QRG Capital Management Inc. Increases Stock Position in McDonald’s Corporation $MCD

QRG Capital Management Inc. raised its stake in shares of McDonald’s Corporation (NYSE:MCD) by 13.8% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 100,057 shares of the fast-food giant’s stock after purchasing an additional 12,137 shares during the quarter. QRG Capital Management Inc.’s holdings in McDonald’s were worth $31,097,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Your Advocates Ltd. LLP bought a new stake in McDonald’s during the fourth quarter worth about $27,000. Park Place Capital Corp increased its position in shares of McDonald’s by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after purchasing an additional 45 shares during the last quarter. IFC & Insurance Marketing Inc. purchased a new position in shares of McDonald’s during the 4th quarter valued at about $29,000. Abound Financial LLC purchased a new position in shares of McDonald’s during the 4th quarter valued at about $30,000. Finally, Purpose Unlimited Inc. bought a new stake in McDonald’s in the 4th quarter worth approximately $31,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Insiders Place Their Bets

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This trade represents a 30.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction dated Wednesday, June 10th. The shares were 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 SEC filing for this sale provides additional information. Insiders have sold a total of 11,307 shares of company stock valued at $3,262,622 over the last quarter. 0.26% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several analysts have issued reports on MCD shares. Erste Group Bank lowered McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Robert W. Baird set a $305.00 price target on shares of McDonald’s in a research note on Thursday, May 7th. TD Cowen restated a “hold” rating on shares of McDonald’s in a report on Friday, June 12th. JPMorgan Chase & Co. cut their price objective on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a research note on Monday, May 11th. Finally, KeyCorp decreased their target price on shares of McDonald’s from $330.00 to $315.00 and set an “overweight” rating on the stock in a research report on Monday, June 29th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $335.70.

McDonald’s Price Performance

MCD opened at $280.48 on Friday. The stock’s 50 day simple moving average is $280.25 and its 200 day simple moving average is $303.22. The firm has a market cap of $199.29 billion, a price-to-earnings ratio of 23.12, a PEG ratio of 2.80 and a beta of 0.41. McDonald’s Corporation has a 1 year low of $264.53 and a 1 year high of $341.75.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating the consensus estimate of $2.74 by $0.09. The firm had revenue of $6.52 billion during 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 business’s revenue was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.67 earnings per share. As a group, sell-side analysts anticipate that McDonald’s Corporation will post 12.93 EPS for the current year.

McDonald’s Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were paid a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald’s’s payout ratio is presently 61.34%.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s stock was lifted by a UBS note highlighting it as an attractive defensive dividend name, helping support the shares as investors rotate toward stable cash-generating companies. Why McDonald’s (MCD) Stock Is Up Today
• Positive Sentiment: McDonald’s continues to appeal to income investors after its latest quarterly dividend, reinforcing its reputation as one of the most reliable dividend payers in the Dow. Despite Franchisees Struggling, McDonald’s Dividend Keeps Rising
• Positive Sentiment: New menu and promotional chatter, including Happy Meal tie-ins, free fries offers, and added chicken items, could help drive customer engagement and traffic. BT21 Toys Teases Coming To McDonald’s Happy Meals On July 14
• Neutral Sentiment: McDonald’s is also getting broader media attention around its brand history and restaurant expansion plans, but these items are not likely to move the stock much on their own. The McDonald’s Big Mac jingle from the mid ’70s that still lives in our heads
• Neutral Sentiment: McDonald’s hired a new development executive to support its NEXT strategy, which signals execution progress but is still more of a long-term operating update than an immediate stock catalyst. McDonald’s taps Raising Cane’s vet to lead development
• Negative Sentiment: A Trefis report said McDonald’s is facing a real risk from trying to win over budget-conscious customers, with franchisee strain from inflation and weak consumer sentiment weighing on the system. The Real Risk Squeezing McDonald’s Stock
• Negative Sentiment: Another recent analysis said MCD is near 52-week lows because of margin pressure at franchisees and softer foot traffic, which continues to limit enthusiasm despite the dividend appeal. Should You Buy McDonald’s (MCD) At 52-Week Lows

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.