Tabor Asset Management LP Makes New $4.46 Million Investment in McDonald's Corporation $MCD

Key Points

• Tabor Asset Management LP acquired 14,670 shares of McDonald's in Q3 valued at about $4.46 million, making MCD roughly 2.7% of its portfolio and its 16th-largest holding.
• Insider selling has been substantial recently — insiders sold 71,517 shares worth $23.66 million over the past three months (notably EVP Desiree Ralls‑Morrison and EVP Jonathan Banner), leaving insiders with about 0.25% ownership.
• Fundamentals and payout: McDonald's beat estimates with $3.12 EPS and $7.01B revenue in the latest quarter, has a market cap ~ $235B, pays a $1.86 quarterly dividend ($7.44 annual, ~2.2% yield), and carries a consensus "Hold" rating with an average price target of $339.69.

Tabor Asset Management LP acquired a new stake in McDonald's Corporation (NYSE:MCD - Free Report) during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 14,670 shares of the fast-food giant's stock, valued at approximately $4,458,000. McDonald's comprises about 2.7% of Tabor Asset Management LP's portfolio, making the stock its 16th largest position.

Several other institutional investors have also recently made changes to their positions in the business. Evergreen Private Wealth LLC lifted its stake in shares of McDonald's by 162.5% in the 3rd quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant's stock valued at $26,000 after purchasing an additional 52 shares during the period. Financial Gravity Companies Inc. purchased a new position in McDonald's in the second quarter valued at $29,000. Traub Capital Management LLC acquired a new position in shares of McDonald's in the second quarter worth about $29,000. Davis Capital Management purchased a new stake in shares of McDonald's during the 3rd quarter worth about $37,000. Finally, Miller Wealth Advisors LLC acquired a new stake in shares of McDonald's during the 3rd quarter valued at about $38,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

Insiders Place Their Bets

In other news, EVP Desiree Ralls-Morrison sold 2,486 shares of the business's stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $320.00, for a total transaction of $795,520.00. Following the transaction, the executive vice president directly owned 6,268 shares in the company, valued at $2,005,760. The trade was a 28.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Jonathan Banner sold 6,201 shares of the company's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $333.29, for a total value of $2,066,731.29. Following the completion of the sale, the executive vice president owned 2,291 shares of the company's stock, valued at $763,567.39. This trade represents a 73.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 71,517 shares of company stock worth $23,655,503. 0.25% of the stock is currently owned by insiders.

McDonald's Price Performance

Shares of NYSE:MCD opened at $331.03 on Tuesday. The business's 50 day moving average price is $318.66 and its 200-day moving average price is $311.15. McDonald's Corporation has a 1 year low of $283.47 and a 1 year high of $341.75. The firm has a market capitalization of $235.17 billion, a PE ratio of 27.70, a P/E/G ratio of 2.92 and a beta of 0.51.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.05 by $0.07. The company had revenue of $7.01 billion for the quarter, compared to analysts' expectations of $6.81 billion. McDonald's had a net margin of 31.85% and a negative return on equity of 343.90%. The firm's quarterly revenue was up 9.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.83 EPS. As a group, analysts expect that McDonald's Corporation will post 12.25 earnings per share for the current year.

McDonald's Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 17th. Shareholders of record on Tuesday, March 3rd will be issued a $1.86 dividend. The ex-dividend date is Tuesday, March 3rd. This represents a $7.44 dividend on an annualized basis and a yield of 2.2%. McDonald's's dividend payout ratio is presently 62.26%.

Wall Street Analysts Forecast Growth

MCD has been the subject of a number of analyst reports. Piper Sandler upped their price target on McDonald's from $323.00 to $325.00 and gave the stock a "neutral" rating in a report on Thursday, February 12th. Citigroup boosted their price objective on McDonald's from $371.00 to $375.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. Erste Group Bank raised McDonald's from a "hold" rating to a "buy" rating in a research note on Wednesday, February 18th. BTIG Research increased their target price on McDonald's from $360.00 to $370.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. Finally, Argus raised shares of McDonald's from a "hold" rating to a "buy" rating and set a $380.00 price target on the stock in a research note on Friday, February 13th. Seventeen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, McDonald's currently has a consensus rating of "Hold" and an average price target of $339.69.

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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