Sowell Financial Services LLC Acquires 4,607 Shares of McDonald's Corporation $MCD

Key Points

• Sowell Financial Services increased its McDonald’s stake by 18.4% in the third quarter, purchasing 4,607 shares and bringing its total holdings to 29,678 shares valued at approximately $6.85 million.
• McDonald’s has a “Moderate Buy” consensus rating with an average price target of $295.64, although several analysts recently reduced their targets amid concerns about weak consumer spending and the company’s performance.
• The company raised its quarterly dividend to $1.93 per share, equal to a $7.72 annualized payout and a roughly 3.0% yield; upcoming promotions, technology investments and earnings results remain key catalysts.

Sowell Financial Services LLC boosted its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 18.4% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 29,678 shares of the fast-food giant's stock after buying an additional 4,607 shares during the period. Sowell Financial Services LLC's holdings in McDonald's were worth $6,854,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in MCD. Sound Income Strategies LLC increased its holdings in McDonald's by 0.6% during the 1st quarter. Sound Income Strategies LLC now owns 5,590 shares of the fast-food giant's stock worth $1,718,000 after purchasing an additional 35 shares in the last quarter. Jacobsen Capital Management raised its holdings in shares of McDonald's by 2.9% in the first quarter. Jacobsen Capital Management now owns 1,267 shares of the fast-food giant's stock valued at $394,000 after purchasing an additional 36 shares during the last quarter. Legacy Wealth Managment LLC ID lifted its position in shares of McDonald's by 11.0% during the first quarter. Legacy Wealth Managment LLC ID now owns 372 shares of the fast-food giant's stock valued at $116,000 after purchasing an additional 37 shares in the last quarter. Millstone Evans Group LLC lifted its position in shares of McDonald's by 2.5% during the first quarter. Millstone Evans Group LLC now owns 1,532 shares of the fast-food giant's stock valued at $476,000 after purchasing an additional 38 shares in the last quarter. Finally, Signature Equity Partners LLC lifted its position in shares of McDonald's by 3.6% during the first quarter. Signature Equity Partners LLC now owns 1,087 shares of the fast-food giant's stock valued at $338,000 after purchasing an additional 38 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

More McDonald's News

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

• Positive Sentiment: Oversold conditions are attracting buyers. Reuters reported that McDonald’s is on track for its weakest annual performance in decades, potentially creating room for a relief rally as investors look for value in a high-quality, cash-generating restaurant company. Mapping the Market: Beaten-down McDonald’s stock may be ripe for a rally
• Positive Sentiment: Seasonal promotions could support customer traffic. McDonald’s is rolling out an $8 Quarter Pounder meal beginning November 2, holiday beverages on November 3 and a Pokémon Happy Meal featuring 15 collectible toys and cards later in November. These limited-time offerings may help stimulate visits and sales during the important holiday period. $8 Quarter Pounder with Cheese meal
• Positive Sentiment: Technology investments may improve efficiency over time. The company’s planned multibillion-dollar overhaul reportedly includes “Archy,” an artificial-intelligence system for drive-thru operations. Successful deployment could improve order accuracy, speed and labor productivity, although execution remains important. McDonald’s AI overhaul
• Neutral Sentiment: Upcoming earnings are the next major catalyst. Analysts expect earnings growth in McDonald’s upcoming report, but a Zacks analysis cautions that the company may not have the strongest setup for an earnings beat. Investors will focus on comparable sales, traffic, pricing and management’s outlook. McDonald’s reports next week
• Negative Sentiment: Consumer weakness and marketing changes remain risks. McDonald’s surprise decision to exit FIFA World Cup sponsorship illustrates efforts to reassess large marketing commitments, while continued pressure on discretionary spending could weigh on traffic and franchisee economics. McDonald’s FIFA sponsorship exit

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Morgan Stanley reduced their price objective on shares of McDonald's from $308.00 to $297.00 and set an "equal weight" rating for the company in a research report on Monday, September 28th. Guggenheim dropped their target price on shares of McDonald's from $290.00 to $250.00 and set a "neutral" rating on the stock in a research report on Monday, October 5th. Loop Capital lowered their target price on McDonald's from $301.00 to $273.00 and set a "hold" rating on the stock in a research note on Wednesday, August 5th. Mizuho cut their price target on shares of McDonald's from $300.00 to $290.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. Finally, Piper Sandler set a $286.00 price target on shares of McDonald's in a research report on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $295.64.

McDonald's Trading Up 2.7%

MCD stock opened at $257.34 on Friday. The company's 50 day moving average is $248.49 and its 200 day moving average is $283.68. The stock has a market cap of $182.10 billion, a price-to-earnings ratio of 19.96, a price-to-earnings-growth ratio of 2.86 and a beta of 0.44. McDonald's Corporation has a 1-year low of $229.20 and a 1-year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its 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 net margin of 31.72% and a negative return on equity of 572.06%. The business had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same period in the previous year, the business posted $3.19 earnings per share. McDonald's's revenue for the quarter was up 3.7% on a year-over-year basis. As a group, sell-side analysts forecast that McDonald's Corporation will post 12.83 EPS for the current fiscal year.

McDonald's Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a dividend of $1.93 per share. This is an increase from McDonald's's previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 annualized dividend and a dividend yield of 3.0%. McDonald's's dividend payout ratio is 60.44%.

McDonald's Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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