State Street Corp Buys 959,140 Shares of McDonald's Corporation $MCD

Key Points

• State Street Corp increased its McDonald’s stake by 2.7% in the fourth quarter, buying 959,140 additional shares and bringing its total holdings to about 35.98 million shares valued at roughly $11.0 billion.
• McDonald’s delivered a solid quarterly earnings beat, reporting EPS of $2.83 versus the $2.74 consensus and revenue of $6.52 billion, up 9.4% from a year earlier.
• The company continues to support investors with dividends and analyst optimism, announcing a quarterly payout of $1.86 per share, while Wall Street maintains a “Moderate Buy” view with an average price target of $336.26.

State Street Corp boosted its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 2.7% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 35,983,997 shares of the fast-food giant's stock after buying an additional 959,140 shares during the quarter. State Street Corp owned approximately 5.05% of McDonald's worth $10,997,789,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of McDonald's by 1.0% in the 4th 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 in the last quarter. Geode Capital Management LLC raised its holdings in shares of McDonald's by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock valued at $5,195,965,000 after purchasing an additional 76,090 shares in the last quarter. Norges Bank bought a new stake in shares of McDonald's in the 4th quarter valued at about $2,890,438,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of McDonald's by 7.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant's stock valued at $1,699,314,000 after purchasing an additional 384,762 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in shares of McDonald's by 0.8% in the 4th quarter. Bank of New York Mellon Corp now owns 5,283,655 shares of the fast-food giant's stock valued at $1,614,843,000 after purchasing an additional 40,506 shares in the last quarter. Institutional investors own 70.29% of the company's stock.

McDonald's Price Performance

MCD stock opened at $284.88 on Friday. The firm's fifty day simple moving average is $289.38 and its 200-day simple moving average is $306.75. McDonald's Corporation has a 12 month low of $271.85 and a 12 month high of $341.75. The company has a market capitalization of $202.41 billion, a P/E ratio of 23.49, a price-to-earnings-growth ratio of 2.84 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last announced 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 net margin of 31.62% and a negative return on equity of 442.10%. The firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the prior year, the firm posted $2.67 earnings per share. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. As a group, sell-side analysts forecast that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be issued a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.6%. McDonald's's dividend payout ratio is 61.34%.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: Commentary highlighted McDonald’s as a “rare mega-cap” with accelerating fundamentals, citing 3.8% global comparable sales growth, more than $9 billion in loyalty sales over 90 days, and 9.4% year-over-year revenue growth, which supports the bull case for the stock. McDonald’s Will Trade at This Price in 2028
• Positive Sentiment: McDonald’s is testing AI-powered drive-thru ordering, and early results from a million orders appear promising; if rolled out successfully, this could improve efficiency and margins over time. McDonald’s Is Letting AI Take Your Orders Again. A Million Orders Later, the Results Look Promising.
• Positive Sentiment: Promotional activity tied to FIFA World Cup meals, collectible cups, and Squishmallows could help drive customer traffic and add some sales momentum. McDonald's FIFA World Cup meals with Squishmallows and 9 collectible cups are here
• Neutral Sentiment: Analyst and investor commentary remains generally supportive, with reports noting McDonald’s continues to attract attention as a defensive, widely followed stock. McDonald's Corporation (MCD) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Insider selling by executive Joseph Erlinger may weigh on sentiment slightly, even though such sales do not necessarily reflect a change in business outlook. Joseph Erlinger Sells 5,252 Shares of McDonald's NYSE: MCD Stock
• Negative Sentiment: Some recent coverage has also raised concerns about customer pushback on operational changes and workplace safety issues, which could create headline risk if they persist. Should McDonald’s AI Drive Thru Push and Safety Scrutiny Require Action From McDonald’s (MCD) Investors?

Wall Street Analysts Forecast Growth

MCD has been the subject of several recent research reports. BTIG Research restated a "buy" rating and issued a $370.00 price target on shares of McDonald's in a report on Thursday, May 7th. Erste Group Bank lowered shares of McDonald's from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. TD Cowen reiterated a "hold" rating on shares of McDonald's in a research note on Friday. Barclays reduced their price objective on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Finally, Cfra upgraded shares of McDonald's to a "buy" rating in a research note on Friday, May 8th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $336.26.

Insiders Place Their Bets

In related news, insider Joseph M. Erlinger sold 5,252 shares of the 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 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 sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, 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 transaction of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 11,307 shares of company stock worth $3,262,622 over the last three months. 0.26% of the stock is currently owned by insiders.

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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