SVB Wealth LLC Sells 5,794 Shares of McDonald's Corporation $MCD

Key Points

• SVB Wealth LLC cut its McDonald’s position by 40.7% in the second quarter, selling 5,794 shares and retaining 8,444 shares valued at approximately $2.28 million. Institutional investors collectively 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, slightly below expectations.
• The company declared a quarterly dividend of $1.86 per share, equal to a 2.9% annualized yield. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $321.35, versus a recent share price of $253.59.

SVB Wealth LLC decreased its position in McDonald's Corporation (NYSE:MCD - Free Report) by 40.7% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 8,444 shares of the fast-food giant's stock after selling 5,794 shares during the quarter. SVB Wealth LLC's holdings in McDonald's were worth $2,283,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. NorthRock Partners LLC boosted its holdings in shares of McDonald's by 1.4% during the second quarter. NorthRock Partners LLC now owns 23,121 shares of the fast-food giant's stock worth $6,250,000 after purchasing an additional 314 shares during the period. Community Bank N.A. increased its holdings in McDonald's by 18.8% during the 2nd quarter. Community Bank N.A. now owns 14,533 shares of the fast-food giant's stock valued at $3,928,000 after purchasing an additional 2,300 shares during the period. RFG Advisory LLC increased its holdings in McDonald's by 15.2% during the 2nd quarter. RFG Advisory LLC now owns 12,872 shares of the fast-food giant's stock valued at $3,479,000 after purchasing an additional 1,699 shares during the period. Stableford Capital II LLC raised its position in McDonald's by 16.8% during the 2nd quarter. Stableford Capital II LLC now owns 3,467 shares of the fast-food giant's stock valued at $937,000 after purchasing an additional 499 shares during the last quarter. Finally, CORDA Investment Management LLC. lifted its holdings in McDonald's by 5.4% in the 2nd quarter. CORDA Investment Management LLC. now owns 89,124 shares of the fast-food giant's stock worth $24,091,000 after buying an additional 4,571 shares during the period. 70.29% of the stock is owned by institutional investors.

McDonald's Stock Performance

McDonald's stock opened at $253.59 on Thursday. The stock's 50 day simple moving average is $268.81 and its two-hundred day simple moving average is $287.58. The stock has a market cap of $179.45 billion, a price-to-earnings ratio of 20.60, a PEG ratio of 2.76 and a beta of 0.41. McDonald's Corporation has a fifty-two week low of $253.35 and a fifty-two week 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, topping the consensus estimate of $3.32 by $0.06. The firm had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The business's revenue was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.19 EPS. On average, analysts predict that McDonald's Corporation will post 12.88 earnings per share for the current year.

McDonald's Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald's's dividend payout ratio is presently 60.44%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Freedom Capital upgraded McDonald's from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 5th. KeyCorp decreased their target price on McDonald's from $315.00 to $305.00 and set an "overweight" rating for the company in a report on Wednesday, August 5th. Wells Fargo & Company dropped their price target on McDonald's from $320.00 to $300.00 and set an "overweight" rating for the company in a research note on Thursday, July 16th. BTIG Research reiterated a "buy" rating and issued a $350.00 price target on shares of McDonald's in a report on Wednesday, August 5th. Finally, Deutsche Bank Aktiengesellschaft lifted their price target on shares of McDonald's from $335.00 to $345.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $321.35.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s is launching several traffic-driving initiatives, including a one-day $1 cheeseburger promotion, new SpongeBob and One Piece Happy Meal toys, and a first-of-its-kind fall flavor in Canada replacing the company’s traditional pumpkin-spice offering. These campaigns could support customer visits and seasonal sales, although their financial impact is likely limited. McDonald’s Is Offering $1 Cheeseburgers
• Positive Sentiment: Analysts continue to view McDonald’s as a relatively defensive consumer stock amid uncertainty around inflation and Federal Reserve policy. Its franchise-heavy model, global scale and dividend profile may provide support if market volatility increases. Defensive Stocks to Watch
• Neutral Sentiment: McDonald’s is slowing its restaurant expansion pace to protect returns as development costs rise and consumers remain price-sensitive. The strategy may improve the economics of new locations, but it also implies a more measured growth outlook. McDonald’s Slower Expansion Pace
• Negative Sentiment: McDonald’s reportedly faces potentially significant fines related to the use of disposable cups. If confirmed, the penalties could increase costs and add to environmental-compliance risk. McDonald’s Faces Millions in Fines
• Negative Sentiment: Some consumer coverage criticizes new menu items and reduced children’s amenities, potentially highlighting affordability, value and customer-experience concerns. These stories are primarily reputational and are unlikely to materially affect near-term financial results on their own.

McDonald's Company 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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