TD Waterhouse Canada Inc. Has $119.01 Million Stock Holdings in McDonald's Corporation $MCD

Key Points

• TD Waterhouse Canada reduced its McDonald’s position by 1.7% in the second quarter, selling 7,810 shares and retaining 441,443 shares valued at approximately $119.01 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s reported quarterly EPS of $3.38, beating estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion but fell slightly short of forecasts. The company declared a quarterly dividend of $1.86, equivalent to a 2.9% annualized yield.
• MCD shares opened at $259.51, near their 12-month low of $256.12. Despite recent price-target reductions and sales concerns, analysts maintain a consensus “Moderate Buy” rating with an average target price of $321.35.

TD Waterhouse Canada Inc. trimmed its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 1.7% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 441,443 shares of the fast-food giant's stock after selling 7,810 shares during the period. TD Waterhouse Canada Inc. owned about 0.06% of McDonald's worth $119,007,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently bought and sold shares of the company. IFC & Insurance Marketing Inc. acquired a new position in McDonald's in the 4th quarter worth about $29,000. Abound Financial LLC acquired a new stake in shares of McDonald's during the 4th quarter valued at about $30,000. Entrust Financial LLC acquired a new stake in shares of McDonald's during the 4th quarter valued at about $31,000. Purpose Unlimited Inc. bought a new stake in shares of McDonald's in the 4th quarter valued at approximately $31,000. Finally, GKV Capital Management Co. Inc. acquired a new position in McDonald's in the first quarter worth approximately $33,000. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Stock Performance

Shares of MCD stock opened at $259.51 on Friday. The stock's 50 day simple moving average is $269.96 and its 200 day simple moving average is $289.62. McDonald's Corporation has a twelve month low of $256.12 and a twelve month high of $341.75. The company has a market capitalization of $183.64 billion, a price-to-earnings ratio of 21.08, a PEG ratio of 2.82 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share 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 company's revenue for the quarter was up 3.7% on a year-over-year basis. During the same period in the previous year, the company earned $3.19 EPS. On average, analysts forecast that McDonald's Corporation will post 12.87 EPS for the current fiscal year.

McDonald's Announces Dividend

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

Insider Buying and Selling at McDonald's

In related news, insider Joseph Erlinger sold 5,252 shares of the company's stock in a transaction 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 completion of the sale, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.26% 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 launched a Texas-exclusive meal featuring collectible cups tied to regional Texas locations, alongside the return of Spicy Chicken McNuggets. The limited-time products could create urgency, generate social-media attention and support restaurant traffic. McDonald's Texas Meal releases with new themed collectible cups
• Positive Sentiment: The company is bringing back a popular dessert and promoting additional limited-time offerings. These initiatives may help sustain customer engagement, although their financial impact is not yet known. McDonald's brings back a popular dessert
• Neutral Sentiment: A market commentary argues that MCD’s selloff may have gone too far and presents a contrarian investment case, citing a potential price target of $316.21. This is an analyst opinion rather than a new company fundamental. McDonald's Is Near a 52-Week Low
• Negative Sentiment: Reports say McDonald’s $3 value menu has not delivered the expected benefit for customers or the company. Confusing availability and dissatisfaction with discount offers could weigh on affordability perceptions, traffic and sales momentum. McDonald's $3 menu has a problem
• Negative Sentiment: McDonald’s is reported to be down 4.8% since its latest earnings report, when revenue came in slightly below estimates despite an earnings beat. The decline reflects ongoing investor concern about sales growth and execution. McDonald's Down 4.8% Since Last Earnings Report
• Negative Sentiment: The discontinuation of the Pumpkin Spice Latte has triggered customer backlash. Removing a popular seasonal product could reduce fall beverage demand and damage customer sentiment, while free-coffee promotions may pressure margins. McDonald’s axes a popular coffee flavor

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on MCD shares. Wells Fargo & Company cut their price objective on shares of McDonald's from $320.00 to $300.00 and set an "overweight" rating on the stock in a research report on Thursday, July 16th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of McDonald's from $335.00 to $345.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Mizuho dropped their price target on shares of McDonald's from $300.00 to $290.00 and set a "neutral" rating on the stock in a research note on Friday, July 31st. Tigress Financial raised their price target on shares of McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a report on Friday, July 17th. Finally, Robert W. Baird raised shares of McDonald's to a "hold" rating in a research note on Monday, August 24th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat.com, McDonald's presently has a consensus rating of "Moderate Buy" and an average target price of $321.35.

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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