SVB Wealth LLC Cuts Stake in McDonald’s Corporation $MCD

SVB Wealth LLC reduced its stake in McDonald’s Corporation (NYSE:MCD) by 25.8% during the fourth quarter, according to its most recent filing with the SEC. The fund owned 16,926 shares of the fast-food giant’s stock after selling 5,870 shares during the quarter. SVB Wealth LLC’s holdings in McDonald’s were worth $5,173,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of the company. Vanguard Group Inc. lifted its stake in McDonald’s by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock valued at $22,112,675,000 after purchasing an additional 703,458 shares during the last quarter. State Street Corp lifted its stake in McDonald’s by 0.6% in the third quarter. State Street Corp now owns 35,024,857 shares of the fast-food giant’s stock valued at $10,643,704,000 after purchasing an additional 196,505 shares during the last quarter. Legal & General Group Plc lifted its stake in McDonald’s by 6.4% in the third quarter. Legal & General Group Plc now owns 4,757,967 shares of the fast-food giant’s stock valued at $1,445,899,000 after purchasing an additional 286,284 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in McDonald’s by 0.5% during the third quarter. Ameriprise Financial Inc. now owns 4,422,014 shares of the fast-food giant’s stock valued at $1,343,501,000 after purchasing an additional 21,168 shares during the last quarter. Finally, Franklin Resources Inc. lifted its holdings in McDonald’s by 36.6% during the third quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant’s stock valued at $1,336,155,000 after purchasing an additional 1,179,244 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have commented on MCD. Citigroup upped their price objective on shares of McDonald’s from $371.00 to $375.00 and gave the company a “buy” rating in a report on Thursday, February 12th. Barclays reduced their price objective on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a research note on Friday. KeyCorp dropped their target price on McDonald’s from $345.00 to $330.00 and set an “overweight” rating on the stock in a research report on Friday. Mizuho increased their target price on McDonald’s from $300.00 to $325.00 and gave the stock a “neutral” rating in a research report on Friday, February 6th. Finally, Argus upgraded McDonald’s from a “hold” rating to a “buy” rating and set a $380.00 target price on the stock in a research report on Friday, February 13th. Seventeen research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $335.14.

Insider Activity at McDonald’s

In related news, CEO Christopher J. Kempczinski sold 26,276 shares of the firm’s stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $333.54, for a total value of $8,764,097.04. Following the sale, the chief executive officer directly owned 22,900 shares of the company’s stock, valued at $7,638,066. This trade represents a 53.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CMO Edith Morgan Flatley sold 4,692 shares of the firm’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $331.00, for a total transaction of $1,553,052.00. Following the completion of the sale, the chief marketing officer directly owned 6,200 shares in the company, valued at $2,052,200. This represents a 43.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 71,990 shares of company stock valued at $23,824,113. Company insiders own 0.26% of the company’s stock.

More McDonald’s News

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

• Positive Sentiment: Some market commentary says the recent drop in McDonald’s (MCD) shares may be overdone, pointing to the company’s value as a dividend growth stock and suggesting long-term investors could use weakness to accumulate shares. Article Title
• Positive Sentiment: McDonald’s value-focused promotions helped lift sales, and prior reporting noted 3.8% higher Q1 comparable-store sales, showing that budget-friendly offerings are still resonating with customers. Article Title
• Positive Sentiment: Investors also reacted to bullish takes that McDonald’s stock could be attractive after its slide, with some writers citing renewed interest in the company’s value proposition and product momentum. Article Title
• Neutral Sentiment: McDonald’s is modernizing some operations, including phasing out self-serve soda machines, which is a longer-term efficiency and customer-experience change with limited immediate earnings impact. Article Title
• Neutral Sentiment: Several stories focused on McDonald’s menu hacks, breakfast value, and brand nostalgia, which support consumer engagement but are unlikely to materially move the stock on their own. Article Title
• Negative Sentiment: More important for traders, McDonald’s management warned that higher gas prices and a potential pullback in consumer spending could hurt demand, fueling concerns that traffic may soften. Article Title
• Negative Sentiment: TD Cowen cut its price target on McDonald’s (MCD) to $300, reflecting a more cautious view on the stock after the recent weakness. Article Title
• Negative Sentiment: McDonald’s is also facing backlash over its McValue menu, with some consumers comparing it unfavorably to older, cheaper pricing, highlighting the pressure the company faces to defend its affordability image. Article Title

McDonald’s Stock Performance

Shares of MCD stock opened at $275.62 on Monday. McDonald’s Corporation has a 52-week low of $274.83 and a 52-week high of $341.75. The company has a market capitalization of $195.83 billion, a PE ratio of 22.72, a price-to-earnings-growth ratio of 2.58 and a beta of 0.43. The business’s fifty day moving average is $311.40 and its 200 day moving average is $311.40.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. The company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The firm’s revenue was up 9.4% compared to the same quarter last year. During the same quarter last year, the business posted $2.67 earnings per share. On average, sell-side analysts forecast that McDonald’s Corporation will post 13.04 EPS for the current fiscal 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.