VIRGINIA RETIREMENT SYSTEMS ET Al Purchases New Holdings in McDonald's Corporation $MCD

Key Points

• Virginia Retirement Systems acquired 258,769 McDonald’s shares in the second quarter, valued at approximately $69.95 million. Institutional investors collectively own 70.29% of the company.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $321.35, despite McDonald’s shares opening at $255.69 and trading near their 12-month low.
• McDonald’s exceeded quarterly EPS expectations, reporting $3.38 versus the $3.32 consensus, while revenue rose 3.7% year over year to $7.10 billion. The company also declared a quarterly dividend of $1.86 per share, representing a 2.9% annualized yield.

VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of McDonald's Corporation (NYSE:MCD - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 258,769 shares of the fast-food giant's stock, valued at approximately $69,948,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. IFC & Insurance Marketing Inc. acquired a new stake in McDonald's during the fourth quarter valued at approximately $29,000. Abound Financial LLC acquired a new position in shares of McDonald's in the 4th quarter worth approximately $30,000. Entrust Financial LLC acquired a new position in shares of McDonald's in the 4th quarter worth approximately $31,000. Purpose Unlimited Inc. bought a new position in shares of McDonald's during the 4th quarter worth approximately $31,000. Finally, GKV Capital Management Co. Inc. bought a new position in shares of McDonald's during the 1st quarter worth approximately $33,000. Institutional investors own 70.29% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on MCD. Robert W. Baird upgraded McDonald's to a "hold" rating in a research report on Monday, August 24th. Deutsche Bank Aktiengesellschaft lifted their price objective on McDonald's from $335.00 to $345.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Mizuho reduced their target price 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. KeyCorp lowered their target price on shares of McDonald's from $315.00 to $305.00 and set an "overweight" rating on the stock in a report on Wednesday, August 5th. Finally, Citigroup increased 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. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $321.35.

McDonald's Price Performance

MCD stock opened at $255.69 on Monday. McDonald's Corporation has a twelve month low of $255.49 and a twelve month high of $341.75. The company has a market cap of $180.94 billion, a P/E ratio of 20.77, a PEG ratio of 2.76 and a beta of 0.41. The business has a fifty day moving average of $269.67 and a 200-day moving average of $289.12.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company's revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter last year, the firm earned $3.19 EPS. As a group, equities research analysts anticipate that McDonald's Corporation will post 12.87 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be given a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.9%. McDonald's's dividend payout ratio (DPR) is currently 60.44%.

More McDonald's News

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

• Positive Sentiment: Valuation may attract contrarian buyers: McDonald’s is trading at roughly 19.15 times earnings, below the restaurant industry’s average multiple. Analysts point to global expansion, digital initiatives and new product efforts as possible catalysts for a recovery. McDonald's Trades at 19.15X P/E: Is This a Discounted Opportunity?
• Positive Sentiment: Promotional activity could support traffic: McDonald’s is bringing back popular menu items, launching a Texas-themed meal with collectible cups and promoting limited-time products. These campaigns may encourage visits and improve near-term sales, though their financial impact is unproven. McDonald's launches exclusive state-themed meal
• Neutral Sentiment: Brand visibility remains high: Coverage of McDonald’s breakfast offerings, Grimace appearances, collectible merchandise and Warren Buffett’s long-standing affinity for the brand reinforces consumer awareness but is unlikely to materially change earnings expectations. The best McDonald’s breakfast sandwich isn’t on the menu
• Negative Sentiment: U.S. consumer weakness is the main concern: Reports describe consumer-focused stocks, including McDonald’s, as signaling softer spending in middle America. Articles also highlight customers shifting to competing fast-food chains, increasing pressure on traffic and comparable sales. Wall Street worried about consumer stocks
• Negative Sentiment: Value positioning remains problematic: Coverage says McDonald’s $3 value offering has not fully delivered for customers or the company, raising concerns about affordability, franchisee economics and the effectiveness of discounting. Why you can't find McDonald's $3 value menu

Insider Activity

In other McDonald's news, insider Joseph Erlinger sold 5,252 shares of the business's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.26% of the company's stock.

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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