PensionDanmark Pensionsforsikringsaktieselskab Sells 13,039 Shares of McDonald’s Corporation $MCD

PensionDanmark Pensionsforsikringsaktieselskab trimmed its position in shares of McDonald’s Corporation (NYSE:MCD) by 9.5% during the second quarter, HoldingsChannel reports. The institutional investor owned 124,355 shares of the fast-food giant’s stock after selling 13,039 shares during the period. PensionDanmark Pensionsforsikringsaktieselskab’s holdings in McDonald’s were worth $33,614,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the company. Peterson Wealth Services boosted its stake in shares of McDonald’s by 3,294.5% in the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock valued at $3,600,000 after purchasing an additional 11,432 shares in the last quarter. Harbour Investments Inc. increased its position in McDonald’s by 84.4% during the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant’s stock worth $10,853,000 after purchasing an additional 16,252 shares in the last quarter. Capital International Sarl increased its position in McDonald’s by 10.4% during the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant’s stock worth $19,639,000 after purchasing an additional 6,079 shares in the last quarter. North Dakota State Investment Board bought a new position in McDonald’s in the 4th quarter valued at approximately $7,493,000. Finally, Pittenger & Anderson Inc. boosted its position in McDonald’s by 21.9% in the fourth quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant’s stock valued at $6,567,000 after buying an additional 3,866 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald’s News Roundup

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

McDonald’s Stock Performance

Shares of NYSE:MCD opened at $276.05 on Friday. McDonald’s Corporation has a 52 week low of $260.96 and a 52 week high of $341.75. The firm has a market cap of $196.13 billion, a PE 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 (NYSE:MCD) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to the consensus estimate 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 quarterly revenue was up 3.7% on a year-over-year basis. During the same period in the prior year, the business posted $3.19 earnings per share. Sell-side analysts forecast that McDonald’s Corporation will post 12.86 EPS for the current year.

McDonald’s Announces Dividend

The business also recently declared 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 annualized dividend and a dividend yield of 2.7%. McDonald’s’s dividend payout ratio is presently 60.44%.

Insider Activity

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s 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 transaction, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 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. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 8,348 shares of company stock valued at $2,355,634. Insiders own 0.26% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have weighed in on MCD. Wells Fargo & Company decreased their target price on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday, July 16th. Citigroup raised their price objective on McDonald’s from $335.00 to $345.00 and gave the company a “buy” rating in a report on Wednesday. Barclays reduced their price objective on McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. Weiss Ratings cut McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. Finally, TD Cowen reiterated a “hold” rating on shares of McDonald’s in a research report on Tuesday. Sixteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $325.44.

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.