Bank of America Corp DE cut its position in McDonald’s Corporation (NYSE:MCD – Free Report) by 2.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 12,156,558 shares of the fast-food giant’s stock after selling 263,220 shares during the quarter. Bank of America Corp DE owned approximately 1.71% of McDonald’s worth $3,778,137,000 at the end of the most recent reporting period.
Other institutional investors have also recently bought and sold shares of the company. Your Advocates Ltd. LLP bought a new position in shares of McDonald’s in the fourth quarter worth about $27,000. IFC & Insurance Marketing Inc. bought a new stake in McDonald’s during the 4th quarter valued at approximately $29,000. Abound Financial LLC bought a new stake in McDonald’s during the 4th quarter valued at approximately $30,000. Purpose Unlimited Inc. acquired a new stake in McDonald’s in the 4th quarter valued at approximately $31,000. Finally, DecisionPoint Financial LLC grew its holdings in McDonald’s by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock valued at $31,000 after buying an additional 97 shares during the last quarter. Institutional investors own 70.29% of the company’s stock.
Insider Activity
In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’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 value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction that occurred on Wednesday, June 10th. The stock was 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 $2,198,930.88. This trade represents a 40.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 8,348 shares of company stock valued at $2,355,634 in the last three months. Company insiders own 0.26% of the company’s stock.
McDonald’s Trading Down 0.6%
McDonald’s (NYSE:MCD – Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same quarter in the previous year, the company earned $2.67 earnings per share. The business’s revenue was up 9.4% compared to the same quarter last year. On average, research analysts anticipate that McDonald’s Corporation will post 12.86 earnings per share for the current fiscal year.
McDonald’s Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald’s’s payout ratio is presently 61.34%.
More McDonald’s News
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s continues to offer an attractive income profile after affirming its quarterly dividend of $1.86 per share, payable Sept. 16 to shareholders of record Sept. 1. The company has increased its dividend for approximately 50 consecutive years. McDonald’s Faces Digital And Sales Concerns, Is The Stock Fully Valued?
- Positive Sentiment: Despite the recent weakness, Wall Street’s average price targets reportedly remain well above the current market price, suggesting potential upside if sales stabilize and the company executes on its strategy. McDonald’s, Oracle, and Uber Are Near 52-Week Lows
- Neutral Sentiment: McDonald’s is scheduled to report earnings on Aug. 4. Analysts expect full-year EPS of about $12.86, while recent coverage suggests earnings growth remains possible but does not identify a strong setup for a near-term earnings beat. McDonald’s Earnings Expected to Grow
- Negative Sentiment: RBC expects McDonald’s same-store-sales growth to slow in the second and third quarters, raising concerns about consumer demand and the company’s ability to sustain traffic and pricing momentum. McDonald’s Same-Store-Sales Growth Seen Slowing
- Negative Sentiment: Erste Group Bank trimmed its FY2026 EPS forecast to $12.92 from $12.98 and its FY2027 estimate to $14.15 from $14.19, maintaining a “Hold” rating. UBS has also issued a pessimistic forecast, adding to cautious sentiment. UBS Group Issues Pessimistic Forecast for McDonald’s
- Negative Sentiment: Rising beef prices are weighing on investor sentiment and could pressure restaurant margins. Additional concerns include digital-sales execution and whether McDonald’s valuation is justified given its weaker recent performance. McDonald’s Fell as Rising Beef Prices Weighed on Sentiment
Wall Street Analysts Forecast Growth
MCD has been the subject of a number of research analyst reports. Morgan Stanley cut their price target on McDonald’s from $331.00 to $322.00 and set an “equal weight” rating for the company in a report on Wednesday, July 15th. Barclays dropped their target price on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. BTIG Research cut their target price on shares of McDonald’s from $370.00 to $350.00 and set a “buy” rating for the company in a research note on Friday, July 24th. UBS Group reduced their price target on shares of McDonald’s from $365.00 to $340.00 and set a “buy” rating for the company in a report on Monday. Finally, Weiss Ratings lowered shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $333.32.
Get Our Latest Analysis on MCD
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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