Waverly Advisors LLC increased its position in shares of McDonald’s Corporation (NYSE:MCD – Free Report) by 39.4% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 169,676 shares of the fast-food giant’s stock after purchasing an additional 47,943 shares during the period. Waverly Advisors LLC’s holdings in McDonald’s were worth $45,865,000 at the end of the most recent reporting period.
Other large investors have also modified their holdings of the company. California State Teachers Retirement System boosted its stake in McDonald’s by 27,036.7% during the second quarter. California State Teachers Retirement System now owns 302,891,546 shares of the fast-food giant’s stock worth $81,874,614,000 after buying an additional 301,775,375 shares in the last quarter. Norges Bank acquired a new position in shares of McDonald’s in the 4th quarter valued at $2,890,438,000. Bank of New York Mellon Corp bought a new position in shares of McDonald’s during the 2nd quarter worth about $1,359,276,000. Diamant Asset Management Inc. lifted its holdings in shares of McDonald’s by 30,979.0% during the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock worth $806,917,000 after acquiring an additional 2,587,986 shares during the period. Finally, J. Stern & Co. LLP boosted its position in shares of McDonald’s by 9,867.5% during the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after acquiring an additional 2,515,515 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.
Analyst Ratings Changes
A number of research firms recently weighed in on MCD. Argus lowered their target price on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating on the stock in a research note on Wednesday, August 26th. Evercore set a $320.00 price objective on McDonald’s in a report on Thursday, July 23rd. Freedom Capital upgraded McDonald’s from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft increased their target price on McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Finally, JPMorgan Chase & Co. cut their target price on McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a research report on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat.com, McDonald’s currently has an average rating of “Moderate Buy” and an average price target of $321.35.
Key Stories Impacting McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s is reportedly slowing its restaurant expansion to protect returns as construction costs rise and consumers remain price-sensitive. A more disciplined development pace could improve new-restaurant economics and reduce capital risk. Can MCD’s Slower Expansion Pace Help Protect New-Restaurant Returns?
- Positive Sentiment: A Milwaukee franchisee says sales at his seven locations are growing at double-digit rates, attributing the gains to local execution, customer engagement and operational initiatives. The example suggests individual operators can still outperform despite broader U.S. sales softness. McDonald’s franchisee sales are up
- Neutral Sentiment: McDonald’s is rethinking its strategy as an unexpected customer group increasingly buys Happy Meals, potentially broadening the product’s appeal beyond children. The report signals a marketing opportunity but provides no immediate financial forecast. McDonald’s CEO Says an Unlikely Group Is Turning to Happy Meals
- Neutral Sentiment: The company plans a first-of-its-kind U.K. location where customers can make their own burgers. The experiential concept could generate publicity and engagement, but its impact on companywide results is likely limited initially. McDonald’s reveals new UK store
- Neutral Sentiment: Market coverage continues to describe McDonald’s as a defensive stock ahead of inflation data and the Federal Reserve’s rate decision, which may support investor interest during periods of volatility. 5 Defensive Stocks to Watch
- Negative Sentiment: Analysts note that McDonald’s U.S. sales have slowed because of execution issues, even as other major franchised restaurant companies reported stronger results. This is the clearest fundamental pressure on MCD and helps explain its weaker share performance. Why Franchise Models Are Winning the Restaurant Stock Divide
- Negative Sentiment: Reports of customers criticizing a children’s area that lacks toys or playground equipment could reinforce concerns about an uneven in-store experience, though the issue appears localized. McDonald’s also deleted a viral post involving a controversial intern claim, creating a minor reputational and social-media risk. McDonald’s guests criticize kids corner McDonald’s deletes viral post
McDonald’s Trading Down 0.1%
Shares of MCD traded down $0.16 during trading hours on Tuesday, hitting $255.53. 4,196,825 shares of the stock traded hands, compared to its average volume of 3,941,729. The business has a fifty day moving average of $269.13 and a 200-day moving average of $288.10. The firm has a market capitalization of $180.82 billion, a PE ratio of 20.76, a price-to-earnings-growth ratio of 2.76 and a beta of 0.41. McDonald’s Corporation has a 1-year low of $254.28 and a 1-year 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 for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The firm had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. During the same period in the previous year, the business posted $3.19 EPS. The company’s quarterly revenue was up 3.7% compared to the same quarter last year. As a group, equities research analysts expect that McDonald’s Corporation will post 12.87 earnings per share for the current fiscal year.
McDonald’s Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.9%. McDonald’s’s payout ratio is 60.44%.
Insider Buying and Selling
In other McDonald’s news, insider Joseph Erlinger sold 5,252 shares of the stock in a transaction dated 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 approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate 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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