T. Rowe Price Investment Management Inc. Raises Position in McDonald's Corporation $MCD

Key Points

• T. Rowe Price Investment Management Inc. increased its stake in McDonald's by 732.6%, owning 650,544 shares worth approximately $203.2 million as of the last quarter.
• McDonald's reported a quarterly earnings per share (EPS) of $3.19, surpassing estimates, with revenues of $6.84 billion, reflecting a 5.4% year-over-year growth.
• The company declared a quarterly dividend of $1.77 per share, expected to be paid on September 16, contributing to an annualized yield of 2.3%.

T. Rowe Price Investment Management Inc. lifted its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 732.6% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 650,544 shares of the fast-food giant's stock after buying an additional 572,408 shares during the period. T. Rowe Price Investment Management Inc. owned about 0.09% of McDonald's worth $203,211,000 at the end of the most recent quarter.

Other institutional investors have also bought and sold shares of the company. Mascagni Wealth Management Inc. purchased a new stake in shares of McDonald's during the fourth quarter valued at approximately $25,000. Abound Financial LLC bought a new stake in McDonald's in the first quarter worth about $30,000. Pinney & Scofield Inc. purchased a new position in McDonald's in the fourth quarter valued at about $29,000. Redmont Wealth Advisors LLC bought a new position in shares of McDonald's during the 1st quarter valued at approximately $31,000. Finally, Financial Gravity Asset Management Inc. bought a new position in shares of McDonald's during the 1st quarter valued at approximately $31,000. Institutional investors own 70.29% of the company's stock.

Analyst Upgrades and Downgrades

MCD has been the topic of several research analyst reports. JPMorgan Chase & Co. upped their price objective on McDonald's from $305.00 to $310.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. KeyCorp reissued an "overweight" rating and issued a $335.00 price target (up previously from $325.00) on shares of McDonald's in a research report on Thursday, August 7th. Robert W. Baird raised their price objective on shares of McDonald's from $300.00 to $315.00 and gave the stock a "neutral" rating in a report on Friday, May 2nd. Citigroup boosted their target price on shares of McDonald's from $364.00 to $365.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. Finally, Guggenheim reaffirmed a "neutral" rating on shares of McDonald's in a report on Friday, August 8th. Thirteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $326.87.

McDonald's Stock Up 0.7%

NYSE:MCD opened at $313.13 on Thursday. The stock has a market cap of $223.45 billion, a P/E ratio of 26.83, a PEG ratio of 3.17 and a beta of 0.52. The business's 50-day moving average price is $298.57 and its two-hundred day moving average price is $305.40. McDonald's Corporation has a twelve month low of $276.53 and a twelve month high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, topping the consensus estimate of $3.15 by $0.04. The company had revenue of $6.84 billion during the quarter, compared to analyst estimates of $6.68 billion. McDonald's had a negative return on equity of 225.52% and a net margin of 32.21%.McDonald's's revenue was up 5.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.97 earnings per share. On average, equities research analysts expect that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd will be given a dividend of $1.77 per share. The ex-dividend date is Tuesday, September 2nd. This represents a $7.08 annualized dividend and a dividend yield of 2.3%. McDonald's's dividend payout ratio (DPR) is 60.67%.

Insider Activity at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,487 shares of McDonald's stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total transaction of $770,970.00. Following the completion of the sale, the executive vice president owned 8,754 shares of the company's stock, valued at $2,713,740. The trade was a 22.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Jonathan Banner sold 1,000 shares of the company's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $310.00, for a total value of $310,000.00. Following the completion of the transaction, the executive vice president owned 99 shares of the company's stock, valued at $30,690. The trade was a 90.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 8,280 shares of company stock valued at $2,525,178. 0.25% of the stock is currently owned by insiders.

About McDonald's

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.

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