D.A. Davidson & CO. lowered its stake in McDonald’s Corporation (NYSE:MCD – Free Report) by 2.5% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 140,424 shares of the fast-food giant’s stock after selling 3,600 shares during the period. D.A. Davidson & CO.’s holdings in McDonald’s were worth $43,642,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also recently modified their holdings of the stock. Your Advocates Ltd. LLP bought a new position in shares of McDonald’s in the 4th quarter valued at $27,000. Park Place Capital Corp grew its position in McDonald’s by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock worth $28,000 after acquiring an additional 45 shares during the last quarter. IFC & Insurance Marketing Inc. acquired a new position in McDonald’s in the 4th quarter worth about $29,000. Abound Financial LLC acquired a new position in McDonald’s in the 4th quarter worth about $30,000. Finally, Purpose Unlimited Inc. bought a new position in McDonald’s in the fourth quarter valued at about $31,000. Institutional investors own 70.29% of the company’s stock.
Insider Buying and Selling at McDonald’s
In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 8,681 shares of company stock valued at $2,456,440. 0.26% of the stock is currently owned by corporate insiders.
McDonald’s Trading Down 1.5%
McDonald’s (NYSE:MCD – Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts’ consensus estimates 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 company had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same period in the previous year, the firm earned $2.67 earnings per share. The firm’s quarterly revenue was up 9.4% on a year-over-year basis. Sell-side analysts forecast that McDonald’s Corporation will post 12.9 earnings per share for the current year.
McDonald’s Dividend Announcement
The company also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were given a $1.86 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. McDonald’s’s payout ratio is 61.34%.
Trending Headlines about McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s is rolling out several limited-time menu items, including new chicken products and a Caesar sauce, which could boost customer traffic and add to sales momentum. McDonald’s Is Releasing 4 New Menu Items for a Limited Time
- Positive Sentiment: The new Caesar sauce and related chicken sandwich/snack wrap offerings signal continued menu innovation, which investors may view as a way to defend market share in a mixed restaurant environment. McDonald’s upcoming Caesar sauce brings a new sandwich and snack wrap to the summer menu
- Positive Sentiment: The BT21 Happy Meal promotion adds a collectible, marketing-driven sales event that could attract families and drive near-term visits. How Long Will the BT21 Happy Meal Be Available at McDonald’s?
- Neutral Sentiment: Some coverage focuses on the new PlayPlace design and toy promotions, which are good for brand buzz but are unlikely to materially change fundamentals on their own. People Are Talking About McDonald’s New “See-Through” PlayPlace Design
- Neutral Sentiment: Analyst and valuation-related articles suggest MCD may look attractive on a long-term basis, but they do not appear to be major catalysts by themselves. MCD at $268, Starbucks at $106: Buy, Sell or Hold?
- Negative Sentiment: Citigroup trimmed its price target on McDonald’s, which may temper enthusiasm even though it kept a buy rating. Benzinga report on Citigroup price target cut
Analyst Ratings Changes
A number of brokerages have recently commented on MCD. Erste Group Bank lowered McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Rothschild & Co Redburn upgraded shares of McDonald’s from a “sell” rating to a “neutral” rating and raised their price objective for the company from $260.00 to $306.00 in a report on Thursday, April 23rd. Weiss Ratings downgraded shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Citigroup reduced their target price on shares of McDonald’s from $375.00 to $335.00 and set a “buy” rating on the stock in a report on Wednesday. Finally, Sanford C. Bernstein restated a “market perform” rating on shares of McDonald’s in a research report on Monday, June 22nd. Fifteen equities research analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $336.35.
McDonald’s 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.
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