Swiss National Bank Sells 105,600 Shares of McDonald's Corporation $MCD

Key Points

• Swiss National Bank reduced its McDonald's stake by 5.1% in the fourth quarter, selling 105,600 shares and ending with 1,955,500 shares valued at about $597.7 million.
• Insider selling has picked up, with executives Joseph M. Erlinger and Desiree Ralls-Morrison both selling shares recently; insiders have sold 11,307 shares worth $3.26 million over the last three months.
• Analysts remain moderately positive on MCD, with 16 Buy ratings and a consensus “Moderate Buy” price target of $336.26, even as the stock trades below its 200-day average and near its 52-week low.

Swiss National Bank lowered its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 5.1% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,955,500 shares of the fast-food giant's stock after selling 105,600 shares during the quarter. Swiss National Bank owned 0.27% of McDonald's worth $597,659,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Your Advocates Ltd. LLP bought a new stake in McDonald's in the fourth quarter valued at about $27,000. Park Place Capital Corp grew its stake in McDonald's by 95.7% during the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock worth $28,000 after buying an additional 45 shares during the last quarter. DecisionPoint Financial LLC grew its stake in McDonald's by 1,616.7% during the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock worth $31,000 after buying an additional 97 shares during the last quarter. Entrust Financial LLC bought a new stake in McDonald's during the fourth quarter worth about $31,000. Finally, Painted Porch Advisors LLC grew its stake in McDonald's by 735.7% during the third quarter. Painted Porch Advisors LLC now owns 117 shares of the fast-food giant's stock worth $36,000 after buying an additional 103 shares during the last quarter. Institutional investors own 70.29% of the company's stock.

Key Stories Impacting McDonald's

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

• Positive Sentiment: McDonald’s new FIFA World Cup meal promotions, collectible cups, and Squishmallows tie-ins could lift traffic and drive incremental sales through limited-time demand. McDonald's FIFA World Cup meals with Squishmallows and 9 collectible cups are here
• Positive Sentiment: McDonald’s is testing AI-powered drive-thru systems, which could improve service speed, reduce labor pressure, and support margins if the rollout works well. McDonald’s testing AI drive-thru system at select US locations
• Positive Sentiment: Analyst sentiment remains constructive, with coverage pointing to a “Moderate Buy” consensus on MCD. McDonald's Corporation NYSE: MCD Given Consensus Rating of "Moderate Buy" by Analysts
• Neutral Sentiment: McDonald’s is receiving additional attention from commentary framing it as a long-term buy-on-weakness name, but this is more sentiment than a fresh fundamental catalyst. Jim Cramer Discusses a Strategic Buying Plan to Build a Great Cost Basis in McDonald’s
• Negative Sentiment: An insider sale by executive Joseph M. Erlinger may weigh on sentiment, even though insider sales do not always indicate a weaker outlook. Joseph M. Erlinger insider sale
• Negative Sentiment: Recent analysis highlighted that MCD shares have fallen over the past few months amid cost pressures, weaker low-income demand, and slower sales growth, which remains a key overhang for the stock. McDonald's Stock Slides 13% in 3 Months: Buy the Dip or Stay Away?
• Negative Sentiment: There is also some concern around customer frustration with drive-thru changes and workplace safety scrutiny, which could hurt brand perception if the issues persist. McDonald's quietly makes a major change to its drive thru and customers are furious

Insider Activity at McDonald's

In other news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction that occurred 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 $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were 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 owned by insiders.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. Piper Sandler upped their price objective on shares of McDonald's from $323.00 to $325.00 and gave the stock a "neutral" rating in a research note on Thursday, February 12th. Evercore set a $350.00 price objective on shares of McDonald's in a research note on Friday, May 8th. Tigress Financial upped their price objective on shares of McDonald's from $360.00 to $385.00 and gave the stock a "buy" rating in a research note on Friday, March 6th. Barclays decreased their price objective on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Finally, Erste Group Bank cut shares of McDonald's from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, McDonald's has a consensus rating of "Moderate Buy" and an average price target of $336.26.

McDonald's Price Performance

MCD opened at $285.02 on Friday. McDonald's Corporation has a one year low of $271.85 and a one year high of $341.75. The company's 50 day simple moving average is $289.83 and its 200-day simple moving average is $306.90. The stock has a market capitalization of $202.51 billion, a P/E ratio of 23.50, a price-to-earnings-growth ratio of 2.81 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating the consensus estimate 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 business had revenue of $6.52 billion for the quarter, compared to analysts' expectations of $6.47 billion. During the same period in the prior year, the firm earned $2.67 earnings per share. McDonald's's revenue was up 9.4% compared to the same quarter last year. As a group, analysts anticipate that McDonald's Corporation will post 12.93 EPS for the current year.

McDonald's Dividend Announcement

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

McDonald's 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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