State of Michigan Retirement System Has $49.17 Million Holdings in McDonald's Corporation $MCD

Key Points

• State of Michigan Retirement System reduced its McDonald’s position by 2.2% in the second quarter, selling 4,100 shares and retaining 181,915 shares valued at approximately $49.17 million. Institutional investors and hedge funds own 70.29% of the company.
• McDonald’s reported quarterly EPS of $3.38, exceeding estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion but fell slightly short of expectations. The stock opened at $265.43, near its one-year low, and analysts maintain a “Moderate Buy” consensus with an average price target of $325.44.
• The company declared a quarterly dividend of $1.86 per share, equivalent to an annualized $7.44 payout and a 2.8% yield. Recent insiders sold a combined 8,348 shares worth about $2.36 million.

State of Michigan Retirement System decreased its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 2.2% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 181,915 shares of the fast-food giant's stock after selling 4,100 shares during the quarter. State of Michigan Retirement System's holdings in McDonald's were worth $49,173,000 at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of the company. Hamilton Point Investment Advisors LLC raised its position in shares of McDonald's by 1.8% in the 4th quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant's stock valued at $535,000 after buying an additional 31 shares in the last quarter. Encompass More Asset Management boosted its position in shares of McDonald's by 1.5% during the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant's stock worth $648,000 after acquiring an additional 32 shares in the last quarter. Richmond Investment Services LLC increased its stake in McDonald's by 1.4% in the fourth quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant's stock valued at $696,000 after acquiring an additional 32 shares during the last quarter. Papamarkou Wellner Asset Management inc. increased its stake in McDonald's by 0.4% in the fourth quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant's stock valued at $2,692,000 after acquiring an additional 32 shares during the last quarter. Finally, Physician Wealth Advisors Inc. increased its stake in McDonald's by 1.6% in the fourth quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock valued at $642,000 after acquiring an additional 33 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is taking direct aim at Starbucks with a menu strategy focused on afternoon traffic. Expanded beverage and snack offerings could help the company capture additional dayparts and improve sales momentum. McDonald's Takes Direct Aim at Starbucks
• Positive Sentiment: New limited-time fall drinks and other menu items, along with the Hello Kitty and Godzilla Happy Meal promotion, could support customer visits and boost seasonal sales. McDonald's Has 4 New Limited-Time Menu Items
• Positive Sentiment: An app that helps restaurants fill open shifts has reportedly reduced the cost of missed shifts at one McDonald’s location. If scalable, better staffing could improve service consistency, labor efficiency, and restaurant-level profitability. Missed shifts were costly to this McDonald's
• Positive Sentiment: A bullish analyst cited a consensus price target substantially above the current trading level, arguing that MCD could offer significant upside after its recent decline. This is supportive sentiment, though targets remain estimates rather than catalysts. McDonald's Keeps Cratering
• Neutral Sentiment: Xbox-related in-game rewards and other international or promotional menu stories increase brand engagement but are unlikely to materially change near-term earnings expectations. Xbox 25th Anniversary McDonald's Rewards
• Neutral Sentiment: One valuation review described MCD as roughly fairly valued on a discounted-cash-flow basis, while market multiples suggested modest undervaluation. The assessment offers some downside support but acknowledges weaker recent U.S. sales growth. McDonald's Stock Looks Fairly Valued
• Negative Sentiment: Commentary on McDonald’s latest earnings characterized the results and execution as underwhelming, reinforcing concerns about soft same-store sales and the effectiveness of recent initiatives. Jim Cramer Breaks Down McDonald's Earnings
• Negative Sentiment: Former Taco Bell executive Greg Creed criticized McDonald’s Red Bull beverage strategy, raising questions about product-market fit and whether the new drinks will meaningfully improve afternoon demand. Taco Bell's Former Boss Criticizes McDonald's Red Bull Drink

Insider Buying and Selling at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 8,348 shares of company stock worth $2,355,634. 0.26% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several analysts recently weighed in on MCD shares. TD Cowen restated a "hold" rating on shares of McDonald's in a research report on Tuesday, August 4th. Robert W. Baird dropped their target price on shares of McDonald's from $305.00 to $285.00 and set a "neutral" rating for the company in a report on Wednesday, August 5th. UBS Group set a $305.00 price target on shares of McDonald's in a research note on Wednesday, August 5th. JPMorgan Chase & Co. decreased their price target on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a report on Monday, May 11th. Finally, KeyCorp lowered their price objective 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. One research 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 MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $325.44.

McDonald's Price Performance

McDonald's stock opened at $265.43 on Tuesday. The business has a 50 day moving average of $273.56 and a 200-day moving average of $294.81. The company has a market capitalization of $187.83 billion, a P/E ratio of 21.56, a P/E/G ratio of 3.05 and a beta of 0.41. McDonald's Corporation has a 1 year low of $260.96 and a 1 year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results 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. 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 for the quarter, compared to the consensus estimate of $7.13 billion. During the same period last year, the company earned $3.19 EPS. The firm's revenue was up 3.7% compared to the same quarter last year. Equities analysts anticipate that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Announces Dividend

The firm 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. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Tuesday, September 1st. McDonald's's payout ratio is 60.44%.

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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