Dynamic Advisor Solutions LLC Sells 1,917 Shares of McDonald’s Corporation $MCD

Dynamic Advisor Solutions LLC lowered its holdings in McDonald’s Corporation (NYSE:MCD) by 12.3% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 13,672 shares of the fast-food giant’s stock after selling 1,917 shares during the quarter. Dynamic Advisor Solutions LLC’s holdings in McDonald’s were worth $3,696,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of MCD. Willner & Heller LLC grew its stake in shares of McDonald’s by 5.1% in the second quarter. Willner & Heller LLC now owns 1,750 shares of the fast-food giant’s stock worth $473,000 after acquiring an additional 85 shares during the period. Baron Wealth Management LLC raised its holdings in shares of McDonald’s by 20.1% during the second quarter. Baron Wealth Management LLC now owns 1,976 shares of the fast-food giant’s stock valued at $534,000 after purchasing an additional 331 shares during the last quarter. Grant Private Wealth Management Inc lifted its position in McDonald’s by 20.8% during the second quarter. Grant Private Wealth Management Inc now owns 2,877 shares of the fast-food giant’s stock valued at $778,000 after purchasing an additional 496 shares during the period. Harbor Investment Advisory LLC lifted its position in McDonald’s by 1.0% during the second quarter. Harbor Investment Advisory LLC now owns 4,019 shares of the fast-food giant’s stock valued at $1,086,000 after purchasing an additional 38 shares during the period. Finally, Canandaigua National Bank & Trust Co. purchased a new stake in McDonald’s in the second quarter worth approximately $9,102,000. 70.29% of the stock is owned by institutional investors.

McDonald’s Trading Up 0.7%

Shares of MCD stock opened at $276.05 on Friday. McDonald’s Corporation has a 12 month low of $260.96 and a 12 month high of $341.75. The stock has a market cap of $196.13 billion, a P/E ratio of 22.42, a P/E/G ratio of 2.94 and a beta of 0.41. The company has a 50 day simple moving average of $274.14 and a two-hundred day simple moving average of $296.58.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 512.80%. The business had revenue of $7.10 billion for the quarter, compared to analysts’ expectations of $7.13 billion. During the same quarter last year, the company posted $3.19 EPS. The company’s revenue was up 3.7% compared to the same quarter last year. As a group, equities analysts forecast that McDonald’s Corporation will post 12.86 earnings per share for the current year.

McDonald’s Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be given a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald’s’s payout ratio is 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 value of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 8,348 shares of company stock valued at $2,355,634 in the last three months. 0.26% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. Erste Group Bank downgraded shares of McDonald’s from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Evercore set a $320.00 price target on McDonald’s in a report on Thursday, July 23rd. Barclays dropped 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. Mizuho cut their price objective on McDonald’s from $300.00 to $290.00 and set a “neutral” rating for the company in a report on Friday, July 31st. Finally, Royal Bank Of Canada reduced their price objective on McDonald’s from $305.00 to $295.00 and set a “sector perform” rating for the company in a research report on Wednesday. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, McDonald’s currently has a consensus rating of “Moderate Buy” and an average target price of $325.44.

More McDonald’s News

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 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.