Diversified Management Inc. Reduces Stake in McDonald’s Corporation $MCD

Diversified Management Inc. reduced its holdings in McDonald’s Corporation (NYSE:MCD) by 35.9% during the second quarter, Holdings Channel.com reports. The institutional investor owned 3,674 shares of the fast-food giant’s stock after selling 2,062 shares during the quarter. Diversified Management Inc.’s holdings in McDonald’s were worth $993,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Norges Bank purchased a new stake in McDonald’s in the fourth quarter worth $2,890,438,000. Diamant Asset Management Inc. boosted its holdings in McDonald’s by 30,979.0% in the first 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 in the last quarter. J. Stern & Co. LLP increased its position in McDonald’s by 9,867.5% during 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 purchasing an additional 2,515,515 shares during the period. Viking Global Investors LP increased its position in McDonald’s by 171.7% during the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock valued at $913,157,000 after purchasing an additional 1,974,998 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its position in McDonald’s by 49.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant’s stock valued at $948,779,000 after purchasing an additional 1,033,041 shares during the period. 70.29% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at McDonald’s

In related news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the sale, the executive vice president owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 8,348 shares of company stock worth $2,355,634. 0.26% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

MCD has been the subject of several research analyst reports. Deutsche Bank Aktiengesellschaft raised their target price on shares of McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Morgan Stanley reduced their price target on shares of McDonald’s from $322.00 to $319.00 and set an “equal weight” rating on the stock in a research report on Wednesday, August 5th. Robert W. Baird decreased their price target on shares of McDonald’s from $305.00 to $285.00 and set a “neutral” rating for the company in a research note on Wednesday, August 5th. UBS Group set a $305.00 price target on shares of McDonald’s in a research note on Wednesday, August 5th. Finally, TD Cowen restated a “hold” rating on shares of McDonald’s in a report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat, McDonald’s has a consensus rating of “Moderate Buy” and an average target price of $325.44.

McDonald’s News Summary

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

• Positive Sentiment: McDonald’s will begin selling a Red Bull Dragonberry Energizer on Aug. 17, along with a new “dirty soda,” marking its first entry into energy drinks. The move could attract younger customers, increase beverage sales and diversify the menu. McDonald’s is getting into the energy game with Red Bull
• Positive Sentiment: A Hello Kitty and Godzilla/Kaiju Happy Meal promotion is scheduled to launch Aug. 18. The collectible toys may support near-term traffic and family visits, although the financial impact is likely limited. McDonald’s Hello Kitty and Godzilla crossover arrives August 18
• Positive Sentiment: McDonald’s USA promoted longtime employee Patrick Gerber to chief restaurant officer. His mandate to improve restaurant operations and standards could help address execution issues in the U.S. McDonald’s USA appoints chief restaurant officer
• Neutral Sentiment: The company still expects substantial unit growth, including about 2,600 openings in 2026, but has pushed its 50,000-store target to 2028. Management describes the delay as disciplined expansion amid softer U.S. demand. McDonald’s pushes 50,000-store goal to 2028
• Negative Sentiment: Recent analysis highlights slowing U.S. comparable sales, competitive pressure from a strengthening Burger King, and management’s acknowledgment of execution missteps. Concerns that value promotions are no longer sufficient could weigh on traffic and margins. McDonald’s faces fresh U.S. growth questions
• Negative Sentiment: Erste Group Bank lowered its 2027 EPS forecast to $14.00 from $14.15 and maintained a Hold rating, reinforcing concerns about the company’s growth outlook and valuation. McDonald’s analyst estimate update
• Negative Sentiment: Krispy Kreme’s turnaround coverage notes that its nationwide McDonald’s partnership has ended, removing a distribution relationship that had offered McDonald’s an additional dessert and snack channel. Krispy Kreme’s turnaround sees many wins

McDonald’s Stock Up 0.0%

MCD stock opened at $273.83 on Wednesday. The business has a 50 day moving average of $273.92 and a 200 day moving average of $295.91. The firm has a market cap of $193.77 billion, a PE ratio of 22.24, a price-to-earnings-growth ratio of 3.06 and a beta of 0.41. McDonald’s Corporation has a twelve month low of $260.96 and a twelve month high of $341.75.

McDonald’s (NYSE:MCD) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald’s had a negative return on equity of 512.80% and a net margin of 31.72%.The business had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same period in the previous year, the company posted $3.19 earnings per share. The company’s revenue for the quarter was up 3.7% compared to the same quarter last year. On average, research analysts expect that McDonald’s Corporation will post 12.88 earnings per share for the current fiscal year.

McDonald’s Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald’s’s payout ratio is presently 60.44%.

McDonald’s Company 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.