Solidarity Wealth LLC Reduces Position in McDonald's Corporation $MCD

Key Points

• Solidarity Wealth LLC cut its McDonald’s position by 87.9% in the second quarter, selling 32,023 shares and retaining 4,411 shares valued at approximately $1.19 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s reported quarterly EPS of $3.38, beating estimates of $3.32, while revenue reached $7.10 billion and increased 3.7% year over year. Shares opened at $266.88, below their 50-day and 200-day moving averages.
• The company declared a quarterly dividend of $1.86 per share, equivalent to $7.44 annually and a 2.8% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $325.44.

Solidarity Wealth LLC trimmed its position in McDonald's Corporation (NYSE:MCD - Free Report) by 87.9% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 4,411 shares of the fast-food giant's stock after selling 32,023 shares during the period. Solidarity Wealth LLC's holdings in McDonald's were worth $1,192,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in shares of McDonald's by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock valued at $22,112,675,000 after purchasing an additional 703,458 shares during the period. State Street Corp raised its stake in shares of 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 worth $10,997,789,000 after purchasing an additional 959,140 shares during 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 purchasing an additional 76,090 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of McDonald's by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant's stock worth $2,895,768,000 after purchasing an additional 277,617 shares during the period. Finally, Norges Bank purchased a new stake in McDonald's in the fourth quarter valued at approximately $2,890,438,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

Insider Buying and Selling at McDonald's

In related news, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction 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 owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction 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 completion of the transaction, the executive vice president directly owned 6,268 shares of the company's stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 8,348 shares of company stock valued at $2,355,634. Company insiders own 0.26% of the company's stock.

McDonald's Trading Down 0.0%

Shares of MCD stock opened at $266.88 on Thursday. The stock has a 50 day moving average of $272.94 and a 200 day moving average of $294.15. The stock has a market cap of $188.86 billion, a P/E ratio of 21.68, a P/E/G ratio of 2.99 and a beta of 0.41. McDonald's Corporation has a twelve month low of $260.96 and a twelve month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping the consensus estimate of $3.32 by $0.06. The business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The business's quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.19 EPS. On average, research analysts predict that McDonald's Corporation will post 12.88 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

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

Wall Street Analyst Weigh In

MCD has been the topic of several research reports. Rothschild & Co Redburn upgraded shares of McDonald's from a "sell" rating to a "neutral" rating and increased their price target for the stock from $260.00 to $306.00 in a report on Thursday, April 23rd. Tigress Financial upped their price objective on shares of McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a report on Friday, July 17th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $295.00 price objective on shares of McDonald's in a research note on Wednesday, August 5th. Cfra upgraded shares of McDonald's to a "buy" rating in a research note on Friday, May 8th. Finally, BTIG Research reissued a "buy" rating and set a $350.00 target price on shares of McDonald's in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $325.44.

More McDonald's News

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

McDonald's Company 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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