Smithbridge Asset Management Inc. DE Purchases New Position in McDonald's Corporation $MCD

Key Points

• Smithbridge Asset Management opened a new position in McDonald’s during the first quarter, buying 4,489 shares valued at about $1.395 million.
• Institutional ownership remains high, with large investors like Norges Bank, Diamant Asset Management, and others making significant additions to their McDonald’s stakes.
• McDonald’s reported better-than-expected quarterly results, with EPS of $2.83 versus estimates of $2.74 and revenue up 9.4% year over year, while also maintaining a quarterly dividend that yields about 2.8%.

Smithbridge Asset Management Inc. DE purchased a new stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm purchased 4,489 shares of the fast-food giant's stock, valued at approximately $1,395,000.

A number of other large investors have also added to or reduced their stakes in the company. Norges Bank purchased a new position in shares of McDonald's in the fourth quarter valued at $2,890,438,000. Diamant Asset Management Inc. raised its stake in McDonald's by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock valued at $806,917,000 after purchasing an additional 2,587,986 shares in the last quarter. J. Stern & Co. LLP lifted its position in McDonald's by 9,867.5% during the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock valued at $776,608,000 after purchasing an additional 2,515,515 shares during the last quarter. Viking Global Investors LP lifted its position in McDonald's by 171.7% during the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock valued at $913,157,000 after purchasing an additional 1,974,998 shares during the last quarter. Finally, Franklin Resources Inc. increased its holdings in shares of McDonald's by 36.6% in the 3rd quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant's stock worth $1,336,155,000 after buying an additional 1,179,244 shares during the last quarter. Institutional investors own 70.29% of the company's stock.

Insider Transactions at McDonald's

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, the executive vice president directly owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This trade represents a 30.59% 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, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares of the company's stock, valued at $2,198,930.88. This represents a 40.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 11,307 shares of company stock valued at $3,262,622 in the last quarter. 0.26% of the stock is currently owned by company insiders.

McDonald's News Roundup

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

• Positive Sentiment: McDonald’s is nearing Dividend King status, and its dividend yield has risen to nearly 2.8%, which may attract income-focused investors looking to accumulate shares at lower levels. This Wannabe Dividend King Had a Tough H1. Expect Some Relief in H2.
• Positive Sentiment: Wall Street brokerage sentiment remains constructive, with the average recommendation on McDonald’s still effectively a Buy, reinforcing the view that analysts see upside from current levels. Brokers Suggest Investing in McDonald's (MCD): Read This Before Placing a Bet
• Positive Sentiment: McDonald’s hired Bryan Brown as U.S. chief development officer, a move that could support domestic expansion and long-term growth. McDonald’s names Bryan Brown U.S. chief development officer
• Positive Sentiment: Articles highlighting McDonald’s stock as potentially having “hit bottom” may be encouraging bargain-hunting after the recent weakness. McDonald's Corp Stock May Have Hit Bottom - Ways to Play MCD Stock
• Neutral Sentiment: Promotions such as discounted Big Macs, FIFA collectibles, and menu nostalgia pieces may help brand engagement, but they are unlikely to move the stock materially on their own.
• Negative Sentiment: One article says McDonald’s remains close to 52-week lows because of margin pressure from franchises and weakening foot traffic, which is the main bearish narrative weighing on the shares. Should You Buy McDonald’s (MCD) At 52-Week Lows
• Negative Sentiment: Customer complaints about hidden upcharges and dissatisfaction with new menu items could add to concerns about pricing backlash and weaker consumer sentiment. McDonald’s customers furious to discover new hidden upcharge on classic menu item: ‘That’s really shady’

Wall Street Analyst Weigh In

Several brokerages have weighed in on MCD. JPMorgan Chase & Co. reduced their price objective 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. Morgan Stanley set a $331.00 price objective on McDonald's in a research note on Friday, May 8th. Erste Group Bank cut McDonald's from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Barclays cut their target price on McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. Finally, KeyCorp decreased their price target on McDonald's from $330.00 to $315.00 and set an "overweight" rating on the stock in a report on Monday. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued 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 $335.70.

McDonald's Price Performance

Shares of NYSE MCD opened at $269.78 on Thursday. The company has a market cap of $191.68 billion, a P/E ratio of 22.24, a PEG ratio of 2.69 and a beta of 0.41. The firm has a 50-day simple moving average of $281.07 and a two-hundred day simple moving average of $303.64. McDonald's Corporation has a 1 year low of $264.53 and a 1 year high of $341.75.

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

McDonald's Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were paid a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is currently 61.34%.

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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