Raiffeisen Bank International AG lifted its stake in shares of McDonald’s Corporation (NYSE:MCD – Free Report) by 17.2% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 18,458 shares of the fast-food giant’s stock after acquiring an additional 2,705 shares during the period. Raiffeisen Bank International AG’s holdings in McDonald’s were worth $4,934,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in MCD. Norges Bank acquired a new stake in shares of McDonald’s during the 4th quarter worth about $2,890,438,000. Bank of New York Mellon Corp acquired a new position in shares of McDonald’s in the second quarter valued at approximately $1,359,276,000. Diamant Asset Management Inc. lifted its stake in shares of McDonald’s by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock valued at $806,917,000 after buying an additional 2,587,986 shares during the period. J. Stern & Co. LLP lifted its stake in shares of McDonald’s by 9,867.5% during the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after buying an additional 2,515,515 shares during the period. Finally, Viking Global Investors LP boosted its position in McDonald’s by 171.7% during the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock worth $913,157,000 after acquiring an additional 1,974,998 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.
Key McDonald’s News
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: Valuation may attract contrarian buyers: McDonald’s is trading at roughly 19.15 times earnings, below the restaurant industry’s average multiple. Analysts point to global expansion, digital initiatives and new product efforts as possible catalysts for a recovery. McDonald’s Trades at 19.15X P/E: Is This a Discounted Opportunity?
- Positive Sentiment: Promotional activity could support traffic: McDonald’s is bringing back popular menu items, launching a Texas-themed meal with collectible cups and promoting limited-time products. These campaigns may encourage visits and improve near-term sales, though their financial impact is unproven. McDonald’s launches exclusive state-themed meal
- Neutral Sentiment: Brand visibility remains high: Coverage of McDonald’s breakfast offerings, Grimace appearances, collectible merchandise and Warren Buffett’s long-standing affinity for the brand reinforces consumer awareness but is unlikely to materially change earnings expectations. The best McDonald’s breakfast sandwich isn’t on the menu
- Negative Sentiment: U.S. consumer weakness is the main concern: Reports describe consumer-focused stocks, including McDonald’s, as signaling softer spending in middle America. Articles also highlight customers shifting to competing fast-food chains, increasing pressure on traffic and comparable sales. Wall Street worried about consumer stocks
- Negative Sentiment: Value positioning remains problematic: Coverage says McDonald’s $3 value offering has not fully delivered for customers or the company, raising concerns about affordability, franchisee economics and the effectiveness of discounting. Why you can’t find McDonald’s $3 value menu
Wall Street Analyst Weigh In
Several analysts have commented on the stock. Wells Fargo & Company lowered their target price on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a research note on Thursday, July 16th. Barclays lowered 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 dropped their target price on McDonald’s from $322.00 to $319.00 and set an “equal weight” rating for the company in a research note on Wednesday, August 5th. Guggenheim reduced their target price on McDonald’s from $320.00 to $290.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 5th. Finally, Tigress Financial raised their price target on McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, McDonald’s currently has a consensus rating of “Moderate Buy” and a consensus price target of $321.35.
Check Out Our Latest Analysis on McDonald’s
Insider Transactions at McDonald’s
In other McDonald’s news, insider Joseph Erlinger sold 5,252 shares of the business’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the sale, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.26% of the company’s stock.
McDonald’s Stock Down 1.5%
NYSE:MCD opened at $255.69 on Friday. The company has a market cap of $180.94 billion, a P/E ratio of 20.77, a P/E/G ratio of 2.80 and a beta of 0.41. The firm’s 50 day moving average is $269.67 and its two-hundred day moving average is $289.39. McDonald’s Corporation has a fifty-two week low of $255.49 and a fifty-two week high of $341.75.
McDonald’s (NYSE:MCD – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The business’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same period in the previous year, the company earned $3.19 EPS. Research analysts forecast that McDonald’s Corporation will post 12.87 earnings per share for the current fiscal year.
McDonald’s Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be issued a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.9%. McDonald’s’s dividend payout ratio (DPR) is presently 60.44%.
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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