HighTower Advisors LLC raised its stake in McDonald’s Corporation (NYSE:MCD – Free Report) by 7.1% during the 2nd quarter, Holdings Channel.com reports. The firm owned 1,471,725 shares of the fast-food giant’s stock after buying an additional 97,060 shares during the quarter. HighTower Advisors LLC’s holdings in McDonald’s were worth $397,822,000 as of its most recent SEC filing.
Several other hedge funds have also modified their holdings of the company. IFC & Insurance Marketing Inc. bought a new stake in shares of McDonald’s in the 4th quarter valued at about $29,000. Abound Financial LLC bought a new position in shares of McDonald’s during the 4th quarter worth approximately $30,000. Purpose Unlimited Inc. bought a new position in shares of McDonald’s during the 4th quarter worth approximately $31,000. Entrust Financial LLC purchased a new stake in McDonald’s during the fourth quarter valued at approximately $31,000. Finally, GKV Capital Management Co. Inc. purchased a new stake in McDonald’s during the first quarter valued at approximately $33,000. 70.29% of the stock is owned by hedge funds and other institutional investors.
McDonald’s Price Performance
Shares of McDonald’s stock opened at $255.69 on Monday. The company has a 50 day moving average price of $269.67 and a 200 day moving average price of $289.12. The firm has a market capitalization of $180.94 billion, a P/E ratio of 20.77, a PEG ratio of 2.76 and a beta of 0.41. McDonald’s Corporation has a 52 week low of $255.49 and a 52 week high of $341.75.
McDonald’s Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s payout ratio is presently 60.44%.
Key Headlines Impacting McDonald’s
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
MCD has been the subject of several recent analyst reports. Piper Sandler set a $286.00 target price on shares of McDonald’s in a research note on Tuesday, August 4th. Robert W. Baird raised McDonald’s to a “hold” rating in a research report on Monday, August 24th. Royal Bank Of Canada decreased their price objective on McDonald’s from $305.00 to $295.00 and set a “sector perform” rating for the company in a report on Wednesday, August 5th. Sanford C. Bernstein reissued a “market perform” rating and issued a $295.00 price objective on shares of McDonald’s in a research report on Wednesday, August 5th. Finally, Evercore set a $320.00 target price on McDonald’s in a research note on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, McDonald’s has an average rating of “Moderate Buy” and an average price target of $321.35.
Check Out Our Latest Research Report on MCD
Insider Activity at McDonald’s
In related news, insider Joseph Erlinger sold 5,252 shares of the company’s stock in a transaction 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 directly owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.26% of the company’s stock.
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.
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