Payden & Rygel Sells 3,600 Shares of McDonald’s Corporation $MCD

Payden & Rygel lowered its position in shares of McDonald’s Corporation (NYSE:MCD) by 8.6% in the second quarter, Holdings Channel reports. The firm owned 38,300 shares of the fast-food giant’s stock after selling 3,600 shares during the period. Payden & Rygel’s holdings in McDonald’s were worth $10,353,000 at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. Ascentis Wealth Management LLC increased its position in shares of McDonald’s by 4,008.8% during the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock worth $22,768,000 after acquiring an additional 82,180 shares in the last quarter. Borer Denton & Associates Inc. lifted its position in McDonald’s by 16.9% in the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock valued at $3,746,000 after acquiring an additional 2,000 shares in the last quarter. Peterson Wealth Services boosted its stake in 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 worth $3,600,000 after purchasing an additional 11,432 shares during the period. Harbour Investments Inc. boosted its stake in McDonald’s by 84.4% in 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 during the period. Finally, Capital International Sarl increased its holdings 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. Institutional investors own 70.29% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have issued reports on MCD shares. Royal Bank Of Canada dropped their price target on McDonald’s from $305.00 to $295.00 and set a “sector perform” rating on the stock in a research note on Wednesday, August 5th. Weiss Ratings downgraded McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. Evercore set a $320.00 target price on McDonald’s in a research note on Thursday, July 23rd. Guggenheim reduced their price target on McDonald’s from $320.00 to $290.00 and set a “neutral” rating for the company in a research report on Wednesday, August 5th. Finally, Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and raised their price target for the stock from $260.00 to $306.00 in a research note on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $325.44.

More McDonald’s News

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

• Positive Sentiment: McDonald’s valuation has become more attractive after its decline, with one bullish estimate implying substantial upside toward the Wall Street consensus target. However, analysts say investors may need to wait for clearer evidence of improved execution. Is McDonald’s a Buy Today as Lower Valuation Meets Execution Risk?
• Positive Sentiment: A workforce scheduling and transportation app reportedly helped one McDonald’s franchise avoid missed shifts and save about $35,000 per month. Wider adoption could improve staffing reliability and restaurant-level margins. Missed shifts were costly to this McDonald’s. An app has fixed the problem
• Positive Sentiment: Limited-time promotions, including Hello Kitty–Godzilla Happy Meals, new fall beverages and an afternoon-focused menu strategy aimed at Starbucks could support traffic and increase customer occasions. McDonald’s Takes Direct Aim at Starbucks
• Neutral Sentiment: McDonald’s latest quarterly earnings beat expectations on EPS, helped by franchised operations, but revenue slightly missed estimates. Investors remain focused on whether cost controls and franchise strength can offset softer U.S. demand. McDonald’s Q2 Earnings Beat Puts U.S. Traffic and Margins in Focus
• Negative Sentiment: Numerator data showed sales among low-income customers fell 2.4% in the latest quarter, indicating that prior price increases may be pushing budget-conscious diners toward alternatives. McDonald’s is losing ground to rivals like Burger King with a key customer group
• Negative Sentiment: Weak U.S. traffic, value-offer execution problems, rising beef and operating costs, and competition from Burger King are creating pressure on sales and margins. The broader economic concern flagged by restaurant and consumer-goods executives adds to the risk. Burger King is taking a bite out of McDonald’s lunch

Insider Activity at McDonald’s

In other news, insider Joseph M. Erlinger sold 5,252 shares of the company’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 transaction of $1,493,248.64. Following the sale, the insider owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred 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 directly owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 8,348 shares of company stock worth $2,355,634 in the last ninety days. Insiders own 0.26% of the company’s stock.

McDonald’s Price Performance

McDonald’s stock opened at $267.15 on Wednesday. The firm has a 50-day moving average of $273.27 and a 200-day moving average of $294.49. McDonald’s Corporation has a one year low of $260.96 and a one year high of $341.75. The company has a market cap of $189.04 billion, a price-to-earnings ratio of 21.70, a P/E/G ratio of 3.05 and a beta of 0.41.

McDonald’s (NYSE:MCD) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The business had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same quarter in the previous year, the business earned $3.19 earnings per share. McDonald’s’s quarterly revenue was up 3.7% on a year-over-year basis. As a group, sell-side analysts expect that McDonald’s Corporation will post 12.88 earnings per share for the current year.

McDonald’s Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio (DPR) is currently 60.44%.

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.