NewEdge Advisors LLC Grows Stock Position in McDonald’s Corporation $MCD

NewEdge Advisors LLC lifted its holdings in McDonald’s Corporation (NYSE:MCD) by 77.4% during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 262,557 shares of the fast-food giant’s stock after purchasing an additional 114,529 shares during the period. NewEdge Advisors LLC’s holdings in McDonald’s were worth $81,600,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in MCD. Hamilton Point Investment Advisors LLC boosted its stake in shares of McDonald’s by 1.8% during the 4th quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant’s stock worth $535,000 after acquiring an additional 31 shares during the last quarter. Encompass More Asset Management grew its position in shares of McDonald’s by 1.5% during the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock valued at $648,000 after acquiring an additional 32 shares during the period. Richmond Investment Services LLC increased its stake in shares of McDonald’s by 1.4% in the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock worth $696,000 after purchasing an additional 32 shares in the last quarter. Papamarkou Wellner Asset Management inc. increased its stake in shares of McDonald’s by 0.4% in the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant’s stock worth $2,692,000 after purchasing an additional 32 shares in the last quarter. Finally, Physician Wealth Advisors Inc. raised its holdings in McDonald’s by 1.6% in the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant’s stock worth $642,000 after purchasing an additional 33 shares during the period. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s Stock Performance

MCD opened at $276.05 on Friday. The stock has a market cap of $196.13 billion, a price-to-earnings ratio of 22.42, a price-to-earnings-growth ratio of 2.94 and a beta of 0.41. The firm’s fifty day moving average is $274.14 and its 200 day moving average is $296.58. McDonald’s Corporation has a fifty-two week low of $260.96 and a fifty-two week high of $341.75.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 512.80% and a net margin of 31.72%.McDonald’s’s revenue for the quarter was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $3.19 EPS. On average, equities research analysts predict that McDonald’s Corporation will post 12.86 earnings per share for the current year.

McDonald’s Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be paid a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. McDonald’s’s dividend payout ratio is 60.44%.

More McDonald’s News

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

• Positive Sentiment: Quarterly profit exceeded expectations. McDonald’s reported adjusted earnings of $3.38 per share, above the $3.32 consensus estimate, while revenue rose 3.7% year over year to $7.10 billion. The earnings beat and 31.7% net margin provide support for the stock. McDonald’s posts strong second quarter profit, names new leader for US market
• Positive Sentiment: Analyst support and income appeal remain intact. BTIG reaffirmed its Buy rating with a $350 price target, while the stock’s dividend and consensus Moderate Buy view may attract investors after the recent weakness. BTIG rating reaffirmed
• Positive Sentiment: Management is taking corrective action. McDonald’s appointed a new U.S. leader and is reviewing value offers, digital promotions, restaurant workloads and marketing execution. Stronger international performance could help offset domestic softness. MCD Q2 Earnings Call Flags U.S. Execution Gaps
• Neutral Sentiment: Price targets were reduced but remain above the current level. Morgan Stanley, RBC and Baird lowered their targets to $319, $295 and $285, respectively, citing a more cautious near-term outlook. Their ratings range from Equal Weight to Neutral. Analyst price-target changes
• Negative Sentiment: U.S. growth remains the central concern. Domestic comparable sales rose only 0.8% in the second quarter, and management acknowledged that the current value menu is too complicated and that reduced digital discounts have hurt traffic. Lower-income customers are also spending less at McDonald’s. McDonald’s Looks to Fix a Value Misfire
• Negative Sentiment: Competitive pressure is increasing. Burger King is gaining U.S. sales momentum after revamping its Whopper, while McDonald’s expansion toward 50,000 restaurants is taking longer than planned because of economic conditions. Burger King’s US sales surge while McDonald’s growth flails

Insider Activity

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction dated 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 sale, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,348 shares of company stock valued at $2,355,634 in the last quarter. 0.26% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the company. KeyCorp lowered their target price on McDonald’s from $315.00 to $305.00 and set an “overweight” rating on the stock in a research report on Wednesday. Citigroup raised their price objective on McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a research note on Wednesday. Cfra raised McDonald’s to a “buy” rating in a research report on Friday, May 8th. Evercore set a $320.00 price objective on McDonald’s in a research report on Thursday, July 23rd. Finally, JPMorgan Chase & Co. cut their price objective on McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a research note on Monday, May 11th. Sixteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $325.44.

McDonald’s Company Profile

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.