Retirement Systems of Alabama Has $40.35 Million Stake in McDonald’s Corporation $MCD

Retirement Systems of Alabama lowered its stake in McDonald’s Corporation (NYSE:MCD) by 1.3% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 149,263 shares of the fast-food giant’s stock after selling 1,968 shares during the quarter. Retirement Systems of Alabama’s holdings in McDonald’s were worth $40,347,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Baker Avenue Asset Management LP increased its position in McDonald’s by 15.6% during the 2nd quarter. Baker Avenue Asset Management LP now owns 4,323 shares of the fast-food giant’s stock worth $1,169,000 after purchasing an additional 584 shares in the last quarter. Meramec Financial Planners LLC boosted its position in McDonald’s by 47.4% in the second quarter. Meramec Financial Planners LLC now owns 588 shares of the fast-food giant’s stock valued at $159,000 after buying an additional 189 shares in the last quarter. Banco Santander S.A. grew its stake in shares of McDonald’s by 14.6% during the second quarter. Banco Santander S.A. now owns 88,602 shares of the fast-food giant’s stock worth $23,950,000 after buying an additional 11,258 shares during the last quarter. Analyst IMS Investment Management Services Ltd. increased its holdings in shares of McDonald’s by 16.9% during the second quarter. Analyst IMS Investment Management Services Ltd. now owns 2,769 shares of the fast-food giant’s stock worth $749,000 after buying an additional 401 shares in the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. lifted its stake in shares of McDonald’s by 317.5% in the 2nd quarter. Harel Insurance Investments & Financial Services Ltd. now owns 3,077 shares of the fast-food giant’s stock valued at $831,000 after acquiring an additional 2,340 shares during the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald’s Trading Up 0.1%

NYSE MCD opened at $272.61 on Friday. The business’s 50-day moving average price is $273.81 and its two-hundred day moving average price is $295.28. McDonald’s Corporation has a 12 month low of $260.96 and a 12 month high of $341.75. The firm has a market capitalization of $192.91 billion, a PE ratio of 22.15, a price-to-earnings-growth ratio of 3.05 and a beta of 0.41.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.06. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The company had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. During the same quarter in the prior year, the firm posted $3.19 earnings per share. The business’s quarterly revenue was up 3.7% on a year-over-year basis. As a group, analysts forecast that McDonald’s Corporation will post 12.88 earnings per share for the current fiscal year.

McDonald’s Dividend Announcement

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

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers
• Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers
• Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys
• Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call
• Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground
• Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered
• Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report

Insider Activity at McDonald’s

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction on 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 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 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. Company insiders own 0.26% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. BTIG Research restated a “buy” rating and set a $350.00 price objective on shares of McDonald’s in a research report on Wednesday, August 5th. Barclays cut their price target on McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Morgan Stanley lowered their price objective on McDonald’s from $322.00 to $319.00 and set an “equal weight” rating for the company in a research note on Wednesday, August 5th. Citigroup lifted their target price on shares of McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on shares of McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $325.44.

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.