PNC Financial Services Group Inc. Lowers Stock Position in McDonald’s Corporation $MCD

PNC Financial Services Group Inc. cut its stake in shares of McDonald’s Corporation (NYSE:MCD) by 1.4% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 2,613,399 shares of the fast-food giant’s stock after selling 36,808 shares during the quarter. PNC Financial Services Group Inc. owned approximately 0.37% of McDonald’s worth $812,218,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in MCD. Your Advocates Ltd. LLP purchased a new stake in shares of McDonald’s in the fourth quarter worth $27,000. Park Place Capital Corp raised its position in shares of McDonald’s by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after purchasing an additional 45 shares during the period. IFC & Insurance Marketing Inc. bought a new stake in shares of McDonald’s during the 4th quarter valued at $29,000. Abound Financial LLC purchased a new position in shares of McDonald’s during the 4th quarter valued at $30,000. Finally, Purpose Unlimited Inc. purchased a new position in shares of McDonald’s during the 4th quarter valued at $31,000. 70.29% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

MCD has been the subject of a number of analyst reports. BTIG Research reiterated a “buy” rating and issued a $370.00 price target on shares of McDonald’s in a research note on Thursday, May 7th. Deutsche Bank Aktiengesellschaft set a $325.00 price objective on McDonald’s in a research report on Thursday, July 9th. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of McDonald’s in a research note on Monday, June 22nd. Citigroup cut their target price on McDonald’s from $375.00 to $335.00 and set a “buy” rating for the company in a research report on Wednesday, July 15th. Finally, Wells Fargo & Company decreased their target price on McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday, July 16th. Fifteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, McDonald’s presently has an average rating of “Moderate Buy” and an average target price of $336.32.

Trending Headlines about McDonald’s

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

• Positive Sentiment: Several bullish commentaries argue McDonald’s recent weakness may be an opportunity, citing improving top- and bottom-line growth, international resilience, and compressed earnings multiples that could make the stock more attractive. McDonald’s Sell-Off Is Your Opportunity
• Positive Sentiment: Another analyst upgrade says McDonald’s consistency deserves a higher multiple, pointing to faster recent revenue and earnings growth as evidence of a potential turnaround. McDonald’s: Consistency Deserves A Better Multiple (Rating Upgrade)
• Positive Sentiment: Menu innovation remains a supportive storyline, with McDonald’s rolling out new breakfast biscuits, a honey brown butter biscuit, and a Caesar menu that could help drive traffic and keep the brand in the conversation. McDonald’s Just Added 2 New Biscuits To Their Breakfast Menu
• Neutral Sentiment: Recent consumer-interest articles and product reviews highlight new limited-time menu items, but these are not yet proven to materially change earnings expectations. Review: McDonald’s Caesar sauce is the tangy menu addition we didn’t know we needed
• Negative Sentiment: Zacks noted that McDonald’s stock fell while the broader market improved, reinforcing the view that investors are rotating away from the name for now. McDonald’s (MCD) Stock Declines While Market Improves: Some Information for Investors
• Negative Sentiment: Bearish coverage says McDonald’s still may not be cheap enough despite the pullback, suggesting the market remains concerned about upside versus risk. McDonald’s: Still Not Good Enough

McDonald’s Stock Down 1.5%

Shares of MCD stock opened at $263.76 on Wednesday. The company’s fifty day simple moving average is $276.71 and its two-hundred day simple moving average is $299.70. McDonald’s Corporation has a 52 week low of $263.65 and a 52 week high of $341.75. The stock has a market cap of $187.40 billion, a P/E ratio of 21.74, a PEG ratio of 2.87 and a beta of 0.41.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share 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 firm had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same quarter last year, the business posted $2.67 earnings per share. The business’s quarterly revenue was up 9.4% compared to the same quarter last year. On average, analysts anticipate that McDonald’s Corporation will post 12.86 EPS for the current fiscal year.

McDonald’s Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were paid a dividend of $1.86 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. McDonald’s’s dividend payout ratio is presently 61.34%.

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 stock was 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 $1,744,760.48. This trade represents a 30.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value 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. The trade was a 40.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 8,681 shares of company stock valued at $2,456,440 in the last 90 days. 0.26% of the stock is currently owned by company insiders.

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.