Wellington Management Group LLP Cuts Stake in McDonald's Corporation $MCD

Key Points

• Wellington Management Group LLP reduced its stake in McDonald's Corporation by 15.4%, now holding 11,851,904 shares after selling 2,164,666 shares in the first quarter.
• McDonald's announced a quarterly dividend of $1.77 per share, which will be paid on September 16th, representing an annualized dividend of $7.08 and a yield of 2.3%.
• Analysts have provided varied ratings on McDonald's stock, with a consensus rating of "Hold" and an average target price of $326.87.

Wellington Management Group LLP reduced its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 15.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 11,851,904 shares of the fast-food giant's stock after selling 2,164,666 shares during the period. McDonald's makes up 0.7% of Wellington Management Group LLP's portfolio, making the stock its 23rd biggest position. Wellington Management Group LLP owned approximately 1.66% of McDonald's worth $3,702,179,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently modified their holdings of the company. Nuveen LLC bought a new position in shares of McDonald's during the first quarter valued at $1,324,961,000. GAMMA Investing LLC lifted its holdings in shares of McDonald's by 39,039.7% during the first quarter. GAMMA Investing LLC now owns 3,497,919 shares of the fast-food giant's stock valued at $1,092,645,000 after purchasing an additional 3,488,982 shares in the last quarter. Castlekeep Investment Advisors LLC bought a new position in shares of McDonald's during the fourth quarter valued at $350,935,000. Northern Trust Corp lifted its holdings in shares of McDonald's by 11.2% during the fourth quarter. Northern Trust Corp now owns 8,867,193 shares of the fast-food giant's stock valued at $2,570,511,000 after purchasing an additional 895,896 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its holdings in shares of McDonald's by 19.6% during the first quarter. Goldman Sachs Group Inc. now owns 4,982,825 shares of the fast-food giant's stock valued at $1,556,485,000 after purchasing an additional 815,768 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, EVP Desiree Ralls-Morrison sold 2,487 shares of the firm's stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total value of $770,970.00. Following the completion of the sale, the executive vice president directly owned 8,754 shares of the company's stock, valued at $2,713,740. This trade represents a 22.12% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Joseph M. Erlinger sold 939 shares of the firm's stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total value of $281,221.11. Following the completion of the sale, the insider directly owned 9,283 shares of the company's stock, valued at $2,780,165.67. The trade was a 9.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 7,280 shares of company stock valued at $2,215,178 in the last ninety days. Insiders own 0.25% of the company's stock.

McDonald's Trading Down 0.1%

NYSE:MCD opened at $308.76 on Monday. McDonald's Corporation has a 12-month low of $274.70 and a 12-month high of $326.32. The stock has a 50-day moving average price of $298.06 and a 200 day moving average price of $305.17. The stock has a market capitalization of $220.33 billion, a P/E ratio of 26.46, a P/E/G ratio of 3.15 and a beta of 0.52.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share for the quarter, beating the consensus estimate of $3.15 by $0.04. The business had revenue of $6.84 billion during the quarter, compared to analysts' expectations of $6.68 billion. McDonald's had a negative return on equity of 225.52% and a net margin of 32.21%. The firm's revenue for the quarter was up 5.4% compared to the same quarter last year. During the same quarter last year, the business posted $2.97 EPS. On average, research analysts predict that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd will be paid a $1.77 dividend. This represents a $7.08 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Tuesday, September 2nd. McDonald's's dividend payout ratio (DPR) is presently 60.67%.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on MCD shares. KeyCorp reissued an "overweight" rating and issued a $335.00 target price (up previously from $325.00) on shares of McDonald's in a report on Thursday, August 7th. Citigroup increased their target price on McDonald's from $364.00 to $365.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. Piper Sandler increased their target price on McDonald's from $314.00 to $325.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. BMO Capital Markets reissued an "outperform" rating and issued a $350.00 target price (up previously from $345.00) on shares of McDonald's in a report on Thursday, August 7th. Finally, The Goldman Sachs Group raised McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 target price on the stock in a report on Thursday, July 10th. Two equities research analysts have rated the stock with a sell rating, thirteen have given a hold rating and thirteen have given a buy rating to the company's stock. Based on data from MarketBeat.com, McDonald's currently has a consensus rating of "Hold" and an average target price of $326.87.

McDonald's Company Profile

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.