Madison Asset Management LLC Buys 3,016 Shares of McDonald’s Corporation $MCD

Madison Asset Management LLC lifted its stake in shares of McDonald’s Corporation (NYSE:MCD) by 7.3% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 44,382 shares of the fast-food giant’s stock after purchasing an additional 3,016 shares during the period. Madison Asset Management LLC’s holdings in McDonald’s were worth $13,793,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of MCD. Vanguard Group Inc. increased its position in McDonald’s by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock worth $22,112,675,000 after buying an additional 703,458 shares during the last quarter. State Street Corp grew its stake in shares of McDonald’s by 2.7% during the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock worth $10,997,789,000 after acquiring an additional 959,140 shares during the period. Geode Capital Management LLC grew its stake in shares of McDonald’s by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock worth $5,195,965,000 after acquiring an additional 76,090 shares during the period. Price T Rowe Associates Inc. MD increased its holdings in McDonald’s by 3.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant’s stock worth $2,895,768,000 after acquiring an additional 277,617 shares during the last quarter. Finally, Norges Bank purchased a new stake in McDonald’s in the 4th quarter worth about $2,890,438,000. Institutional investors own 70.29% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have commented on MCD. Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and upped their price objective for the company from $260.00 to $306.00 in a report on Thursday, April 23rd. Morgan Stanley reduced their target price on shares of McDonald’s from $331.00 to $322.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 15th. Evercore set a $350.00 price target on shares of McDonald’s in a research report on Friday, May 8th. Tigress Financial upped their price target on shares of McDonald’s from $385.00 to $390.00 and gave the company a “buy” rating in a research note on Friday, July 17th. Finally, Erste Group Bank downgraded shares of McDonald’s from a “buy” rating to a “hold” rating in a report on Monday, April 27th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $336.32.

McDonald’s Stock Down 1.5%

Shares of NYSE MCD opened at $263.76 on Wednesday. The company has a market cap of $187.40 billion, a P/E ratio of 21.74, a P/E/G ratio of 2.87 and a beta of 0.41. McDonald’s Corporation has a 52 week low of $263.65 and a 52 week high of $341.75. The business has a 50-day simple moving average of $276.71 and a two-hundred day simple moving average of $299.70.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating the consensus estimate 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 analysts’ expectations of $6.47 billion. During the same period in the prior year, the business posted $2.67 earnings per share. The company’s revenue was up 9.4% on a year-over-year basis. Equities research analysts anticipate that McDonald’s Corporation will post 12.86 EPS for the current year.

McDonald’s Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were issued a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald’s’s dividend payout ratio is 61.34%.

More McDonald’s News

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

• Positive Sentiment: Several bullish commentaries argue McDonald’s recent weakness may be an opportunity, citing improving top- and bottom-line growth, international resilience, and compressed earnings multiples that could make the stock more attractive. McDonald’s Sell-Off Is Your Opportunity
• Positive Sentiment: Another analyst upgrade says McDonald’s consistency deserves a higher multiple, pointing to faster recent revenue and earnings growth as evidence of a potential turnaround. McDonald’s: Consistency Deserves A Better Multiple (Rating Upgrade)
• Positive Sentiment: Menu innovation remains a supportive storyline, with McDonald’s rolling out new breakfast biscuits, a honey brown butter biscuit, and a Caesar menu that could help drive traffic and keep the brand in the conversation. McDonald’s Just Added 2 New Biscuits To Their Breakfast Menu
• Neutral Sentiment: Recent consumer-interest articles and product reviews highlight new limited-time menu items, but these are not yet proven to materially change earnings expectations. Review: McDonald’s Caesar sauce is the tangy menu addition we didn’t know we needed
• Negative Sentiment: Zacks noted that McDonald’s stock fell while the broader market improved, reinforcing the view that investors are rotating away from the name for now. McDonald’s (MCD) Stock Declines While Market Improves: Some Information for Investors
• Negative Sentiment: Bearish coverage says McDonald’s still may not be cheap enough despite the pullback, suggesting the market remains concerned about upside versus risk. McDonald’s: Still Not Good Enough

Insider Activity at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction on Thursday, May 28th. The shares were 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. The trade was a 30.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction 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 sale, the insider 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 sold a total of 8,681 shares of company stock worth $2,456,440 over the last quarter. 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.