Soltis Investment Advisors LLC Reduces Stock Position in McDonald's Corporation $MCD

Key Points

• Soltis Investment Advisors cut its McDonald’s position by 56.9% in the second quarter, selling 4,110 shares and retaining 3,111 shares valued at approximately $841,000. Hedge funds and institutional investors collectively own 70.29% of the company.
• McDonald’s reported quarterly EPS of $3.38, beating estimates of $3.32, while revenue of $7.10 billion came in slightly below forecasts. Revenue increased 3.7% year over year.
• 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 with an average price target of $325.44, above the reported share price of $266.88.

Soltis Investment Advisors LLC trimmed its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 56.9% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 3,111 shares of the fast-food giant's stock after selling 4,110 shares during the period. Soltis Investment Advisors LLC's holdings in McDonald's were worth $841,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Daymark Wealth Partners LLC grew its position in shares of McDonald's by 3.8% during the second quarter. Daymark Wealth Partners LLC now owns 35,864 shares of the fast-food giant's stock worth $9,694,000 after buying an additional 1,307 shares in the last quarter. Miller Howard Investments Inc. NY acquired a new stake in McDonald's in the second quarter valued at $52,940,000. Integrity Advisory Solutions LLC raised its holdings in McDonald's by 96.8% in the second quarter. Integrity Advisory Solutions LLC now owns 2,383 shares of the fast-food giant's stock valued at $644,000 after acquiring an additional 1,172 shares in the last quarter. Members Trust Co raised its holdings in McDonald's by 1.8% in the second quarter. Members Trust Co now owns 4,736 shares of the fast-food giant's stock valued at $1,280,000 after acquiring an additional 85 shares in the last quarter. Finally, Wealth Quarterback LLC boosted its stake in McDonald's by 3.5% during the 2nd quarter. Wealth Quarterback LLC now owns 3,617 shares of the fast-food giant's stock valued at $978,000 after acquiring an additional 124 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald's Trading Down 0.0%

Shares of NYSE MCD opened at $266.88 on Thursday. The company has a market cap of $188.86 billion, a price-to-earnings ratio of 21.68, a price-to-earnings-growth ratio of 2.99 and a beta of 0.41. McDonald's Corporation has a 12-month low of $260.96 and a 12-month high of $341.75. The stock's 50 day simple moving average is $272.94 and its 200 day simple moving average is $294.15.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 analyst estimates of $7.13 billion. During the same quarter in the previous year, the firm posted $3.19 EPS. The business's revenue for the quarter was up 3.7% compared to the same quarter last year. As a group, equities analysts forecast that McDonald's Corporation will post 12.88 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The company also recently declared 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 annualized dividend and a dividend yield of 2.8%. McDonald's's payout ratio is 60.44%.

Key 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

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on MCD shares. KeyCorp dropped their target price on shares of McDonald's from $315.00 to $305.00 and set an "overweight" rating for the company in a research report on Wednesday, August 5th. Tigress Financial increased their price target 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. Weiss Ratings downgraded McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Evercore set a $320.00 price objective on McDonald's in a report on Thursday, July 23rd. Finally, Rothschild & Co Redburn raised McDonald's from a "sell" rating to a "neutral" rating and increased their target price for the stock from $260.00 to $306.00 in a report on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have assigned a Hold rating to the company's stock. According to data from MarketBeat, McDonald's has a consensus rating of "Moderate Buy" and a consensus target price of $325.44.

Insider Activity

In related news, insider Joseph M. Erlinger sold 5,252 shares of McDonald'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 sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business'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 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 8,348 shares of company stock valued at $2,355,634 in the last 90 days. Insiders own 0.26% of the company's stock.

About McDonald's

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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