Perennial Advisors LLC Makes New Investment in McDonald’s Co. (NYSE:MCD)

Perennial Advisors LLC purchased a new position in McDonald’s Co. (NYSE:MCD) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 26,714 shares of the fast-food giant’s stock, valued at approximately $7,744,000. McDonald’s makes up approximately 1.7% of Perennial Advisors LLC’s portfolio, making the stock its 19th biggest position.

Several other institutional investors have also added to or reduced their stakes in MCD. Norges Bank acquired a new stake in shares of McDonald’s during the fourth quarter worth about $2,725,190,000. Raymond James Financial Inc. acquired a new stake in shares of McDonald’s during the fourth quarter worth about $703,074,000. Castlekeep Investment Advisors LLC acquired a new stake in shares of McDonald’s during the fourth quarter worth about $350,935,000. Northern Trust Corp lifted its holdings in shares of McDonald’s by 11.2% during the fourth quarter. Northern Trust Corp now owns 8,867,193 shares of the fast-food giant’s stock worth $2,570,511,000 after purchasing an additional 895,896 shares during the period. Finally, Franklin Resources Inc. lifted its holdings in shares of McDonald’s by 24.4% during the fourth quarter. Franklin Resources Inc. now owns 4,054,387 shares of the fast-food giant’s stock worth $1,175,326,000 after purchasing an additional 794,536 shares during the period. Institutional investors and hedge funds own 70.29% of the company’s stock.

McDonald’s Price Performance

McDonald’s stock opened at $314.65 on Friday. The stock has a market capitalization of $224.99 billion, a PE ratio of 27.63, a price-to-earnings-growth ratio of 3.10 and a beta of 0.57. McDonald’s Co. has a 12 month low of $243.53 and a 12 month high of $326.32. The business has a 50 day simple moving average of $311.68 and a 200-day simple moving average of $301.50.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Thursday, May 1st. The fast-food giant reported $2.67 EPS for the quarter, meeting analysts’ consensus estimates of $2.67. McDonald’s had a negative return on equity of 181.63% and a net margin of 31.73%. The business had revenue of $5.96 billion during the quarter, compared to analysts’ expectations of $6.17 billion. During the same period in the previous year, the business earned $2.70 earnings per share. The business’s revenue was down 3.5% compared to the same quarter last year. On average, equities research analysts anticipate that McDonald’s Co. will post 12.25 EPS for the current fiscal year.

McDonald’s Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 16th. Investors of record on Monday, June 2nd will be given a dividend of $1.77 per share. This represents a $7.08 annualized dividend and a dividend yield of 2.25%. The ex-dividend date of this dividend is Monday, June 2nd. McDonald’s’s payout ratio is 62.49%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Northcoast Research downgraded McDonald’s from a “buy” rating to a “neutral” rating in a report on Tuesday, May 6th. Piper Sandler lifted their target price on McDonald’s from $292.00 to $314.00 and gave the stock a “neutral” rating in a report on Friday, May 2nd. Truist Financial set a $350.00 target price on McDonald’s in a report on Friday, May 2nd. Citigroup lifted their target price on McDonald’s from $353.00 to $364.00 and gave the stock a “buy” rating in a report on Friday, May 2nd. Finally, Wedbush boosted their price target on McDonald’s from $320.00 to $330.00 and gave the company an “outperform” rating in a report on Tuesday, February 11th. Eleven research analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, McDonald’s has a consensus rating of “Moderate Buy” and a consensus target price of $325.91.

Insider Buying and Selling

In related news, EVP Manuel Jm Steijaert sold 10,459 shares of the business’s stock in a transaction that occurred on Monday, February 24th. The stock was sold at an average price of $308.71, for a total transaction of $3,228,797.89. Following the completion of the sale, the executive vice president now directly owns 4,606 shares in the company, valued at approximately $1,421,918.26. The trade was a 69.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 939 shares of the business’s stock in a transaction that occurred on Monday, February 24th. The stock was sold at an average price of $305.00, for a total value of $286,395.00. Following the sale, the insider now owns 13,978 shares of the company’s stock, valued at $4,263,290. The trade was a 6.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 14,276 shares of company stock worth $4,419,385. 0.25% of the stock is owned by corporate insiders.

McDonald’s Company Profile

McDonald’s Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.