Welch Group LLC Grows Holdings in McDonald’s Corporation $MCD

Welch Group LLC lifted its position in shares of McDonald’s Corporation (NYSE:MCD) by 1.3% in the first quarter, HoldingsChannel.com reports. The institutional investor owned 215,074 shares of the fast-food giant’s stock after buying an additional 2,845 shares during the quarter. McDonald’s accounts for approximately 2.5% of Welch Group LLC’s holdings, making the stock its 15th largest position. Welch Group LLC’s holdings in McDonald’s were worth $66,843,000 as of its most recent SEC filing.

A number of other institutional investors have also modified their holdings of MCD. Vanguard Group Inc. grew its stake in McDonald’s by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock worth $22,112,675,000 after acquiring an additional 703,458 shares during the period. State Street Corp lifted its position in McDonald’s by 2.7% during the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock worth $10,997,789,000 after buying an additional 959,140 shares during the period. Geode Capital Management LLC boosted its stake in McDonald’s by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock worth $5,195,965,000 after buying an additional 76,090 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in McDonald’s by 3.0% in the 4th 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 during the period. Finally, Norges Bank acquired a new position in shares of McDonald’s during the 4th quarter valued at about $2,890,438,000. Institutional investors and hedge funds own 70.29% of the company’s stock.

McDonald’s News Summary

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

• Positive Sentiment: McDonald’s is drawing attention for menu-driven buzz, including the return of its fried apple pie and coverage around World Cup collectible cups, which can help traffic, social engagement, and near-term sales. We Tried It: A Visit to McDonald’s 35-Foot Fried Apple Pie Along Rte 66
• Positive Sentiment: The company is also expanding and modernizing, including a new Howard City location and a broader “McDonald’s NEXT” push focused on automation, digital ordering, better food quality, and improved franchise economics. McDonald’s opens first Howard City location
• Positive Sentiment: Some commentary says lower oil prices are helping restaurant stocks broadly, easing consumer wallet pressure and lifting quick-service dining names like McDonald’s. Jack in the Box and First Watch Stocks Trade Up, What You Need To Know
• Neutral Sentiment: Zacks noted that McDonald’s is relying on China expansion to support long-term growth, but macro pressure and regional volatility are still weighing on near-term trends. Can McDonald’s China Expansion Support IDL Growth Amid Macro Pressure?
• Neutral Sentiment: Several articles were mostly consumer-interest pieces about how to save money at McDonald’s or how its products taste, which add brand visibility but are unlikely to materially affect fundamentals. How To Find the Cheapest McDonald’s Wherever You Are
• Negative Sentiment: One recent article highlights that Burger King breakfast sandwiches may outperform McDonald’s on a key advantage, reinforcing competitive pressure in breakfast and value-focused traffic. Burger King breakfast sandwiches outshine McDonald’s every time with one big advantage
• Negative Sentiment: There is also scrutiny around McDonald’s new AI drive-thru testing after a prior system was removed in 2024 due to ordering errors, which could raise questions about execution risk if rollout issues persist. McDonald’s is testing a new AI drive-thru system after removing its previous one in 2024 over order errors

Analyst Ratings Changes

MCD has been the topic of several recent analyst reports. Weiss Ratings lowered shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday. Royal Bank Of Canada restated a “sector perform” rating on shares of McDonald’s in a report on Tuesday. Morgan Stanley set a $331.00 price target on shares of McDonald’s in a research report on Friday, May 8th. KeyCorp cut 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, May 8th. Finally, Robert W. Baird set a $305.00 price target on shares of McDonald’s in a report on Thursday, May 7th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, McDonald’s presently has a consensus rating of “Moderate Buy” and a consensus price target of $336.26.

McDonald’s Stock Performance

MCD opened at $270.21 on Friday. McDonald’s Corporation has a 1 year low of $264.53 and a 1 year high of $341.75. The firm has a 50 day moving average price of $283.43 and a 200 day moving average price of $304.54. The company has a market cap of $191.98 billion, a PE ratio of 22.28, a price-to-earnings-growth ratio of 2.64 and a beta of 0.41.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating 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 firm had revenue of $6.52 billion for the quarter, compared to analysts’ expectations of $6.47 billion. During the same period in the previous year, the company posted $2.67 earnings per share. McDonald’s’s revenue was up 9.4% compared to the same quarter last year. On average, sell-side analysts predict that McDonald’s Corporation will post 12.93 earnings per share for the current year.

McDonald’s Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald’s’s dividend payout ratio (DPR) is currently 61.34%.

Insider Buying and Selling at McDonald’s

In related news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’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 transaction, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 11,307 shares of company stock worth $3,262,622 in the last 90 days. Company insiders own 0.26% of the company’s stock.

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.