NewEdge Advisors LLC Decreases Stock Holdings in McDonald’s Corporation $MCD

NewEdge Advisors LLC decreased its stake in shares of McDonald’s Corporation (NYSE:MCD) by 39.5% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 158,937 shares of the fast-food giant’s stock after selling 103,620 shares during the period. NewEdge Advisors LLC’s holdings in McDonald’s were worth $42,962,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in MCD. California State Teachers Retirement System raised its stake in McDonald’s by 27,036.7% during the 2nd quarter. California State Teachers Retirement System now owns 302,891,546 shares of the fast-food giant’s stock valued at $81,874,614,000 after buying an additional 301,775,375 shares during the last quarter. Norges Bank purchased a new position in shares of McDonald’s in the 4th quarter worth $2,890,438,000. Bank of New York Mellon Corp bought a new stake in shares of McDonald’s in the second quarter worth $1,359,276,000. Diamant Asset Management Inc. grew its holdings in shares of McDonald’s by 30,979.0% in the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock worth $806,917,000 after acquiring an additional 2,587,986 shares during the period. Finally, J. Stern & Co. LLP increased its position in McDonald’s by 9,867.5% during the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after acquiring an additional 2,515,515 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have weighed in on MCD shares. TD Cowen reissued a “hold” rating on shares of McDonald’s in a report on Tuesday, August 4th. KeyCorp cut their price target on McDonald’s from $315.00 to $305.00 and set an “overweight” rating for the company in a research note on Wednesday, August 5th. Evercore set a $320.00 price target on shares of McDonald’s in a research report on Thursday, July 23rd. Morgan Stanley lowered 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. Finally, Mizuho dropped their price objective on shares of McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $321.35.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is launching several traffic-driving initiatives, including a one-day $1 cheeseburger promotion, new SpongeBob and One Piece Happy Meal toys, and a first-of-its-kind fall flavor in Canada replacing the company’s traditional pumpkin-spice offering. These campaigns could support customer visits and seasonal sales, although their financial impact is likely limited. McDonald’s Is Offering $1 Cheeseburgers
• Positive Sentiment: Analysts continue to view McDonald’s as a relatively defensive consumer stock amid uncertainty around inflation and Federal Reserve policy. Its franchise-heavy model, global scale and dividend profile may provide support if market volatility increases. Defensive Stocks to Watch
• Neutral Sentiment: McDonald’s is slowing its restaurant expansion pace to protect returns as development costs rise and consumers remain price-sensitive. The strategy may improve the economics of new locations, but it also implies a more measured growth outlook. McDonald’s Slower Expansion Pace
• Negative Sentiment: McDonald’s reportedly faces potentially significant fines related to the use of disposable cups. If confirmed, the penalties could increase costs and add to environmental-compliance risk. McDonald’s Faces Millions in Fines
• Negative Sentiment: Some consumer coverage criticizes new menu items and reduced children’s amenities, potentially highlighting affordability, value and customer-experience concerns. These stories are primarily reputational and are unlikely to materially affect near-term financial results on their own.

McDonald’s Stock Performance

NYSE MCD opened at $253.59 on Thursday. The company has a market capitalization of $179.45 billion, a PE ratio of 20.60, a price-to-earnings-growth ratio of 2.76 and a beta of 0.41. The business’s fifty day moving average is $268.81 and its 200 day moving average is $287.58. McDonald’s Corporation has a fifty-two week low of $253.35 and a fifty-two week high of $341.75.

McDonald’s (NYSE:MCD) last released its quarterly earnings results 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. The business had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.McDonald’s’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.19 earnings per share. On average, sell-side analysts forecast that McDonald’s Corporation will post 12.88 EPS for the current 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 paid a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.9%. McDonald’s’s dividend payout ratio (DPR) is presently 60.44%.

About McDonald’s

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.