Vista Investment Partners LLC Buys 6,314 Shares of McDonald's Corporation $MCD

Key Points

• Vista Investment Partners increased its McDonald’s position by 68.9% in the third quarter, purchasing 6,314 additional shares for a total holding of 15,484 shares valued at approximately $3.6 million. Institutional investors collectively own 70.29% of MCD.
• McDonald’s recently reported quarterly EPS of $3.38, exceeding estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion but fell slightly short of expectations.
• The company raised its quarterly dividend to $1.93 per share, equivalent to an annualized $7.72 payout and a 3.3% yield. Analysts maintain a “Moderate Buy” consensus, with an average price target of $295.94 despite several recent target reductions.

Vista Investment Partners LLC raised its position in McDonald's Corporation (NYSE:MCD - Free Report) by 68.9% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 15,484 shares of the fast-food giant's stock after purchasing an additional 6,314 shares during the period. Vista Investment Partners LLC's holdings in McDonald's were worth $3,576,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. Ascentis Wealth Management LLC increased its holdings in McDonald's by 4,008.8% in the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant's stock valued at $22,768,000 after buying an additional 82,180 shares during the last quarter. Ridgewood Investments LLC bought a new position in McDonald's during the 3rd quarter worth approximately $1,026,000. Borer Denton & Associates Inc. grew its position in shares of McDonald's by 16.9% in the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant's stock worth $3,746,000 after acquiring an additional 2,000 shares in the last quarter. HighTower Advisors LLC grew its position in shares of McDonald's by 7.1% in the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant's stock worth $397,822,000 after acquiring an additional 97,060 shares in the last quarter. Finally, Peterson Wealth Services increased its holdings in shares of McDonald's by 3,294.5% in the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant's stock valued at $3,600,000 after acquiring an additional 11,432 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald's Trading Up 2.7%

MCD traded up $6.13 during trading hours on Thursday, hitting $237.01. The company's stock had a trading volume of 4,298,396 shares, compared to its average volume of 4,184,619. The company has a 50-day simple moving average of $256.66 and a 200 day simple moving average of $275.31. The firm has a market capitalization of $167.72 billion, a PE ratio of 19.21, a PEG ratio of 2.60 and a beta of 0.44. McDonald's Corporation has a fifty-two week low of $229.20 and a fifty-two week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The company had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.13 billion. During the same quarter in the prior year, the business posted $3.19 earnings per share. The company's revenue for the quarter was up 3.7% compared to the same quarter last year. Research analysts expect that McDonald's Corporation will post 12.85 earnings per share for the current fiscal year.

McDonald's Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be given a dividend of $1.93 per share. This is a positive change from McDonald's's previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.3%. McDonald's's payout ratio is presently 60.44%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on MCD. Gordon Haskett reduced their price objective on McDonald's from $315.00 to $285.00 and set a "buy" rating on the stock in a research note on Thursday, September 24th. Rothschild & Co Redburn lowered their target price on shares of McDonald's from $306.00 to $285.00 in a research note on Wednesday, August 26th. Mizuho dropped their target price on shares of McDonald's from $300.00 to $290.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. Weiss Ratings downgraded shares of McDonald's from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, October 2nd. Finally, Guggenheim lowered their price objective on shares of McDonald's from $290.00 to $250.00 and set a "neutral" rating for the company in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $295.94.

Trending Headlines about McDonald's

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

• Positive Sentiment: Some analysts view McDonald’s compressed valuation, strong franchise-driven margins and cash generation as an opportunity. One recent analysis upgraded the shares, arguing that same-store sales may be an overstated measure of the company’s underlying quality. McDonald's: Same-Store Sales Are An Overrated Metric
• Positive Sentiment: The company’s higher dividend and appointment of a new U.S. president signal continued confidence in shareholder returns and an effort to address softer domestic traffic. What Is McDonald's Signaling With Its Faster Dividend And New US Chief?
• Positive Sentiment: The planned $8.5 billion modernization program could improve restaurant experience, speed and franchise economics over time, potentially supporting longer-term sales growth. McDonald’s Wants Its Franchisees to Modernize
• Neutral Sentiment: McDonald’s was included in coverage of consumer-stock opportunities and appeared to benefit from broader restaurant-sector interest, including takeover speculation involving Chipotle; however, that speculation does not directly improve MCD’s fundamentals. Restaurant Stocks and Takeover Talk
• Negative Sentiment: Sanford C. Bernstein cut its price target from $295 to $250 and maintained a “market perform” rating, highlighting limited near-term upside and uncertainty over the growth trajectory.
• Negative Sentiment: A proposed antitrust class action alleges McDonald’s AI-assisted pricing tool enables franchisees to share nonpublic data and coordinate menu prices. McDonald’s denies the allegations and says the system only recommends prices and cannot set them directly. McDonald’s sued over alleged AI-powered menu price-fixing
• Negative Sentiment: Franchisees are reportedly resisting remodel costs of at least $800,000 per restaurant, raising concerns about execution, franchisee profitability and potential pressure on future investment. Meanwhile, discount campaigns such as $5 meals and $6 combos have reportedly failed to consistently bring customers back. McDonald's Franchisees Push Back on Remodeling Costs

About McDonald's

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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