MGO One Seven LLC boosted its stake in McDonald’s Corporation (NYSE:MCD – Free Report) by 15.7% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 21,950 shares of the fast-food giant’s stock after buying an additional 2,978 shares during the period. MGO One Seven LLC’s holdings in McDonald’s were worth $5,933,000 at the end of the most recent quarter.
A number of other large investors also recently bought and sold shares of the stock. Your Advocates Ltd. LLP purchased a new stake in shares of McDonald’s in the 4th quarter valued at approximately $27,000. IFC & Insurance Marketing Inc. purchased a new position in shares of McDonald’s during the 4th quarter worth approximately $29,000. Abound Financial LLC purchased a new position in shares of McDonald’s during the 4th quarter worth approximately $30,000. Purpose Unlimited Inc. acquired a new stake in McDonald’s in the 4th quarter valued at approximately $31,000. Finally, DecisionPoint Financial LLC increased its holdings in McDonald’s by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock valued at $31,000 after purchasing an additional 97 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.
Insider Buying and Selling
In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’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 sale, the executive vice president owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald’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 transaction of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This represents a 40.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,348 shares of company stock worth $2,355,634 over the last 90 days. Insiders own 0.26% of the company’s stock.
McDonald’s Trading Up 0.6%
McDonald’s (NYSE:MCD – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.McDonald’s’s revenue was up 3.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.19 EPS. Equities analysts forecast that McDonald’s Corporation will post 12.88 EPS for the current year.
McDonald’s Announces Dividend
The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio is presently 60.44%.
Wall Street Analyst Weigh In
A number of research firms have commented on MCD. KeyCorp decreased their price target on McDonald’s from $315.00 to $305.00 and set an “overweight” rating on the stock in a research note on Wednesday, August 5th. Rothschild & Co Redburn upgraded McDonald’s from a “sell” rating to a “neutral” rating and boosted their price objective for the company from $260.00 to $306.00 in a report on Thursday, April 23rd. Evercore set a $320.00 target price on McDonald’s in a research note on Thursday, July 23rd. Citigroup raised their target price on McDonald’s from $335.00 to $345.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Finally, Cfra raised McDonald’s to a “buy” rating in a research report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, McDonald’s currently has an average rating of “Moderate Buy” and an average target price of $325.44.
Get Our Latest Research Report on McDonald’s
Key Stories Impacting McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s valuation has become more attractive after its decline, with one bullish estimate implying substantial upside toward the Wall Street consensus target. However, analysts say investors may need to wait for clearer evidence of improved execution. Is McDonald’s a Buy Today as Lower Valuation Meets Execution Risk?
- Positive Sentiment: A workforce scheduling and transportation app reportedly helped one McDonald’s franchise avoid missed shifts and save about $35,000 per month. Wider adoption could improve staffing reliability and restaurant-level margins. Missed shifts were costly to this McDonald’s. An app has fixed the problem
- Positive Sentiment: Limited-time promotions, including Hello Kitty–Godzilla Happy Meals, new fall beverages and an afternoon-focused menu strategy aimed at Starbucks could support traffic and increase customer occasions. McDonald’s Takes Direct Aim at Starbucks
- Neutral Sentiment: McDonald’s latest quarterly earnings beat expectations on EPS, helped by franchised operations, but revenue slightly missed estimates. Investors remain focused on whether cost controls and franchise strength can offset softer U.S. demand. McDonald’s Q2 Earnings Beat Puts U.S. Traffic and Margins in Focus
- Negative Sentiment: Numerator data showed sales among low-income customers fell 2.4% in the latest quarter, indicating that prior price increases may be pushing budget-conscious diners toward alternatives. McDonald’s is losing ground to rivals like Burger King with a key customer group
- Negative Sentiment: Weak U.S. traffic, value-offer execution problems, rising beef and operating costs, and competition from Burger King are creating pressure on sales and margins. The broader economic concern flagged by restaurant and consumer-goods executives adds to the risk. Burger King is taking a bite out of McDonald’s lunch
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.
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