Teacher Retirement System of Texas Increases Holdings in McDonald's Corporation $MCD

Key Points

• Teacher Retirement System of Texas increased its stake in McDonald's by 8.6% in Q4, buying 19,320 shares to hold 243,923 shares now valued at about $74.55 million.
• McDonald's beat quarterly expectations with EPS of $3.12 vs. $3.05 and revenue of $7.01B (up 9.7% YoY), and it declared a $1.86 quarterly dividend ($7.44 annual, ~2.5% yield).
• Insider selling and margin risk: insiders sold 71,657 shares (~$23.7M) over 90 days (including CEO sales), while aggressive value‑menu promotions and recent analyst trims create near‑term margin and sentiment headwinds despite a "Moderate Buy" consensus and ~$340.93 average price target.

Teacher Retirement System of Texas grew its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 8.6% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 243,923 shares of the fast-food giant's stock after buying an additional 19,320 shares during the period. Teacher Retirement System of Texas' holdings in McDonald's were worth $74,550,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently bought and sold shares of the business. WD Rutherford LLC lifted its holdings in McDonald's by 1.0% during the 3rd quarter. WD Rutherford LLC now owns 3,261 shares of the fast-food giant's stock worth $991,000 after buying an additional 33 shares during the last quarter. Physician Wealth Advisors Inc. increased its position in shares of McDonald's by 1.6% during the fourth quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock worth $642,000 after purchasing an additional 33 shares in the last quarter. Symmetry Partners LLC increased its position in shares of McDonald's by 2.0% during the third quarter. Symmetry Partners LLC now owns 1,771 shares of the fast-food giant's stock worth $538,000 after purchasing an additional 34 shares in the last quarter. Jackson Hole Capital Partners LLC increased its position in shares of McDonald's by 0.3% during the third quarter. Jackson Hole Capital Partners LLC now owns 11,032 shares of the fast-food giant's stock worth $3,352,000 after purchasing an additional 34 shares in the last quarter. Finally, CFO4Life Group LLC increased its position in shares of McDonald's by 2.1% during the third quarter. CFO4Life Group LLC now owns 1,669 shares of the fast-food giant's stock worth $507,000 after purchasing an additional 34 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald's Stock Down 0.6%

Shares of MCD stock opened at $300.18 on Thursday. The stock has a market capitalization of $213.37 billion, a PE ratio of 25.12, a price-to-earnings-growth ratio of 2.73 and a beta of 0.53. McDonald's Corporation has a 52-week low of $283.47 and a 52-week high of $341.75. The stock's 50-day moving average price is $318.29 and its 200 day moving average price is $311.87.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.05 by $0.07. The firm had revenue of $7.01 billion for the quarter, compared to analysts' expectations of $6.81 billion. McDonald's had a negative return on equity of 343.90% and a net margin of 31.85%.The firm's revenue for the quarter was up 9.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.83 EPS. Analysts expect that McDonald's Corporation will post 13.22 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were given a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.5%. The ex-dividend date was Tuesday, March 3rd. McDonald's's payout ratio is 62.26%.

McDonald's News Summary

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

• Positive Sentiment: Launch of a revamped national value menu and expanded $3/under‑$3 deals, aimed at driving traffic and market share through lower‑price bundles — this supports near‑term comps and customer count. McDonald’s new value menu debuts across US
• Positive Sentiment: Menu refresh focused on higher‑protein items and beverage innovations (new “refreshers” and sodas) to respond to changing consumer tastes — could lift basket size and retain customers shifting toward protein-heavy options. McDonald’s revamps menu across 17 items
• Neutral Sentiment: Company rolling out new beverages and menu tweaks (nationwide menu makeover) that are incremental to sales but not a guaranteed margin driver. McDonald's announces new refreshers, variety of sodas coming soon
• Neutral Sentiment: Human‑interest item about an iconic California McDonald’s that never served customers — notable for brand trivia but immaterial for earnings. Open since the '70s, this Calif. McDonald's has never served a single customer
• Negative Sentiment: Equality watchdog says work is “ongoing” with McDonald’s on sexual‑harassment prevention — potential reputational and compliance risk that can affect franchise relations and labor initiatives. Equality watchdog says work 'ongoing' with McDonald's on sexual harassment prevention
• Negative Sentiment: Analyst downgrades and trims: Jefferies cut same‑store sales outlook, KeyCorp lowered expectations, and Morgan Stanley nudged down its price target — these notes add near‑term downward pressure on sentiment ahead of Q1 results. KeyCorp Has Lowered Expectations for McDonald's
• Negative Sentiment: Market concern that aggressive value promotions ($3 deals, $4 bundles) could compress margins if traffic gains don’t offset promotional cost — a key watch for earnings and margin guidance. McDonald's Reworks Its Value Menu With $3 Deals. Wall Street Is Watching.
• Negative Sentiment: Social‑media scrutiny over newly introduced “protein” menu badges raises questions about marketing accuracy and could dent credibility around the menu revamp. McDonald’s rolls out new ‘protein’ menu badges
• Negative Sentiment: Macro risk: Goldman Sachs warns of a potentially weak consumer stretch — a tougher spending environment would limit upside from promotions and value offers. Goldman Sachs warns US consumers could have a challenging few months

Insider Buying and Selling

In related news, insider Joseph M. Erlinger sold 2,626 shares of the business's stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $325.25, for a total value of $854,106.50. Following the transaction, the insider owned 5,398 shares in the company, valued at $1,755,699.50. The trade was a 32.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Christopher J. Kempczinski sold 26,277 shares of the business's stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $331.35, for a total value of $8,706,883.95. Following the transaction, the chief executive officer owned 22,900 shares in the company, valued at $7,587,915. The trade was a 53.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 71,657 shares of company stock worth $23,723,307. Insiders own 0.26% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on MCD. Mizuho lifted their target price on McDonald's from $300.00 to $325.00 and gave the stock a "neutral" rating in a research report on Friday, February 6th. Sanford C. Bernstein reiterated a "market perform" rating and set a $340.00 target price on shares of McDonald's in a research report on Thursday, February 12th. Oppenheimer upgraded McDonald's from a "market perform" rating to an "outperform" rating and set a $355.00 target price on the stock in a research report on Tuesday, January 6th. Wells Fargo & Company lifted their target price on McDonald's from $345.00 to $355.00 and gave the stock an "overweight" rating in a research report on Thursday, February 12th. Finally, Royal Bank Of Canada lifted their target price on McDonald's from $320.00 to $330.00 and gave the stock a "sector perform" rating in a research report on Thursday, February 12th. Seventeen research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $340.93.

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.

Want to see what other hedge funds are holding MCD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McDonald's Corporation (NYSE:MCD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.