As a group, research analysts expect that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. McDonald's's dividend payout ratio (DPR) is currently 60.44%.

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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