Danica Pension Livsforsikringsaktieselskab purchased a new stake in McDonald’s Corporation (NYSE:MCD – Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 102,941 shares of the fast-food giant’s stock, valued at approximately $31,993,000.
Other large investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in shares of McDonald’s by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock worth $22,112,675,000 after purchasing an additional 703,458 shares during the last quarter. State Street Corp increased its holdings in McDonald’s by 2.7% in the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after buying an additional 959,140 shares during the last quarter. Geode Capital Management LLC raised its stake in McDonald’s by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock valued at $5,195,965,000 after buying an additional 76,090 shares in the last quarter. Price T Rowe Associates Inc. MD raised its stake in McDonald’s by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant’s stock valued at $2,895,768,000 after buying an additional 277,617 shares in the last quarter. Finally, Norges Bank bought a new position in McDonald’s during the 4th quarter worth approximately $2,890,438,000. 70.29% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In
Several research analysts have recently commented on the company. Barclays decreased their target price 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. Wells Fargo & Company dropped their price target on McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a research report on Thursday, July 16th. Robert W. Baird set a $305.00 target price on shares of McDonald’s in a research note on Thursday, May 7th. Morgan Stanley dropped their target price on shares of McDonald’s from $331.00 to $322.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 15th. Finally, Cfra upgraded shares of McDonald’s to a “buy” rating in a research report on Friday, May 8th. Fifteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $336.32.
McDonald’s Trading Down 1.5%
Shares of NYSE MCD opened at $263.76 on Wednesday. The company has a market cap of $187.40 billion, a price-to-earnings ratio of 21.74, a price-to-earnings-growth ratio of 2.87 and a beta of 0.41. McDonald’s Corporation has a 12-month low of $263.65 and a 12-month high of $341.75. The stock’s 50 day simple moving average is $276.71 and its 200 day simple moving average is $299.70.
McDonald’s (NYSE:MCD – Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. The firm had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The firm’s revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the business earned $2.67 EPS. As a group, equities analysts forecast that McDonald’s Corporation will post 12.86 earnings per share for the current fiscal year.
McDonald’s Announces Dividend
The company also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.8%. McDonald’s’s dividend payout ratio is currently 61.34%.
Insider Activity
In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the 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 sale, the executive vice president owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This trade represents a 30.59% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald’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 completion of the sale, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,681 shares of company stock valued at $2,456,440 in the last 90 days. Insiders own 0.26% of the company’s stock.
Key McDonald’s News
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: Several bullish commentaries argue McDonald’s recent weakness may be an opportunity, citing improving top- and bottom-line growth, international resilience, and compressed earnings multiples that could make the stock more attractive. McDonald’s Sell-Off Is Your Opportunity
- Positive Sentiment: Another analyst upgrade says McDonald’s consistency deserves a higher multiple, pointing to faster recent revenue and earnings growth as evidence of a potential turnaround. McDonald’s: Consistency Deserves A Better Multiple (Rating Upgrade)
- Positive Sentiment: Menu innovation remains a supportive storyline, with McDonald’s rolling out new breakfast biscuits, a honey brown butter biscuit, and a Caesar menu that could help drive traffic and keep the brand in the conversation. McDonald’s Just Added 2 New Biscuits To Their Breakfast Menu
- Neutral Sentiment: Recent consumer-interest articles and product reviews highlight new limited-time menu items, but these are not yet proven to materially change earnings expectations. Review: McDonald’s Caesar sauce is the tangy menu addition we didn’t know we needed
- Negative Sentiment: Zacks noted that McDonald’s stock fell while the broader market improved, reinforcing the view that investors are rotating away from the name for now. McDonald’s (MCD) Stock Declines While Market Improves: Some Information for Investors
- Negative Sentiment: Bearish coverage says McDonald’s still may not be cheap enough despite the pullback, suggesting the market remains concerned about upside versus risk. McDonald’s: Still Not Good Enough
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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