Rakuten Investment Management Inc. boosted its stake in McDonald’s Corporation (NYSE:MCD – Free Report) by 19,677.4% in the fourth quarter, Holdings Channel reports. The firm owned 93,745 shares of the fast-food giant’s stock after purchasing an additional 93,271 shares during the quarter. Rakuten Investment Management Inc.’s holdings in McDonald’s were worth $28,923,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Abound Financial LLC acquired a new position in McDonald’s in the fourth quarter valued at about $30,000. L2 Asset Management LLC raised its stake in McDonald’s by 6.1% in the fourth quarter. L2 Asset Management LLC now owns 3,637 shares of the fast-food giant’s stock valued at $1,112,000 after purchasing an additional 209 shares in the last quarter. Bluedoor Private Wealth LLC acquired a new position in McDonald’s in the fourth quarter valued at about $1,432,000. 71 West Capital Partners acquired a new position in McDonald’s in the fourth quarter valued at about $884,000. Finally, Capital Financial Group Inc. Co. ADV acquired a new position in McDonald’s in the fourth quarter valued at about $459,000. Institutional investors and hedge funds own 70.29% of the company’s stock.
Key Headlines Impacting McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s is expanding its beverage lineup with custom sodas, refreshers, and Red Bull-based drinks, a move that could increase average ticket size and give the company a new growth lever beyond its core Coca-Cola relationship. McDonald’s Red Bull Drinks Test Brand Perception And Valuation Gap
- Positive Sentiment: McDonald’s is bringing back fan-favorite and nostalgic menu items, which may boost customer interest and store traffic by tapping into demand for limited-time offerings. McDonald’s is bringing back a fan-favorite menu item after more than 30 years
- Positive Sentiment: Coverage around McDonald’s major drive-thru change suggests the company is working on operational improvements that could make ordering faster and more convenient for customers. McDonald’s is making a major change to drive-thrus: What’s changing?
- Positive Sentiment: Analyst-focused commentary continues to frame McDonald’s as a relatively well-regarded large-cap stock, supporting the view that investors still see defensive appeal in the shares. Is It Worth Investing in McDonald’s (MCD) Based on Wall Street’s Bullish Views?
- Neutral Sentiment: Stories about “coolest” locations, birthday freebies, and 1980s nostalgia are mostly brand-image pieces, with limited near-term impact on earnings or the stock. People Think This Are The Coolest 16 McDonald’s Locations In America
- Neutral Sentiment: Coverage on McDonald’s and Coke having “issues” highlights a long-running supplier relationship question, but there is no clear sign of a material disruption yet. The 70-Year Marriage Between McDonald’s and Coke Has Some Issues
- Negative Sentiment: Questions about whether McDonald’s is adding a $1 fee to drive-thru orders could create customer backlash if the rumor proves true, potentially weighing on sentiment. Is McDonald’s adding a $1 fee to drive-thru orders? Customers want answers
- Negative Sentiment: Reports that McCrispy Strips are being revamped after customer criticism suggest some menu execution issues, which could slightly pressure sentiment around product quality. McDonald’s to Revamp McCrispy Strips After Customer Criticism
Insider Activity
Wall Street Analyst Weigh In
MCD has been the subject of several recent analyst reports. Barclays dropped their price objective on McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a research report on Friday, May 8th. Morgan Stanley set a $331.00 price objective on McDonald’s in a research report on Friday, May 8th. TD Cowen restated a “hold” rating on shares of McDonald’s in a research report on Friday. Evercore set a $350.00 price objective on McDonald’s in a research report on Friday, May 8th. Finally, KeyCorp dropped their price objective on McDonald’s from $345.00 to $330.00 and set an “overweight” rating for the company in a research report on Friday, May 8th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $336.26.
McDonald’s Trading Up 0.5%
Shares of MCD stock opened at $286.35 on Tuesday. The stock has a market cap of $203.45 billion, a price-to-earnings ratio of 23.61, a PEG ratio of 2.84 and a beta of 0.41. The stock has a 50-day moving average of $288.96 and a 200-day moving average of $306.59. McDonald’s Corporation has a 1-year low of $271.85 and a 1-year high of $341.75.
McDonald’s (NYSE:MCD – Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating the consensus estimate of $2.74 by $0.09. The company had revenue of $6.52 billion during 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 quarter in the prior year, the firm posted $2.67 earnings per share. Sell-side analysts forecast that McDonald’s Corporation will post 12.93 earnings per share for the current year.
McDonald’s Dividend Announcement
The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd will be paid a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.6%. McDonald’s’s dividend payout ratio is presently 61.34%.
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.
Featured Articles
- Five stocks we like better than McDonald’s
- Can D-Wave Hold Its Own Against 2 Fast-Growing Rivals?
- 3 AI Stocks With Moats That Could Outlast Summer Volatility
- These 5 Companies Just Made a Massive Bet on Themselves
- 5 Stocks Built to Thrive in a Higher-for-Longer Economy
Want to see what other hedge funds are holding MCD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McDonald’s Corporation (NYSE:MCD – Free Report).
Receive News & Ratings for McDonald's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for McDonald's and related companies with MarketBeat.com's FREE daily email newsletter.
