The Manufacturers Life Insurance Company Increases Holdings in McDonald’s Corporation $MCD

The Manufacturers Life Insurance Company increased its position in shares of McDonald’s Corporation (NYSE:MCD) by 11.7% in the first quarter, HoldingsChannel reports. The firm owned 498,537 shares of the fast-food giant’s stock after acquiring an additional 52,309 shares during the quarter. The Manufacturers Life Insurance Company’s holdings in McDonald’s were worth $154,940,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently bought and sold shares of the company. Norges Bank purchased a new position in McDonald’s during the 4th quarter worth approximately $2,890,438,000. Diamant Asset Management Inc. boosted its holdings in shares of McDonald’s by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock valued at $806,917,000 after acquiring an additional 2,587,986 shares during the last quarter. J. Stern & Co. LLP boosted its holdings in shares of McDonald’s by 9,867.5% in the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after acquiring an additional 2,515,515 shares during the last quarter. Viking Global Investors LP increased its stake in shares of McDonald’s by 171.7% in the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock worth $913,157,000 after acquiring an additional 1,974,998 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of McDonald’s by 49.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant’s stock worth $948,779,000 after acquiring an additional 1,033,041 shares during the period. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s Stock Performance

MCD opened at $272.82 on Wednesday. McDonald’s Corporation has a fifty-two week low of $260.96 and a fifty-two week high of $341.75. The company has a fifty day moving average of $275.60 and a two-hundred day moving average of $298.42. The stock has a market capitalization of $193.84 billion, a price-to-earnings ratio of 22.49, a PEG ratio of 2.91 and a beta of 0.41.

McDonald’s (NYSE:MCD) last posted its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same period in the prior year, the company posted $2.67 EPS. The company’s revenue for the quarter was up 9.4% on a year-over-year basis. On average, equities research analysts forecast that McDonald’s Corporation will post 12.86 earnings per share for the current year.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be issued a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald’s’s dividend payout ratio is presently 61.34%.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: UBS maintained a Buy rating despite lowering its price target from $365 to $340, implying substantial potential upside from recent levels. The target reduction reflects a more cautious outlook, but the continued Buy rating provides a positive signal. UBS McDonald’s price target report
• Positive Sentiment: McDonald’s affirmed its quarterly dividend of $1.86 per share, payable September 16. Its long record of annual dividend increases may attract income-oriented investors, particularly with the stock trading well below its 52-week high. McDonald’s dividend and valuation analysis
• Positive Sentiment: Wall Street’s average price targets remain materially above the current share price, with some analysts viewing the pullback as a buying opportunity if McDonald’s can stabilize sales and restore growth. McDonald’s near 52-week low analysis

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Rothschild & Co Redburn upgraded shares of McDonald’s from a “sell” rating to a “neutral” rating and boosted their target price for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Tigress Financial increased their price target on McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a research report on Friday, July 17th. JPMorgan Chase & Co. cut their price target on McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research report on Monday, May 11th. Robert W. Baird set a $305.00 price objective on McDonald’s in a research note on Thursday, May 7th. Finally, Cfra raised McDonald’s to a “buy” rating in a report on Friday, May 8th. Fifteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $333.32.

Insider Transactions at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The stock was 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 directly owned 6,268 shares in the company, valued at $1,744,760.48. The trade was 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 link. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction that occurred 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 directly owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 8,348 shares of company stock valued at $2,355,634 in the last ninety days. 0.26% of the stock is currently owned by insiders.

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.