Resona Asset Management Co. Ltd. grew its position in McDonald’s Corporation (NYSE:MCD – Free Report) by 1.9% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 259,969 shares of the fast-food giant’s stock after purchasing an additional 4,828 shares during the period. Resona Asset Management Co. Ltd.’s holdings in McDonald’s were worth $80,683,000 as of its most recent SEC filing.
Other large investors also recently made changes to their positions in the company. Your Advocates Ltd. LLP acquired a new position in shares of McDonald’s during the fourth quarter worth approximately $27,000. Park Place Capital Corp increased its position in McDonald’s by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after acquiring an additional 45 shares during the period. IFC & Insurance Marketing Inc. acquired a new stake in McDonald’s in the 4th quarter valued at approximately $29,000. Abound Financial LLC bought a new stake in McDonald’s during the 4th quarter valued at $30,000. Finally, Purpose Unlimited Inc. bought a new stake in McDonald’s during the 4th quarter valued at $31,000. Institutional investors and hedge funds own 70.29% of the company’s stock.
Analysts Set New Price Targets
Several research firms have recently issued reports on MCD. BTIG Research reissued a “buy” rating and issued a $370.00 price target on shares of McDonald’s in a research note on Thursday, May 7th. Barclays cut their price objective on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Cfra raised shares of McDonald’s to a “buy” rating in a report on Friday, May 8th. Robert W. Baird set a $305.00 target price on shares of McDonald’s in a research report on Thursday, May 7th. Finally, Evercore set a $350.00 target price on shares of McDonald’s in a research note on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $335.70.
Insider Transactions at McDonald’s
In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction dated 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 transaction, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 11,307 shares of company stock worth $3,262,622. 0.26% of the stock is owned by corporate insiders.
McDonald’s Stock Performance
Shares of NYSE MCD opened at $278.44 on Thursday. The stock has a fifty day moving average price of $279.20 and a two-hundred day moving average price of $302.32. The firm has a market cap of $197.83 billion, a P/E ratio of 22.95, a PEG ratio of 2.81 and a beta of 0.41. McDonald’s Corporation has a 1 year low of $264.53 and a 1 year high of $341.75.
McDonald’s (NYSE:MCD – Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating the consensus estimate 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 analysts’ expectations of $6.47 billion. During the same period last year, the firm earned $2.67 EPS. The firm’s revenue for the quarter was up 9.4% on a year-over-year basis. On average, research analysts predict that McDonald’s Corporation will post 12.93 earnings per share for the current fiscal year.
McDonald’s Dividend Announcement
The company also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were issued a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald’s’s payout ratio is presently 61.34%.
Key Headlines Impacting McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s is leaning on promotions and pop-culture tie-ins to drive traffic, including a new BT21 Happy Meal collaboration and related Pokémon-style merchandising buzz that could support near-term sales. McDonald’s Reveals More On BT21 X Happy Meal Collaboration
- Positive Sentiment: Local and regional promotions, such as free fries for National French Fry Day and the return of limited-time menu items, may help create short-term customer traffic and engagement. McDonald’s giving away free medium fries in Corpus Christi and Victoria for National French Fry Day
- Neutral Sentiment: Coverage focused on McDonald’s franchise economics and brand marketing keeps the company in the spotlight, but these stories do not materially change the investment thesis by themselves. McDonald’s Franchise Owners Make A Surprising Amount Of Money
- Neutral Sentiment: Analyst and comparison pieces continue to frame McDonald’s as a defensive, lower-stress consumer stock, which supports the long-term case but does not appear to be a near-term catalyst. Buy these quality, low-stress stocks for the summer, says Jefferies
- Negative Sentiment: Several articles highlighted complaints that McDonald’s food no longer tastes as good as customers remember, plus reports that some loyal customers are choosing other fast-food chains instead, which can pressure traffic expectations. The McDonald’s Foods Customers Say No Longer Taste Like They Remember
- Negative Sentiment: Competitive headlines also showed rivals taking aim at McDonald’s with new menu offerings, underscoring ongoing pressure in the fast-food market. McDonald’s rival takes not-so-subtle swipe at the fast food giant with new chicken sandwiches
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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