Welch Group LLC Buys 9,677 Shares of McDonald's Corporation $MCD

Key Points

• Welch Group increased its McDonald’s stake by 4.3% in the third quarter, buying 9,677 shares to reach 234,482 shares valued at approximately $54.2 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s reported quarterly earnings of $3.38 per share, beating estimates of $3.32, while revenue rose 3.7% year over year to $7.10 billion, slightly below expectations.
• The company raised its quarterly dividend to $1.93 per share, or $7.72 annualized, representing a 3.0% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $294.73.

Welch Group LLC increased its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 4.3% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 234,482 shares of the fast-food giant's stock after buying an additional 9,677 shares during the quarter. McDonald's comprises approximately 1.8% of Welch Group LLC's holdings, making the stock its 27th largest holding. Welch Group LLC's holdings in McDonald's were worth $54,151,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Ascentis Wealth Management LLC boosted its position in shares of McDonald's by 4,008.8% in the 2nd quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant's stock worth $22,768,000 after purchasing an additional 82,180 shares in the last quarter. Ridgewood Investments LLC purchased a new position in shares of McDonald's during the 3rd quarter valued at approximately $1,026,000. Borer Denton & Associates Inc. raised its position in shares of McDonald's by 16.9% in the second 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 during the period. HighTower Advisors LLC raised its holdings in 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 purchasing an additional 97,060 shares during the period. Finally, Viking Fund Management LLC raised its holdings in McDonald's by 60.0% in the 3rd quarter. Viking Fund Management LLC now owns 40,000 shares of the fast-food giant's stock worth $9,238,000 after purchasing an additional 15,000 shares during the period. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald's Trading Up 0.0%

MCD opened at $258.15 on Monday. McDonald's Corporation has a twelve month low of $229.20 and a twelve month high of $341.75. The firm has a market capitalization of $182.68 billion, a PE ratio of 20.97, a PEG ratio of 2.95 and a beta of 0.42. The firm's 50-day moving average price is $248.26 and its 200 day moving average price is $283.44.

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 for the quarter, topping the consensus estimate of $3.32 by $0.06. The business had revenue of $7.10 billion for the quarter, compared to analysts' expectations of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%. The business's revenue for the quarter was up 3.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.19 EPS. As a group, analysts predict that McDonald's Corporation will post 12.83 earnings per share for the current fiscal year.

McDonald's Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a $1.93 dividend. This represents a $7.72 annualized dividend and a yield of 3.0%. The ex-dividend date is Tuesday, December 1st. This is an increase from McDonald's's previous quarterly dividend of $1.86. McDonald's's dividend payout ratio (DPR) is currently 60.44%.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on MCD. Citigroup cut their price objective on McDonald's from $305.00 to $295.00 and set a "buy" rating for the company in a research report on Tuesday, October 20th. Freedom Capital raised shares of McDonald's from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 5th. Sanford C. Bernstein cut their price target on shares of McDonald's from $295.00 to $250.00 and set a "market perform" rating for the company in a report on Thursday, October 8th. BTIG Research reaffirmed a "buy" rating and set a $295.00 price objective on shares of McDonald's in a report on Monday, October 26th. Finally, Tigress Financial increased their price objective 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. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $294.73.

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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