Fred Alger Management LLC Has $7.92 Million Holdings in McDonald’s Corporation $MCD

Fred Alger Management LLC cut its position in shares of McDonald’s Corporation (NYSE:MCD) by 7.6% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 26,057 shares of the fast-food giant’s stock after selling 2,129 shares during the quarter. Fred Alger Management LLC’s holdings in McDonald’s were worth $7,918,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Federated Hermes Inc. boosted its position in McDonald’s by 84.1% during the 2nd quarter. Federated Hermes Inc. now owns 141,775 shares of the fast-food giant’s stock worth $41,422,000 after acquiring an additional 64,757 shares during the period. Global X Japan Co. Ltd. increased its holdings in shares of McDonald’s by 236.7% in the 3rd quarter. Global X Japan Co. Ltd. now owns 6,502 shares of the fast-food giant’s stock valued at $1,976,000 after purchasing an additional 4,571 shares during the period. D.A. Davidson & CO. increased its holdings in shares of McDonald’s by 2.7% in the 3rd quarter. D.A. Davidson & CO. now owns 143,492 shares of the fast-food giant’s stock valued at $43,606,000 after purchasing an additional 3,774 shares during the period. Choreo LLC lifted its position in shares of McDonald’s by 1.7% in the second quarter. Choreo LLC now owns 58,515 shares of the fast-food giant’s stock worth $17,096,000 after purchasing an additional 954 shares in the last quarter. Finally, Regent Peak Wealth Advisors LLC acquired a new stake in shares of McDonald’s during the third quarter worth approximately $1,120,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.

McDonald’s Stock Performance

MCD opened at $326.79 on Tuesday. The company has a market cap of $232.15 billion, a PE ratio of 27.35, a price-to-earnings-growth ratio of 2.90 and a beta of 0.51. The stock has a 50-day moving average of $320.82 and a 200-day moving average of $311.61. McDonald’s Corporation has a 52-week low of $283.47 and a 52-week high of $341.75.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share for the quarter, beating analysts’ consensus estimates of $3.05 by $0.07. McDonald’s had a negative return on equity of 343.90% and a net margin of 31.85%.The business had revenue of $7.01 billion for the quarter, compared to the consensus estimate of $6.81 billion. During the same period last year, the business earned $2.83 EPS. The firm’s revenue was up 9.7% compared to the same quarter last year. On average, research analysts predict that McDonald’s Corporation will post 12.25 earnings per share for the current year.

McDonald’s Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd will be given a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, March 3rd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.3%. McDonald’s’s dividend payout ratio (DPR) is currently 62.26%.

More McDonald’s News

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

• Positive Sentiment: KeyBanc raised its price target and called out strong momentum in McDonald’s U.S. business — a direct analyst catalyst that supports upside expectations. KeyBanc Cites Strong Momentum in McDonald’s Corporation (MCD)’s Domestic Business
• Positive Sentiment: Several bullish pieces (Seeking Alpha, Seeking Alpha follow-ups, and Yahoo summaries of bullish theses) argue McDonald’s is still a structurally attractive holding thanks to scale, menu innovation and resilient margins. These reinforce buy-side interest. Three Reasons To Own McDonald’s Now
• Positive Sentiment: Company strategy milestones (franchising, digital/operational improvements highlighted in business press) are being framed as the “next big step” in McDonald’s post‑pandemic playbook — potentially supportive for long‑term sales and margins. McDonald’s Just Announced the Next Big Step In Its Post-Pandemic Strategy
• Neutral Sentiment: McValue 2.0 menu is getting attention as a traffic driver, but analysts warn McDonald’s current valuation leaves limited upside — positive for comps but mixed for shares. McDonald’s McValue 2.0 Menu Is Appetizing But Valuation Leaves Little Room For Upside
• Neutral Sentiment: Multiple consumer‑interest pieces (sauces, fries, Filet‑O‑Fish cheese) are being shared widely — good for brand engagement but unlikely to move the stock materially. How are McDonald’s Big Mac & Big Arch sauces different? Why McDonald’s Filet-O-Fish Always Has Crooked Cheese
• Negative Sentiment: Coverage noting Darden (DRI) and Restaurant Brands (QSR) outpacing McDonald’s highlights relative underperformance risk — investors may reallocate to higher‑growth peers. Why DRI And QSR Are Outpacing McDonald’s Stock
• Negative Sentiment: Barchart suggests the stock’s price targets have moved higher but the share price has been flat, making shorting out‑of‑the‑money puts an attractive trade — a signal that some market participants expect limited near‑term upside or downside risk. McDonald’s Stock Price Targets Are Higher – Shorting MCD Puts Works Here
• Negative Sentiment: Industry pieces on burger/commodity cost pressures (Burger King/Whopper coverage) flag margin risk for beef‑centric menu items — a potential headwind if input costs spike. McDonald’s and Burger King face whopper of a burger problem

Analyst Ratings Changes

A number of research analysts recently commented on MCD shares. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of McDonald’s in a research report on Wednesday, January 28th. Argus raised shares of McDonald’s from a “hold” rating to a “buy” rating and set a $380.00 target price for the company in a research note on Friday, February 13th. Tigress Financial boosted their price target on shares of McDonald’s from $360.00 to $385.00 and gave the company a “buy” rating in a report on Friday, March 6th. TD Cowen reaffirmed a “hold” rating and issued a $320.00 price target on shares of McDonald’s in a research note on Thursday, February 12th. Finally, Piper Sandler increased their price objective on McDonald’s from $323.00 to $325.00 and gave the stock a “neutral” rating in a report on Thursday, February 12th. Seventeen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $339.69.

Insider Activity

In other news, CEO Christopher J. Kempczinski sold 26,276 shares of the business’s stock in a transaction on Friday, February 13th. The shares were sold at an average price of $333.54, for a total value of $8,764,097.04. Following the completion of the sale, the chief executive officer directly owned 22,900 shares in the company, valued at approximately $7,638,066. The trade was a 53.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Jonathan Banner sold 6,201 shares of the company’s stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the sale, the executive vice president directly owned 2,291 shares of the company’s stock, valued at approximately $763,567.39. This represents a 73.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 71,657 shares of company stock valued at $23,722,204 over the last three months. Corporate insiders own 0.25% of the company’s stock.

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.