State Street Corp Raises Position in McDonald's Corporation $MCD

Key Points

• State Street increased its McDonald’s stake by 1.8% in the second quarter, owning 36.1 million shares valued at approximately $9.75 billion, or 5.1% of the company. Institutional investors collectively own 70.29% of MCD.
• McDonald’s raised its quarterly dividend 4% to $1.93 per share, marking 50 consecutive years of increases and providing a roughly 3.1% annual yield. The company’s latest earnings beat estimates, although revenue slightly missed forecasts.
• Analyst sentiment remains moderately bullish, with a consensus “Moderate Buy” rating and a $317.04 price target, but several firms recently lowered their targets. Shares traded near $251.58, well below the 52-week high of $341.75, amid concerns about weak U.S. performance and execution challenges.

State Street Corp boosted its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 1.8% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 36,080,505 shares of the fast-food giant's stock after acquiring an additional 646,675 shares during the period. State Street Corp owned 5.10% of McDonald's worth $9,752,921,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of the business. Geode Capital Management LLC grew its position in shares of McDonald's by 0.4% in the fourth 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 acquired a new position in McDonald's during the fourth quarter worth $2,890,438,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in McDonald's by 7.4% during the fourth 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 worth $1,699,314,000 after buying an additional 384,762 shares during the last quarter. Bank of New York Mellon Corp grew its holdings in 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 buying an additional 40,506 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of McDonald's by 17.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant's stock worth $1,130,587,000 after acquiring an additional 533,448 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s remains an attractive income investment after reaching 50 consecutive years of dividend increases. The quarterly dividend was raised 4% to $1.93 per share, or $7.72 annually, supporting a forward yield above 3% at recent prices. McDonald’s Becomes a Dividend King
• Positive Sentiment: One bullish analysis argues that the selloff has created valuation upside, citing an estimated intrinsic value of $309.29, largely intact earnings expectations, a discounted multiple and efforts to reset U.S. value offerings and improve franchisee alignment. McDonald’s Stock Selloff Is Hiding an Even Better Setup
• Neutral Sentiment: The limited-time Global Favorites menu and the returning Monopoly promotion could support customer engagement and traffic, but neither is likely to materially change near-term earnings without evidence of sustained sales improvement. McDonald’s Global Favorites Menu
• Neutral Sentiment: Management says customers using GLP-1 medications are still visiting McDonald’s, increasingly choosing smaller portions such as Happy Meals. This may preserve visits but could pressure average transaction values unless McDonald’s successfully adapts its menu. McDonald’s CEO Discusses GLP-1 Users
• Negative Sentiment: Investor attention remains focused on disappointing U.S. performance and execution challenges. Investors will want measurable targets and timelines at the investor day; vague initiatives or additional discounting without traffic improvement could keep pressure on the stock. McDonald’s Investor Day Expectations
• Negative Sentiment: Recent comparisons with Restaurant Brands highlight stronger competitor earnings growth and Burger King momentum, increasing pressure on McDonald’s to demonstrate that its strategy can reverse slowing sales. McDonald’s vs. Restaurant Brands

Analyst Upgrades and Downgrades

Several research analysts have recently commented on MCD shares. TD Cowen reduced their price target on McDonald's from $300.00 to $282.00 and set a "hold" rating on the stock in a report on Friday, September 11th. Tigress Financial raised their price objective 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. Guggenheim reduced their target price on shares of McDonald's from $320.00 to $290.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 5th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $295.00 target price on shares of McDonald's in a report on Wednesday, August 5th. Finally, UBS Group reduced their price target on shares of McDonald's from $340.00 to $320.00 and set a "buy" rating on the stock in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $317.04.

McDonald's Trading Up 1.5%

MCD traded up $3.70 on Tuesday, hitting $251.58. The company had a trading volume of 2,386,045 shares, compared to its average volume of 4,012,262. The firm has a market cap of $178.03 billion, a P/E ratio of 20.44, a PEG ratio of 2.68 and a beta of 0.41. McDonald's Corporation has a 1 year low of $246.52 and a 1 year high of $341.75. The company's fifty day moving average price is $264.49 and its 200 day moving average price is $282.91.

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 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 company had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same quarter last year, the firm posted $3.19 earnings per share. McDonald's's revenue was up 3.7% compared to the same quarter last year. On average, analysts predict that McDonald's Corporation will post 12.88 earnings per share for the current year.

McDonald's Increases Dividend

The company also recently declared 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. This represents a $7.72 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Tuesday, December 1st. McDonald's's dividend payout ratio (DPR) 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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