Slocum Gordon & Co LLP Acquires New Holdings in McDonald's Corporation $MCD

Key Points

• Slocum Gordon & Co LLP purchased 10,673 shares of McDonald's in Q4 (approximately $3.26 million), making MCD the firm's 15th-largest holding and representing 2.4% of its portfolio.
• McDonald's beat Q4 expectations with $3.12 EPS vs. $3.05 expected and $7.01 billion in revenue (+9.7% YoY), and it pays a $1.86 quarterly dividend ($7.44 annualized, ~2.4% yield) while analysts hold a consensus target price of $339.69.
• Insiders sold 71,657 shares worth about $23.7 million last quarter (including sales by the CEO and CMO), leaving corporate insiders with just 0.25% ownership.

Slocum Gordon & Co LLP purchased a new position in McDonald's Corporation (NYSE:MCD - Free Report) during the 4th quarter, according to its most recent disclosure with the SEC. The fund purchased 10,673 shares of the fast-food giant's stock, valued at approximately $3,262,000. McDonald's accounts for 2.4% of Slocum Gordon & Co LLP's holdings, making the stock its 15th largest position.

Other institutional investors also recently added to or reduced their stakes in the company. Evergreen Private Wealth LLC increased its position in McDonald's by 162.5% in the 3rd quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant's stock worth $26,000 after buying an additional 52 shares during the period. Park Place Capital Corp increased its position 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 worth $28,000 after buying an additional 45 shares during the period. Painted Porch Advisors LLC increased its position 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 worth $36,000 after buying an additional 103 shares during the period. Davis Capital Management bought a new position in McDonald's in the 3rd quarter worth approximately $37,000. Finally, Saranac Partners Ltd bought a new position in McDonald's in the 3rd quarter worth approximately $37,000. 70.29% of the stock is owned by institutional investors.

McDonald's Trading Up 1.6%

Shares of NYSE:MCD opened at $311.78 on Friday. McDonald's Corporation has a 1-year low of $283.47 and a 1-year high of $341.75. The firm has a market capitalization of $221.63 billion, a PE ratio of 26.09, a PEG ratio of 2.73 and a beta of 0.53. The business's 50 day moving average is $319.62 and its 200-day moving average is $311.77.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, beating the consensus estimate of $3.05 by $0.07. The business had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.81 billion. McDonald's had a negative return on equity of 343.90% and a net margin of 31.85%.McDonald's's quarterly revenue was up 9.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.83 EPS. On average, sell-side analysts predict that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were paid a $1.86 dividend. The ex-dividend date of this dividend was Tuesday, March 3rd. This represents a $7.44 annualized dividend and a yield of 2.4%. McDonald's's payout ratio is currently 62.26%.

Analysts Set New Price Targets

MCD has been the topic of several recent analyst reports. Erste Group Bank raised McDonald's from a "hold" rating to a "buy" rating in a research report on Wednesday, February 18th. JPMorgan Chase & Co. lifted their price target on McDonald's from $305.00 to $325.00 and gave the stock an "overweight" rating in a research report on Tuesday, February 24th. Piper Sandler lifted their price target on McDonald's from $323.00 to $325.00 and gave the stock a "neutral" rating in a research report on Thursday, February 12th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of McDonald's in a research report on Wednesday, January 28th. Finally, Barclays lifted their price target on McDonald's from $372.00 to $380.00 and gave the stock an "overweight" rating in a research report on Thursday, February 12th. Seventeen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $339.69.

Insider Buying and Selling

In related news, CMO Edith Morgan Flatley sold 4,692 shares of the business's stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $331.00, for a total value of $1,553,052.00. Following the sale, the chief marketing officer owned 6,200 shares of the company's stock, valued at $2,052,200. The trade was a 43.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Christopher J. Kempczinski sold 26,276 shares of the business's stock in a transaction on Friday, February 13th. The shares were sold at an average price of $333.54, for a total value of $8,764,097.04. Following the completion of the sale, the chief executive officer directly owned 22,900 shares in the company, valued at approximately $7,638,066. This represents a 53.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 71,657 shares of company stock worth $23,723,307 in the last quarter. Corporate insiders own 0.25% of the company's stock.

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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