Interval Partners LP Takes $22.53 Million Position in McDonald’s Corporation $MCD

Interval Partners LP acquired a new stake in shares of McDonald’s Corporation (NYSE:MCD) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm acquired 73,725 shares of the fast-food giant’s stock, valued at approximately $22,533,000.

A number of other hedge funds also recently made changes to their positions in MCD. Brighton Jones LLC raised its stake in shares of McDonald’s by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock valued at $2,692,000 after purchasing an additional 1,649 shares during the period. Revolve Wealth Partners LLC raised its stake in shares of McDonald’s by 2.8% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant’s stock valued at $563,000 after purchasing an additional 52 shares during the period. Sivia Capital Partners LLC raised its stake in shares of McDonald’s by 11.4% during the second quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant’s stock valued at $589,000 after purchasing an additional 206 shares during the period. United Bank boosted its holdings in McDonald’s by 6.0% in the second quarter. United Bank now owns 8,102 shares of the fast-food giant’s stock valued at $2,367,000 after purchasing an additional 459 shares during the last quarter. Finally, Schnieders Capital Management LLC. boosted its holdings in McDonald’s by 2.5% in the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant’s stock valued at $3,780,000 after purchasing an additional 312 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s Trading Down 1.3%

Shares of NYSE:MCD opened at $284.16 on Thursday. The company has a fifty day simple moving average of $288.07 and a 200 day simple moving average of $306.22. The firm has a market cap of $201.90 billion, a PE ratio of 23.43, a price-to-earnings-growth ratio of 2.87 and a beta of 0.41. McDonald’s Corporation has a 12-month low of $271.85 and a 12-month high of $341.75.

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

McDonald’s Announces Dividend

The business also recently declared 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 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date was Tuesday, June 2nd. McDonald’s’s payout ratio is 61.34%.

Insiders Place Their Bets

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’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 completion of the sale, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s 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 completion of the sale, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 11,307 shares of company stock valued at $3,262,622. Insiders own 0.26% of the company’s stock.

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 after more than 30 years, a nostalgic, limited-time menu move that could support traffic and generate buzz with customers. AP News article
• Positive Sentiment: Other reports also note McDonald’s has been winning with value-oriented diners, which may help it hold up better than midtier restaurant chains as consumers trade down or seek familiar brands. Yahoo Finance article
• Neutral Sentiment: Coverage of McDonald’s reviving classic menu items, updating drive-thrus, and rebuilding older locations is mostly brand/operations news, with limited immediate impact on the stock. TheStreet article
• Neutral Sentiment: A Zacks note pointed out that MCD recently fell more than the broader market, but it did not identify a major new catalyst beyond the stock’s recent weakness. Zacks article
• Negative Sentiment: The biggest headwind is the market’s concern that restaurant spending is fragmenting, which could pressure midtier operators and keep sentiment cautious around consumer discretionary names like McDonald’s. Yahoo Finance article

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on MCD shares. Robert W. Baird set a $305.00 price target on McDonald’s in a report on Thursday, May 7th. Tigress Financial increased their price target on McDonald’s from $360.00 to $385.00 and gave the company a “buy” rating in a report on Friday, March 6th. JPMorgan Chase & Co. reduced their price target on McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a report on Monday, May 11th. Royal Bank Of Canada dropped their price target on shares of McDonald’s from $330.00 to $305.00 and set a “sector perform” rating for the company in a research note on Friday, May 8th. Finally, Erste Group Bank lowered shares of McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, McDonald’s has an average rating of “Moderate Buy” and a consensus price target of $336.26.

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.