Cambridge Investment Research Advisors Inc. Raises Stock Position in McDonald’s Corporation $MCD

Cambridge Investment Research Advisors Inc. boosted its holdings in shares of McDonald’s Corporation (NYSE:MCD) by 1.1% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 213,282 shares of the fast-food giant’s stock after purchasing an additional 2,319 shares during the period. Cambridge Investment Research Advisors Inc.’s holdings in McDonald’s were worth $57,652,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in MCD. Vanguard Group Inc. raised its stake in shares of McDonald’s by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock valued at $22,112,675,000 after buying an additional 703,458 shares during the last quarter. State Street Corp boosted its stake in shares of 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 worth $10,997,789,000 after buying an additional 959,140 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of McDonald’s by 0.4% in the fourth 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% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant’s stock worth $2,895,768,000 after acquiring an additional 277,617 shares during the period. Finally, Norges Bank acquired a new stake in McDonald’s during the fourth quarter worth about $2,890,438,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald’s Stock Performance

Shares of NYSE MCD opened at $272.28 on Friday. The firm has a market cap of $192.68 billion, a PE ratio of 22.12, a PEG ratio of 3.09 and a beta of 0.41. The firm has a fifty day moving average of $273.95 and a 200 day moving average of $295.44. McDonald’s Corporation has a one year low of $260.96 and a one year high of $341.75.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data 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 512.80%. The business had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same period last year, the firm posted $3.19 earnings per share. The company’s revenue was up 3.7% compared to the same quarter last year. On average, equities analysts predict that McDonald’s Corporation will post 12.88 EPS for the current fiscal year.

McDonald’s Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio is 60.44%.

Insider Activity

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction that occurred 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 completion of the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through 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 stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider 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 disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 8,348 shares of company stock valued at $2,355,634. Insiders own 0.26% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. Guggenheim decreased their price target on McDonald’s from $320.00 to $290.00 and set a “neutral” rating for the company in a report on Wednesday, August 5th. Morgan Stanley dropped their price objective on shares of McDonald’s from $322.00 to $319.00 and set an “equal weight” rating on the stock in a research note on Wednesday, August 5th. Wells Fargo & Company cut their target price on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday, July 16th. TD Cowen reiterated a “hold” rating on shares of McDonald’s in a research note on Tuesday, August 4th. Finally, Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and increased their price target for the stock from $260.00 to $306.00 in a report on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $325.44.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: Nationwide menu initiatives, including new energy-focused beverages, seven menu additions, and the limited-time Hello Kitty and Godzilla Happy Meal promotion, could support traffic, customer engagement, and comparable-sales growth. McDonald’s serving up new kind of energy boost on menus nationwide
• Positive Sentiment: Some analysts see potential upside toward the mid-$300s if McDonald’s improves U.S. same-store sales and executes its McDonald’s NEXT strategy effectively. The company also continues to benefit from its large franchise and real-estate platform. McDonald’s stock gets fair value trim as analysts split on U.S. execution

McDonald’s 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.