Asset One Wealth Management LLC bought a new stake in shares of McDonald’s Corporation (NYSE:MCD – Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 15,498 shares of the fast-food giant’s stock, valued at approximately $4,937,000. McDonald’s makes up approximately 0.7% of Asset One Wealth Management LLC’s holdings, making the stock its 28th largest holding.
A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Hamilton Point Investment Advisors LLC raised its stake in McDonald’s by 1.8% in the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant’s stock valued at $535,000 after buying an additional 31 shares during the last quarter. Encompass More Asset Management raised its stake in McDonald’s by 1.5% in the fourth quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock valued at $648,000 after buying an additional 32 shares during the last quarter. Richmond Investment Services LLC raised its stake in McDonald’s by 1.4% in the fourth quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock valued at $696,000 after buying an additional 32 shares during the last quarter. Physician Wealth Advisors Inc. raised its stake in McDonald’s by 1.6% in the fourth quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant’s stock valued at $642,000 after buying an additional 33 shares during the last quarter. Finally, CFO4Life Group LLC raised its stake in McDonald’s by 2.1% in the third quarter. CFO4Life Group LLC now owns 1,669 shares of the fast-food giant’s stock valued at $507,000 after buying an additional 34 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.
More McDonald’s News
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s is bringing back its fried apple pie after more than 30 years, a nostalgic, limited-time menu move that could support traffic and generate buzz with customers. AP News article
- Positive Sentiment: Other reports also note McDonald’s has been winning with value-oriented diners, which may help it hold up better than midtier restaurant chains as consumers trade down or seek familiar brands. Yahoo Finance article
- Neutral Sentiment: Coverage of McDonald’s reviving classic menu items, updating drive-thrus, and rebuilding older locations is mostly brand/operations news, with limited immediate impact on the stock. TheStreet article
- Neutral Sentiment: A Zacks note pointed out that MCD recently fell more than the broader market, but it did not identify a major new catalyst beyond the stock’s recent weakness. Zacks article
- Negative Sentiment: The biggest headwind is the market’s concern that restaurant spending is fragmenting, which could pressure midtier operators and keep sentiment cautious around consumer discretionary names like McDonald’s. Yahoo Finance article
McDonald’s Stock Down 1.3%
McDonald’s (NYSE:MCD – Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The firm had revenue of $6.52 billion during the quarter, compared to analysts’ expectations of $6.47 billion. During the same period last year, the business posted $2.67 earnings per share. The company’s revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities analysts anticipate that McDonald’s Corporation will post 12.93 EPS for the current fiscal year.
McDonald’s Announces Dividend
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were paid a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 2.6%. The ex-dividend date was Tuesday, June 2nd. McDonald’s’s dividend payout ratio (DPR) is presently 61.34%.
Wall Street Analyst Weigh In
A number of equities research analysts have commented on MCD shares. Royal Bank Of Canada decreased their price target on McDonald’s from $330.00 to $305.00 and set a “sector perform” rating for the company in a research note on Friday, May 8th. Wells Fargo & Company decreased their price target on McDonald’s from $355.00 to $320.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. KeyCorp decreased their price target on McDonald’s from $345.00 to $330.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. Cfra upgraded McDonald’s to a “buy” rating in a research note on Friday, May 8th. Finally, Barclays decreased their price target on McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $336.26.
Get Our Latest Stock Report on MCD
Insider Activity
In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 11,307 shares of company stock valued at $3,262,622. Company insiders own 0.26% of the company’s stock.
About McDonald’s
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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