Andra AP fonden Reduces Holdings in McDonald’s Corporation $MCD

Andra AP fonden reduced its position in McDonald’s Corporation (NYSE:MCD) by 5.9% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 82,011 shares of the fast-food giant’s stock after selling 5,160 shares during the period. Andra AP fonden’s holdings in McDonald’s were worth $22,168,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Abound Financial LLC bought a new position in McDonald’s during the 4th quarter valued at $30,000. Purpose Unlimited Inc. acquired a new position in McDonald’s in the fourth quarter worth about $31,000. GKV Capital Management Co. Inc. bought a new stake in McDonald’s in the first quarter valued at about $33,000. Merkkuri Wealth Advisors LLC bought a new stake in McDonald’s in the first quarter valued at about $43,000. Finally, POM Investment Strategies LLC raised its stake in McDonald’s by 46.2% during the second quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock valued at $47,000 after buying an additional 55 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald’s Price Performance

Shares of NYSE MCD traded up $3.76 during mid-day trading on Tuesday, hitting $251.64. The company had a trading volume of 2,386,045 shares, compared to its average volume of 4,012,262. The stock has a market cap of $178.07 billion, a price-to-earnings ratio of 20.44, a PEG ratio of 2.68 and a beta of 0.41. The firm’s 50 day simple moving average is $264.49 and its two-hundred day simple moving average is $282.91. McDonald’s Corporation has a 12 month low of $246.52 and a 12 month high of $341.75.

McDonald’s (NYSE:MCD) last posted 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. The company had revenue of $7.10 billion for the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The firm’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same period last year, the business posted $3.19 earnings per share. Equities analysts forecast that McDonald’s Corporation will post 12.88 earnings per share for the current year.

McDonald’s Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be given a $1.93 dividend. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 annualized dividend and a yield of 3.1%. McDonald’s’s payout ratio is currently 60.44%.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s remains an attractive income investment after reaching 50 consecutive years of dividend increases. The quarterly dividend was raised 4% to $1.93 per share, or $7.72 annually, supporting a forward yield above 3% at recent prices. McDonald’s Becomes a Dividend King
• Positive Sentiment: One bullish analysis argues that the selloff has created valuation upside, citing an estimated intrinsic value of $309.29, largely intact earnings expectations, a discounted multiple and efforts to reset U.S. value offerings and improve franchisee alignment. McDonald’s Stock Selloff Is Hiding an Even Better Setup
• Neutral Sentiment: The limited-time Global Favorites menu and the returning Monopoly promotion could support customer engagement and traffic, but neither is likely to materially change near-term earnings without evidence of sustained sales improvement. McDonald’s Global Favorites Menu
• Neutral Sentiment: Management says customers using GLP-1 medications are still visiting McDonald’s, increasingly choosing smaller portions such as Happy Meals. This may preserve visits but could pressure average transaction values unless McDonald’s successfully adapts its menu. McDonald’s CEO Discusses GLP-1 Users
• Negative Sentiment: Investor attention remains focused on disappointing U.S. performance and execution challenges. Investors will want measurable targets and timelines at the investor day; vague initiatives or additional discounting without traffic improvement could keep pressure on the stock. McDonald’s Investor Day Expectations
• Negative Sentiment: Recent comparisons with Restaurant Brands highlight stronger competitor earnings growth and Burger King momentum, increasing pressure on McDonald’s to demonstrate that its strategy can reverse slowing sales. McDonald’s vs. Restaurant Brands

Analysts Set New Price Targets

A number of brokerages have recently weighed in on MCD. Sanford C. Bernstein reiterated a “market perform” rating and issued a $295.00 price target on shares of McDonald’s in a report on Wednesday, August 5th. BTIG Research reaffirmed a “buy” rating and issued a $350.00 price objective on shares of McDonald’s in a report on Wednesday, September 16th. BMO Capital Markets reiterated an “outperform” rating on shares of McDonald’s in a research note on Monday. Needham & Company LLC reissued a “buy” rating on shares of McDonald’s in a report on Monday. Finally, Seaport Research Partners began coverage on shares of McDonald’s in a research report on Wednesday, September 16th. They issued a “neutral” rating on the stock. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, McDonald’s has a consensus rating of “Moderate Buy” and an average target price of $317.04.

McDonald’s Company Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.