Russell Investments Group Ltd. Buys 43,893 Shares of McDonald’s Corporation $MCD

Russell Investments Group Ltd. grew its position in McDonald’s Corporation (NYSE:MCD) by 9.6% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 501,944 shares of the fast-food giant’s stock after acquiring an additional 43,893 shares during the period. Russell Investments Group Ltd.’s holdings in McDonald’s were worth $153,681,000 as of its most recent filing with the SEC.

Several other hedge funds also recently modified their holdings of MCD. Vanguard Group Inc. grew its position in McDonald’s by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock worth $22,112,675,000 after acquiring an additional 703,458 shares during the last quarter. State Street Corp boosted its stake in shares of McDonald’s by 2.7% during the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after purchasing an additional 959,140 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of McDonald’s by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock valued at $5,195,965,000 after purchasing an additional 76,090 shares in the last quarter. Norges Bank acquired a new stake in shares of McDonald’s during the fourth quarter valued at about $2,890,438,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of McDonald’s by 7.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant’s stock worth $1,699,314,000 after purchasing an additional 384,762 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts recently issued reports on MCD shares. Morgan Stanley set a $331.00 price objective on shares of McDonald’s in a report on Friday, May 8th. Royal Bank Of Canada reduced their target price on shares of McDonald’s from $330.00 to $305.00 and set a “sector perform” rating on the stock in a report on Friday, May 8th. Evercore set a $350.00 price target on shares of McDonald’s in a research note on Friday, May 8th. Wells Fargo & Company cut their price target on shares of McDonald’s from $355.00 to $320.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Finally, Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and boosted their price objective for the stock from $260.00 to $306.00 in a research note on Thursday, April 23rd. Sixteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, McDonald’s has a consensus rating of “Moderate Buy” and a consensus target price of $336.26.

Key McDonald’s News

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

• Positive Sentiment: McDonald’s is bringing back its fried apple pie for America’s 250th birthday, a nostalgic limited-time item that could help drive traffic and sales while generating a lot of consumer buzz. AP News – McDonald’s is serving fried apple pie again for America’s 250th birthday
• Positive Sentiment: The company is also being highlighted for bringing back other fan-favorite menu items after decades away, reinforcing the view that McDonald’s is using nostalgia-based offerings to support customer engagement. Article – McDonald’s Is Bringing Back a Highly Requested Menu Item for the First Time in Over 30 Years
• Positive Sentiment: McDonald’s is testing expanded beverage options, including custom sodas, refreshers and Red Bull-based drinks, which could open a new source of incremental sales and improve ticket size. Yahoo Finance – McDonald’s 70-Year Coke Alliance Enters New Beverage Test
• Neutral Sentiment: Several stories focus on McDonald’s brand strength, including celebrity mentions and “coolest locations” lists, which are good for visibility but likely have limited direct impact on earnings. Article – Tina Fey Loves This McDonald’s Menu Item So Much, She Walked Down the Highway in Italy To Order It
• Neutral Sentiment: The company is also making operational changes, including rebuilding a classic Gahanna location with a modern look and altering drive-thru features, but these are more incremental than transformative. AOL – McDonald’s to demolish classic Gahanna location and rebuild it with modern look
• Negative Sentiment: One article about a possible $1 drive-thru fee and another criticizing the chain’s ice cream machine reliability could add to customer frustration and pressure sentiment, even if the financial impact is unclear. Article – Is McDonald’s adding a $1 fee to drive-thru orders? Customers want answers
• Negative Sentiment: Coverage that McCrispy Strips are being revamped after customer criticism suggests McDonald’s is responding to product complaints, which may weigh slightly on sentiment around menu execution. AOL – McDonald’s to Revamp McCrispy Strips After Customer Criticism

McDonald’s Trading Up 0.7%

Shares of McDonald’s stock opened at $287.99 on Wednesday. The business has a 50-day moving average price of $288.58 and a two-hundred day moving average price of $306.42. McDonald’s Corporation has a 1-year low of $271.85 and a 1-year high of $341.75. The company has a market cap of $204.62 billion, a P/E ratio of 23.74, a PEG ratio of 2.85 and a beta of 0.41.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the previous year, the business earned $2.67 EPS. The firm’s revenue was up 9.4% compared to the same quarter last year. Equities research analysts forecast that McDonald’s Corporation will post 12.93 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were paid a $1.86 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.6%. McDonald’s’s payout ratio is 61.34%.

Insider Activity at McDonald’s

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction 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 transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction 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 stock in a transaction 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 transaction, 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. Over the last three months, insiders sold 11,307 shares of company stock worth $3,262,622. 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.