Trek Financial LLC Decreases Position in McDonald's Corporation $MCD

Key Points

• Trek Financial LLC cut its McDonald’s stake by 74.2% in the fourth quarter, selling 4,072 shares and leaving it with 1,417 shares valued at about $433,000.
• McDonald’s recently beat quarterly earnings and revenue expectations, reporting EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion versus $6.47 billion expected, with revenue up 9.4% year over year.
• Despite mixed analyst views and some insider selling, Wall Street remains generally constructive on the stock, with 17 Buy ratings and an average target price of $334.45.

Trek Financial LLC decreased its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 74.2% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,417 shares of the fast-food giant's stock after selling 4,072 shares during the period. Trek Financial LLC's holdings in McDonald's were worth $433,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently modified their holdings of the company. Your Advocates Ltd. LLP purchased a new position in McDonald's in the fourth quarter valued at about $27,000. Park Place Capital Corp boosted its holdings 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 purchasing an additional 45 shares during the last quarter. DecisionPoint Financial LLC boosted its holdings in McDonald's by 1,616.7% in the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after purchasing an additional 97 shares during the last quarter. Painted Porch Advisors LLC boosted its holdings 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 purchasing an additional 103 shares during the last quarter. Finally, Saranac Partners Ltd purchased a new position in McDonald's in the third quarter valued at about $37,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

McDonald's Stock Up 0.3%

NYSE:MCD opened at $275.56 on Thursday. The business's 50 day moving average is $306.54 and its two-hundred day moving average is $310.47. McDonald's Corporation has a 52 week low of $271.98 and a 52 week high of $341.75. The company has a market cap of $195.79 billion, a PE ratio of 22.72, a P/E/G ratio of 2.73 and a beta of 0.43.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. The business had revenue of $6.52 billion for the quarter, compared to analysts' expectations of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The business's quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the firm earned $2.67 EPS. As a group, sell-side analysts expect that McDonald's Corporation will post 12.96 EPS for the current fiscal year.

More McDonald's News

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

• Positive Sentiment: McDonald’s announced a landmark stadium naming-rights deal with the Chicago Fire, branding the new venue “McDonald’s Park.” The partnership expands brand visibility, includes a new flagship restaurant, and supports youth soccer and community programs, which could help long-term brand strength. McDonald's and Chicago Fire Football Club Announce Landmark Stadium Naming Rights Partnership
• Neutral Sentiment: Several reports highlighted McDonald’s recent first-quarter beat and noted that analysts still see the company as a strong blue-chip dividend name, even after RBC trimmed its price target. This supports the view that the business remains fundamentally solid, but the market is still cautious on near-term upside. RBC Capital Trims Price Target on McDonald’s (MCD) Despite Better-than-Expected Q1
• Neutral Sentiment: Other coverage focused on McDonald’s pricing, breakfast promotions, and broader restaurant-stock trends, which may influence consumer perception but do not appear to be immediate stock catalysts.
• Negative Sentiment: Investors are weighing worries that rising gas prices could squeeze consumers and reduce fast-food visits, adding pressure to McDonald’s shares after the recent earnings report. McDonald's Stock Hits 52-Week Lows: High Gas Prices Could Make Things Worse

Analysts Set New Price Targets

MCD has been the subject of a number of analyst reports. Tigress Financial increased their price target on McDonald's from $360.00 to $385.00 and gave the company a "buy" rating in a report on Friday, March 6th. Jefferies Financial Group increased their price target on McDonald's from $360.00 to $375.00 and gave the company a "buy" rating in a report on Thursday, February 12th. JPMorgan Chase & Co. reduced their target price on McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a report on Monday. BTIG Research reaffirmed a "buy" rating and set a $370.00 target price on shares of McDonald's in a report on Thursday, May 7th. Finally, Truist Financial increased their target price on McDonald's from $356.00 to $370.00 and gave the stock a "buy" rating in a report on Thursday, February 12th. Seventeen research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $334.45.

Insider Transactions at McDonald's

In other news, CEO Christopher J. Kempczinski sold 26,276 shares of the stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $333.54, for a total transaction of $8,764,097.04. Following the sale, the chief executive officer directly owned 22,900 shares in the company, valued at approximately $7,638,066. This represents a 53.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Jonathan Banner sold 6,201 shares of the stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $333.29, for a total value 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. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 38,395 shares of company stock worth $12,710,070. 0.26% of the stock is currently owned by company insiders.

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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