Brookmont Capital Management Cuts Position in McDonald’s Corporation $MCD

Brookmont Capital Management lessened its holdings in McDonald’s Corporation (NYSE:MCD) by 3.3% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 14,078 shares of the fast-food giant’s stock after selling 478 shares during the quarter. McDonald’s accounts for approximately 2.4% of Brookmont Capital Management’s investment portfolio, making the stock its 10th biggest holding. Brookmont Capital Management’s holdings in McDonald’s were worth $4,113,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in MCD. HFM Investment Advisors LLC bought a new stake in shares of McDonald’s in the first quarter worth $26,000. Nova Wealth Management Inc. acquired a new position in McDonald’s during the first quarter worth $26,000. Abound Financial LLC acquired a new position in McDonald’s during the first quarter worth $30,000. Redmont Wealth Advisors LLC acquired a new position in McDonald’s during the first quarter worth $31,000. Finally, Financial Gravity Asset Management Inc. acquired a new position in McDonald’s during the first quarter worth $31,000. Institutional investors own 70.29% of the company’s stock.

Insider Buying and Selling at McDonald’s

In related news, insider Joseph M. Erlinger sold 939 shares of the company’s stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total value of $281,221.11. Following the transaction, the insider directly owned 9,283 shares in the company, valued at approximately $2,780,165.67. This represents a 9.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CMO Edith Morgan Flatley sold 1,000 shares of the company’s stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $300.00, for a total transaction of $300,000.00. Following the completion of the transaction, the chief marketing officer owned 8,858 shares in the company, valued at $2,657,400. This trade represents a 10.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 7,402 shares of company stock valued at $2,273,407. 0.25% of the stock is currently owned by insiders.

McDonald’s Price Performance

NYSE:MCD opened at $300.81 on Thursday. McDonald’s Corporation has a one year low of $276.53 and a one year high of $326.32. The company has a market cap of $214.66 billion, a P/E ratio of 25.78, a P/E/G ratio of 3.09 and a beta of 0.51. The firm’s fifty day moving average price is $306.78 and its two-hundred day moving average price is $306.21.

McDonald’s (NYSE:MCD) last released its quarterly earnings data on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, beating the consensus estimate of $3.15 by $0.04. McDonald’s had a net margin of 32.21% and a negative return on equity of 225.52%. The firm had revenue of $6.84 billion for the quarter, compared to the consensus estimate of $6.68 billion. During the same period in the previous year, the company earned $2.97 earnings per share. The company’s quarterly revenue was up 5.4% on a year-over-year basis. As a group, equities research analysts expect that McDonald’s Corporation will post 12.25 earnings per share for the current year.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were paid a $1.77 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $7.08 annualized dividend and a dividend yield of 2.4%. McDonald’s’s dividend payout ratio is 60.67%.

Analysts Set New Price Targets

MCD has been the topic of a number of recent analyst reports. KeyCorp restated an “overweight” rating and set a $335.00 target price (up from $325.00) on shares of McDonald’s in a report on Thursday, August 7th. JPMorgan Chase & Co. boosted their target price on shares of McDonald’s from $305.00 to $310.00 and gave the stock an “overweight” rating in a report on Thursday, August 7th. Guggenheim restated a “neutral” rating on shares of McDonald’s in a report on Friday, August 8th. TD Securities restated a “hold” rating and set a $305.00 target price on shares of McDonald’s in a report on Thursday, June 5th. Finally, Argus downgraded shares of McDonald’s from a “buy” rating to a “hold” rating in a report on Friday, June 13th. Eleven analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $325.86.

McDonald’s Profile

McDonald’s Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.