Pacer Advisors Inc. trimmed its position in McDonald’s Corporation (NYSE:MCD – Free Report) by 6.4% during the first quarter, according to its most recent 13F filing with the SEC. The fund owned 112,147 shares of the fast-food giant’s stock after selling 7,651 shares during the period. Pacer Advisors Inc.’s holdings in McDonald’s were worth $34,854,000 as of its most recent filing with the SEC.
Several other hedge funds and other institutional investors also recently made changes to their positions in MCD. Your Advocates Ltd. LLP bought a new position in McDonald’s in the fourth quarter valued at about $27,000. IFC & Insurance Marketing Inc. acquired a new stake in McDonald’s in the fourth quarter worth about $29,000. Abound Financial LLC bought a new stake in McDonald’s during the 4th quarter worth about $30,000. Purpose Unlimited Inc. bought a new stake in McDonald’s during the 4th quarter worth about $31,000. Finally, DecisionPoint Financial LLC lifted its position in McDonald’s by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock valued at $31,000 after purchasing an additional 97 shares during the period. 70.29% of the stock is owned by institutional investors and hedge funds.
McDonald’s Stock Down 1.7%
Shares of NYSE MCD opened at $266.02 on Tuesday. The company’s fifty day moving average is $274.55 and its 200-day moving average is $297.32. The stock has a market cap of $189.01 billion, a price-to-earnings ratio of 21.93, a P/E/G ratio of 2.91 and a beta of 0.41. McDonald’s Corporation has a twelve month low of $260.96 and a twelve month high of $341.75.
McDonald’s Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s payout ratio is presently 61.34%.
Insider Activity
In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 8,348 shares of company stock valued at $2,355,634 over the last 90 days. Corporate 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: McDonald’s second-quarter results could benefit from its new $3 menu, promotional initiatives and potential traffic tied to the World Cup. Investors will look for evidence that value offerings are increasing visits without materially damaging margins. McDonald’s Q2 Preview: World Cup, New $3 Menu, Higher Gas Prices – Which Theme Wins Out
- Neutral Sentiment: Options traders expect a substantial move following earnings, with some anticipating a potential new two-year low. The report and management’s outlook are likely to drive near-term volatility, particularly around U.S. comparable sales, international performance and franchisee margins. Here’s How Much McDonald’s Stock Is Expected to Move After Earnings
- Negative Sentiment: Budget-conscious consumers remain under financial pressure, raising concern that customers may trade down, reduce restaurant visits or limit discretionary purchases. This makes the performance of McDonald’s value strategy especially important in the earnings release. McDonald’s to Report Q2 Earnings as Budget-Conscious Consumers Remain Under Stress
- Negative Sentiment: Reports about lettuce-related illness and consumer safety concerns could weigh on restaurant traffic and brand sentiment, although the earnings reports will provide the clearest indication of whether such issues affected McDonald’s demand. Did Lettuce Illness Hurt Restaurants? These Reports Will Tell If Diners Feel Safe
- Negative Sentiment: Mizuho lowered its McDonald’s price target to $290, signaling reduced expectations even though the new target remains above recent trading levels. Mizuho Cuts McDonald’s Price Target to $290
Analyst Ratings Changes
Several research analysts have recently issued reports on MCD shares. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of McDonald’s in a research note on Tuesday, July 28th. Mizuho cut their price objective on shares of McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a report on Friday. Weiss Ratings cut shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. KeyCorp reaffirmed an “overweight” rating on shares of McDonald’s 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 research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $331.92.
Check Out Our Latest Research Report on MCD
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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