Asset One Wealth Management LLC Purchases New Position in McDonald’s Corporation $MCD

Asset One Wealth Management LLC purchased a new stake in shares of McDonald’s Corporation (NYSE:MCD) in the 4th quarter, HoldingsChannel.com reports. The firm purchased 15,498 shares of the fast-food giant’s stock, valued at approximately $4,937,000. McDonald’s comprises approximately 0.7% of Asset One Wealth Management LLC’s holdings, making the stock its 28th largest holding.

Other institutional investors also recently bought and sold shares of the company. Norges Bank acquired a new stake in McDonald’s in the fourth quarter valued at approximately $2,890,438,000. J. Stern & Co. LLP grew its holdings in McDonald’s by 9,867.5% in the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after purchasing an additional 2,515,515 shares during the period. Viking Global Investors LP grew its holdings in McDonald’s by 171.7% in the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock valued at $913,157,000 after purchasing an additional 1,974,998 shares during the period. Franklin Resources Inc. grew its holdings in McDonald’s by 36.6% in the third quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant’s stock valued at $1,336,155,000 after purchasing an additional 1,179,244 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its holdings in McDonald’s by 111.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 2,071,296 shares of the fast-food giant’s stock valued at $629,446,000 after purchasing an additional 1,090,849 shares during the period. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about McDonald’s

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

• Positive Sentiment: McDonald’s is bringing back its fried apple pie after more than 30 years, a nostalgic, limited-time menu move that could support traffic and generate buzz with customers. AP News article
• Positive Sentiment: Other reports also note McDonald’s has been winning with value-oriented diners, which may help it hold up better than midtier restaurant chains as consumers trade down or seek familiar brands. Yahoo Finance article
• Neutral Sentiment: Coverage of McDonald’s reviving classic menu items, updating drive-thrus, and rebuilding older locations is mostly brand/operations news, with limited immediate impact on the stock. TheStreet article
• Neutral Sentiment: A Zacks note pointed out that MCD recently fell more than the broader market, but it did not identify a major new catalyst beyond the stock’s recent weakness. Zacks article
• Negative Sentiment: The biggest headwind is the market’s concern that restaurant spending is fragmenting, which could pressure midtier operators and keep sentiment cautious around consumer discretionary names like McDonald’s. Yahoo Finance article

McDonald’s Price Performance

Shares of NYSE:MCD opened at $284.16 on Thursday. The business’s 50 day moving average price is $288.07 and its 200-day moving average price is $306.22. The firm has a market capitalization of $201.90 billion, a PE ratio of 23.43, a P/E/G ratio of 2.87 and a beta of 0.41. McDonald’s Corporation has a 1 year low of $271.85 and a 1 year high of $341.75.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analyst estimates of $6.47 billion. During the same period in the previous year, the company posted $2.67 earnings per share. The business’s revenue was up 9.4% on a year-over-year basis. As a group, analysts expect that McDonald’s Corporation will post 12.93 earnings per share for the current year.

McDonald’s Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a dividend yield of 2.6%. McDonald’s’s payout ratio is presently 61.34%.

Analysts Set New Price Targets

Several analysts have commented on the company. Tigress Financial raised their price objective on McDonald’s from $360.00 to $385.00 and gave the company a “buy” rating in a report on Friday, March 6th. TD Cowen reissued a “hold” rating on shares of McDonald’s in a report on Friday, June 12th. Erste Group Bank lowered McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Robert W. Baird set a $305.00 price target on McDonald’s in a research note on Thursday, May 7th. Finally, Barclays lowered their price target on McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, McDonald’s currently has an average rating of “Moderate Buy” and an average price target of $336.26.

Insider Activity

In other news, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the transaction, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, the executive vice president directly owned 6,268 shares in the company, 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. In the last three months, insiders have sold 11,307 shares of company stock worth $3,262,622. Corporate insiders own 0.26% of the company’s stock.

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.