McDonald’s Corporation $MCD Position Lessened by Stokes Capital Advisors LLC

Stokes Capital Advisors LLC decreased its holdings in McDonald’s Corporation (NYSE:MCD) by 6.0% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 38,698 shares of the fast-food giant’s stock after selling 2,486 shares during the quarter. McDonald’s makes up 2.7% of Stokes Capital Advisors LLC’s portfolio, making the stock its 7th biggest position. Stokes Capital Advisors LLC’s holdings in McDonald’s were worth $12,027,000 as of its most recent SEC filing.

A number of other hedge funds have also recently bought and sold shares of the business. Hamilton Point Investment Advisors LLC grew its position in shares of McDonald’s by 1.8% during the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant’s stock worth $535,000 after buying an additional 31 shares in the last quarter. Encompass More Asset Management raised its holdings in McDonald’s by 1.5% in the fourth quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock valued at $648,000 after acquiring an additional 32 shares in the last quarter. Richmond Investment Services LLC grew its holdings in McDonald’s by 1.4% during the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock worth $696,000 after acquiring an additional 32 shares in the last quarter. Papamarkou Wellner Asset Management inc. grew its holdings in McDonald’s by 0.4% during the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant’s stock worth $2,692,000 after acquiring an additional 32 shares in the last quarter. Finally, Physician Wealth Advisors Inc. increased its position in shares of McDonald’s by 1.6% in the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant’s stock worth $642,000 after purchasing an additional 33 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is being highlighted as part of the defensive restaurant group that can benefit when lower oil prices ease pressure on consumers, potentially supporting traffic and spending. Jack in the Box and First Watch Stocks Trade Up, What You Need To Know
• Positive Sentiment: Investors are paying attention to McDonald’s new “McDonald’s NEXT” modernization program, which aims to improve food quality, add automation, deepen digital engagement, and strengthen franchise economics over time. How Investors May Respond To McDonald’s (MCD) McDonald’s NEXT Modernization And Evolving Cash-Flow Story
• Positive Sentiment: McDonald’s China announced a sustainability partnership with Syngenta and McCain to build a more resilient potato supply chain, which could support long-term supply stability for fries and other menu items. Syngenta Group China Partners With McDonald’s and McCain for a More Sustainable Potato Supply Chain
• Neutral Sentiment: McDonald’s is drawing increased investor attention, but the related Zacks pieces are mostly stock-screening and comparison articles rather than new fundamental developments. McDonald’s Corporation (MCD) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Recent consumer-interest stories around McDonald’s products and promotions, including the fried apple pie and FIFA World Cup 26 meals, may help brand visibility but do not clearly change the near-term earnings outlook. McDonald’s unveils FIFA World Cup 26 meals with collectible cups and Squishmallows
• Negative Sentiment: Several recent articles note McDonald’s shares have pulled back meaningfully over the past week, month, and year-to-date, reinforcing a weaker technical setup and valuation concern for traders. McDonald’s (MCD) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Wall Street Analysts Forecast Growth

MCD has been the topic of several research analyst reports. Wells Fargo & Company reduced their price target on shares of McDonald’s from $355.00 to $320.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. Evercore set a $350.00 price objective on McDonald’s in a research note on Friday, May 8th. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of McDonald’s in a report on Monday. Tigress Financial lifted their target price on McDonald’s from $360.00 to $385.00 and gave the stock a “buy” rating in a research report on Friday, March 6th. Finally, Rothschild & Co Redburn upgraded McDonald’s from a “sell” rating to a “neutral” rating and boosted their price target for the company from $260.00 to $306.00 in a report on Thursday, April 23rd. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $336.26.

McDonald’s Stock Performance

NYSE MCD opened at $264.76 on Friday. McDonald’s Corporation has a one year low of $264.53 and a one year high of $341.75. The company has a 50-day simple moving average of $284.16 and a 200-day simple moving average of $304.79. The firm has a market capitalization of $188.12 billion, a PE ratio of 21.83, a price-to-earnings-growth ratio of 2.73 and a beta of 0.41.

McDonald’s (NYSE:MCD) last released its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping the consensus estimate 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 analyst estimates of $6.47 billion. During the same quarter in the prior year, the business earned $2.67 earnings per share. McDonald’s’s quarterly revenue was up 9.4% on a year-over-year basis. Equities analysts forecast that McDonald’s Corporation will post 12.93 earnings per share for the current year.

McDonald’s Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Tuesday, June 2nd. McDonald’s’s dividend payout ratio is presently 61.34%.

Insider Buying and Selling

In related news, 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 transaction of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 11,307 shares of company stock worth $3,262,622 over the last quarter. Insiders own 0.26% of the company’s stock.

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.