Payden & Rygel decreased its position in shares of McDonald’s Corporation (NYSE:MCD – Free Report) by 8.6% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 38,300 shares of the fast-food giant’s stock after selling 3,600 shares during the period. Payden & Rygel’s holdings in McDonald’s were worth $10,353,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors also recently modified their holdings of the company. Your Advocates Ltd. LLP bought a new stake in McDonald’s during the 4th quarter worth approximately $27,000. IFC & Insurance Marketing Inc. bought a new position in McDonald’s in the 4th quarter valued at $29,000. Abound Financial LLC acquired a new position in McDonald’s in the fourth quarter worth $30,000. DecisionPoint Financial LLC boosted its stake in McDonald’s by 1,616.7% in the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock worth $31,000 after purchasing an additional 97 shares in the last quarter. Finally, Entrust Financial LLC bought a new stake in shares of McDonald’s during the fourth quarter worth $31,000. Institutional investors own 70.29% of the company’s stock.
Wall Street Analysts Forecast Growth
A number of analysts have recently weighed in on MCD shares. Mizuho lowered their target price on McDonald’s from $300.00 to $290.00 and set a “neutral” rating for the company in a research note on Friday, July 31st. JPMorgan Chase & Co. reduced their price target on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research report on Monday, May 11th. Barclays decreased their price objective on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. KeyCorp dropped their target price on shares of McDonald’s from $315.00 to $305.00 and set an “overweight” rating for the company in a research note on Wednesday, August 5th. Finally, Piper Sandler set a $286.00 target price on shares of McDonald’s in a research report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, McDonald’s presently has a consensus rating of “Moderate Buy” and a consensus target price of $325.44.
Insider Buying and Selling
In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of the firm’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 transaction, the insider directly 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 8,348 shares of company stock worth $2,355,634. Insiders own 0.26% of the company’s stock.
McDonald’s News Roundup
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s valuation has become more attractive after its decline, with one bullish estimate implying substantial upside toward the Wall Street consensus target. However, analysts say investors may need to wait for clearer evidence of improved execution. Is McDonald’s a Buy Today as Lower Valuation Meets Execution Risk?
- Positive Sentiment: A workforce scheduling and transportation app reportedly helped one McDonald’s franchise avoid missed shifts and save about $35,000 per month. Wider adoption could improve staffing reliability and restaurant-level margins. Missed shifts were costly to this McDonald’s. An app has fixed the problem
- Positive Sentiment: Limited-time promotions, including Hello Kitty–Godzilla Happy Meals, new fall beverages and an afternoon-focused menu strategy aimed at Starbucks could support traffic and increase customer occasions. McDonald’s Takes Direct Aim at Starbucks
- Neutral Sentiment: McDonald’s latest quarterly earnings beat expectations on EPS, helped by franchised operations, but revenue slightly missed estimates. Investors remain focused on whether cost controls and franchise strength can offset softer U.S. demand. McDonald’s Q2 Earnings Beat Puts U.S. Traffic and Margins in Focus
- Negative Sentiment: Numerator data showed sales among low-income customers fell 2.4% in the latest quarter, indicating that prior price increases may be pushing budget-conscious diners toward alternatives. McDonald’s is losing ground to rivals like Burger King with a key customer group
- Negative Sentiment: Weak U.S. traffic, value-offer execution problems, rising beef and operating costs, and competition from Burger King are creating pressure on sales and margins. The broader economic concern flagged by restaurant and consumer-goods executives adds to the risk. Burger King is taking a bite out of McDonald’s lunch
McDonald’s Trading Up 0.6%
Shares of NYSE:MCD opened at $267.15 on Wednesday. McDonald’s Corporation has a 1-year low of $260.96 and a 1-year high of $341.75. The stock has a market capitalization of $189.04 billion, a P/E ratio of 21.70, a P/E/G ratio of 3.05 and a beta of 0.41. The business has a 50-day moving average price of $273.27 and a two-hundred day moving average price of $294.49.
McDonald’s (NYSE:MCD – Get Free Report) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same quarter last year, the firm earned $3.19 EPS. The company’s revenue for the quarter was up 3.7% on a year-over-year basis. As a group, equities analysts predict that McDonald’s Corporation will post 12.88 EPS for the current year.
McDonald’s Announces Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be issued a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.8%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio is currently 60.44%.
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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