KLCM Advisors Inc. Boosts Holdings in McDonald’s Corporation $MCD

KLCM Advisors Inc. raised its stake in shares of McDonald’s Corporation (NYSE:MCD) by 107.1% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 7,148 shares of the fast-food giant’s stock after purchasing an additional 3,697 shares during the period. KLCM Advisors Inc.’s holdings in McDonald’s were worth $2,185,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. AG2R LA Mondiale Gestion D Actifs lifted its holdings in McDonald’s by 6.2% during the fourth quarter. AG2R LA Mondiale Gestion D Actifs now owns 28,256 shares of the fast-food giant’s stock valued at $8,636,000 after purchasing an additional 1,661 shares in the last quarter. Certior Financial Group LLC lifted its stake in shares of McDonald’s by 8.0% in the fourth quarter. Certior Financial Group LLC now owns 1,459 shares of the fast-food giant’s stock worth $446,000 after buying an additional 108 shares in the last quarter. Nicholas Company Inc. lifted its stake in shares of McDonald’s by 11.5% in the fourth quarter. Nicholas Company Inc. now owns 199,475 shares of the fast-food giant’s stock worth $60,966,000 after buying an additional 20,565 shares in the last quarter. 49 Wealth Management LLC lifted its stake in shares of McDonald’s by 35.2% in the fourth quarter. 49 Wealth Management LLC now owns 1,366 shares of the fast-food giant’s stock worth $418,000 after buying an additional 356 shares in the last quarter. Finally, Kepler Cheuvreux Suisse SA lifted its stake in shares of McDonald’s by 4.8% in the fourth quarter. Kepler Cheuvreux Suisse SA now owns 10,894 shares of the fast-food giant’s stock worth $3,330,000 after buying an additional 501 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at McDonald’s

In other McDonald’s news, insider Joseph M. Erlinger sold 333 shares of McDonald’s stock in a transaction dated Thursday, April 23rd. The shares were sold at an average price of $302.72, for a total transaction of $100,805.76. Following the completion of the sale, the insider directly owned 8,067 shares in the company, valued at $2,442,042.24. This trade represents a 3.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Christopher J. Kempczinski sold 26,276 shares of McDonald’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $333.54, for a total transaction of $8,764,097.04. Following the sale, the chief executive officer owned 22,900 shares of the company’s stock, valued at approximately $7,638,066. This represents a 53.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 69,364 shares of company stock valued at $22,970,006 in the last ninety days. Insiders own 0.26% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on MCD shares. Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and raised their price target for the stock from $260.00 to $306.00 in a research note on Thursday, April 23rd. KeyCorp decreased their price target on shares of McDonald’s from $345.00 to $330.00 and set an “overweight” rating on the stock in a research note on Friday. Weiss Ratings downgraded shares of McDonald’s from a “buy (b)” rating to a “buy (b-)” rating in a research note on Monday, April 27th. Barclays decreased their price target 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. Finally, Royal Bank Of Canada decreased their price target on shares of McDonald’s from $330.00 to $305.00 and set a “sector perform” rating on the stock in a research note on Friday. Seventeen equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $334.45.

McDonald’s News Summary

Here are the key news stories impacting McDonald’s this week:

• Positive Sentiment: UBS said McDonald’s is poised for underlying momentum, with U.S. and global market share gains likely despite macro headwinds. McDonald’s Poised for Market Share Gains Despite Macro Headwinds, UBS Says
• Positive Sentiment: Reports on McDonald’s value strategy suggest the new Extra Value Menu is outperforming expectations and helping franchisees, reinforcing the view that affordability is supporting traffic. McDonald’s New Extra Value Menu Is Beating Expectations — And Franchisees Are Seeing the Value
• Positive Sentiment: Commentary from investors and analysts continues to frame McDonald’s as a defensive value-oriented fast-food name, which may help support the stock if consumers keep trading down from pricier rivals. Shake Shack Stock Looks Ugly After Earnings. Burger Eaters Were Opting for Value Instead
• Neutral Sentiment: Some articles focused on brand nostalgia, menu hacks, and breakfast items, but these are unlikely to materially affect the stock in the near term.
• Neutral Sentiment: McDonald’s continued modernization efforts, including phasing out self-serve soda machines, point to ongoing operational changes but do not by themselves change the investment thesis.
• Negative Sentiment: JPMorgan cut its price target on McDonald’s to $305 from $325, and TD Cowen also lowered its target, adding to worries that same-store sales could be stalling. JPMorgan Cuts McDonald’s Price Target to $305: Is the Same-Store-Sales Story Stalling?
• Negative Sentiment: Investor concern is rising that higher gas prices and a broader consumer spending pullback could weaken demand among lower-income diners, which could pressure traffic and sales. McDonald’s focus on value lifts sales, but says gas prices could dent demand

McDonald’s Price Performance

Shares of MCD stock opened at $274.36 on Tuesday. The firm’s 50-day moving average is $309.05 and its two-hundred day moving average is $310.94. McDonald’s Corporation has a 12 month low of $271.98 and a 12 month high of $341.75. The company has a market capitalization of $194.93 billion, a PE ratio of 22.62, a price-to-earnings-growth ratio of 2.58 and a beta of 0.43.

McDonald’s (NYSE:MCD) last issued its earnings results 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. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the previous year, the firm earned $2.67 earnings per share. McDonald’s’s quarterly revenue was up 9.4% compared to the same quarter last year. Sell-side analysts forecast that McDonald’s Corporation will post 13.04 EPS for the current year.

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.