TD Waterhouse Canada Inc. Cuts Holdings in McDonald's Corporation $MCD

Key Points

• TD Waterhouse Canada Inc. cut its stake in McDonald's by 6.4% in Q4, selling 20,580 shares and now holding 303,009 shares worth about $92.6 million.
• McDonald's beat Q4 expectations, reporting $3.12 EPS versus $3.05 expected and $7.01 billion in revenue (up 9.7% year-over-year), and it pays a quarterly dividend of $1.86 (annualized yield ~2.4%).
• Insiders have been net sellers recently, disposing of 71,657 shares in the last 90 days (valued at ~$23.7M), while institutional investors hold about 70.3% of the stock and insiders own 0.26%.

TD Waterhouse Canada Inc. cut its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 6.4% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 303,009 shares of the fast-food giant's stock after selling 20,580 shares during the quarter. TD Waterhouse Canada Inc.'s holdings in McDonald's were worth $92,609,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in MCD. Evergreen Private Wealth LLC boosted its stake in McDonald's by 162.5% in the third quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant's stock valued at $26,000 after acquiring an additional 52 shares during the last quarter. Park Place Capital Corp boosted its stake in McDonald's by 95.7% in the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after acquiring an additional 45 shares during the last quarter. Painted Porch Advisors LLC boosted its stake in McDonald's by 735.7% in the third quarter. Painted Porch Advisors LLC now owns 117 shares of the fast-food giant's stock valued at $36,000 after acquiring an additional 103 shares during the last quarter. Davis Capital Management purchased a new position in McDonald's in the third quarter valued at about $37,000. Finally, Saranac Partners Ltd purchased a new position in McDonald's in the third quarter valued at about $37,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at McDonald's

In related news, CMO Edith Morgan Flatley sold 4,692 shares of the company's stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $331.00, for a total transaction of $1,553,052.00. Following the sale, the chief marketing officer directly owned 6,200 shares in the company, valued at approximately $2,052,200. This represents a 43.08% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through 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 transaction of $2,066,731.29. Following the sale, the executive vice president owned 2,291 shares in the company, valued at $763,567.39. The trade was a 73.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 71,657 shares of company stock valued at $23,723,307. 0.26% of the stock is owned by corporate insiders.

McDonald's Trading Up 0.1%

Shares of MCD stock opened at $311.78 on Monday. The stock has a market capitalization of $221.63 billion, a P/E ratio of 26.09, a PEG ratio of 2.81 and a beta of 0.53. The firm's 50 day moving average is $319.62 and its 200 day moving average is $311.90. McDonald's Corporation has a 12 month low of $283.47 and a 12 month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, beating analysts' consensus estimates 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%. McDonald's's revenue was up 9.7% compared to the same quarter last year. During the same period in the prior year, the company posted $2.83 EPS. On average, equities analysts predict that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were paid a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Tuesday, March 3rd. McDonald's's dividend payout ratio is presently 62.26%.

Analysts Set New Price Targets

MCD has been the topic of a number of research analyst reports. Barclays boosted their target price on shares of McDonald's from $372.00 to $380.00 and gave the company an "overweight" rating in a research note on Thursday, February 12th. TD Cowen reiterated a "hold" rating and issued a $320.00 target price on shares of McDonald's in a research note on Thursday, February 12th. Guggenheim dropped their target price on shares of McDonald's from $325.00 to $320.00 and set a "neutral" rating on the stock in a research note on Friday, February 13th. Tigress Financial boosted their target price on shares of McDonald's from $360.00 to $385.00 and gave the company a "buy" rating in a research note on Friday, March 6th. Finally, KeyCorp boosted their target price on shares of McDonald's from $340.00 to $354.00 and gave the company an "overweight" rating in a research note on Tuesday, March 3rd. Seventeen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $339.69.

McDonald's Company 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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