Stephens Inc. AR Raises Holdings in McDonald’s Corporation $MCD

Stephens Inc. AR boosted its position in McDonald’s Corporation (NYSE:MCD) by 2.6% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 72,438 shares of the fast-food giant’s stock after purchasing an additional 1,843 shares during the quarter. Stephens Inc. AR’s holdings in McDonald’s were worth $22,761,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Your Advocates Ltd. LLP acquired a new stake in McDonald’s in the 4th quarter valued at about $27,000. Park Place Capital Corp grew its position in shares of McDonald’s by 95.7% in the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after purchasing an additional 45 shares in the last quarter. IFC & Insurance Marketing Inc. acquired a new stake in shares of McDonald’s in the fourth quarter valued at approximately $29,000. Abound Financial LLC purchased a new position in McDonald’s during the fourth quarter worth approximately $30,000. Finally, DecisionPoint Financial LLC boosted its stake in McDonald’s by 1,616.7% during the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock worth $31,000 after buying an additional 97 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s stock was lifted by a UBS note highlighting it as an attractive defensive dividend name, helping support the shares as investors rotate toward stable cash-generating companies. Why McDonald’s (MCD) Stock Is Up Today
• Positive Sentiment: McDonald’s continues to appeal to income investors after its latest quarterly dividend, reinforcing its reputation as one of the most reliable dividend payers in the Dow. Despite Franchisees Struggling, McDonald’s Dividend Keeps Rising
• Positive Sentiment: New menu and promotional chatter, including Happy Meal tie-ins, free fries offers, and added chicken items, could help drive customer engagement and traffic. BT21 Toys Teases Coming To McDonald’s Happy Meals On July 14
• Neutral Sentiment: McDonald’s is also getting broader media attention around its brand history and restaurant expansion plans, but these items are not likely to move the stock much on their own. The McDonald’s Big Mac jingle from the mid ’70s that still lives in our heads
• Neutral Sentiment: McDonald’s hired a new development executive to support its NEXT strategy, which signals execution progress but is still more of a long-term operating update than an immediate stock catalyst. McDonald’s taps Raising Cane’s vet to lead development
• Negative Sentiment: A Trefis report said McDonald’s is facing a real risk from trying to win over budget-conscious customers, with franchisee strain from inflation and weak consumer sentiment weighing on the system. The Real Risk Squeezing McDonald’s Stock
• Negative Sentiment: Another recent analysis said MCD is near 52-week lows because of margin pressure at franchisees and softer foot traffic, which continues to limit enthusiasm despite the dividend appeal. Should You Buy McDonald’s (MCD) At 52-Week Lows

McDonald’s Trading Down 0.1%

NYSE MCD opened at $280.48 on Monday. The stock has a fifty day simple moving average of $280.25 and a 200-day simple moving average of $303.11. The stock has a market cap of $199.29 billion, a PE ratio of 23.12, a P/E/G ratio of 2.80 and a beta of 0.41. McDonald’s Corporation has a twelve month low of $264.53 and a twelve month high of $341.75.

McDonald’s (NYSE:MCD) last posted its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating analysts’ consensus estimates of $2.74 by $0.09. The company had revenue of $6.52 billion for the quarter, compared to analysts’ expectations of $6.47 billion. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. McDonald’s’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.67 earnings per share. Research analysts predict that McDonald’s Corporation will post 12.93 EPS for the current year.

McDonald’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were issued a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. The ex-dividend date was Tuesday, June 2nd. McDonald’s’s dividend payout ratio is currently 61.34%.

Insider Buying and Selling

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s 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 transaction, the insider owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% 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 11,307 shares of company stock valued at $3,262,622 in the last ninety days. 0.26% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages have issued reports on MCD. Wells Fargo & Company dropped their target price on McDonald’s from $355.00 to $320.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Weiss Ratings lowered shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. KeyCorp cut their price objective on shares of McDonald’s from $330.00 to $315.00 and set an “overweight” rating for the company in a research report on Monday, June 29th. TD Cowen reaffirmed a “hold” rating on shares of McDonald’s in a research note on Friday, June 12th. Finally, Sanford C. Bernstein reiterated a “market perform” rating on shares of McDonald’s in a report on Monday, June 22nd. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $335.70.

About McDonald’s

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.