18,224 Shares in McDonald’s Corporation $MCD Bought by Adams Asset Advisors LLC

Adams Asset Advisors LLC bought a new stake in shares of McDonald’s Corporation (NYSE:MCD) during the 3rd quarter, Holdings Channel reports. The fund bought 18,224 shares of the fast-food giant’s stock, valued at approximately $4,209,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. State Street Corp boosted its holdings in McDonald’s by 2.7% in the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after acquiring an additional 959,140 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in McDonald’s by 7.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant’s stock worth $1,699,314,000 after purchasing an additional 384,762 shares in the last quarter. Bank of New York Mellon Corp bought a new position in McDonald’s in the 2nd quarter worth $1,359,276,000. Arrowstreet Capital Limited Partnership lifted its position in shares of McDonald’s by 17.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant’s stock worth $1,130,587,000 after purchasing an additional 533,448 shares during the period. Finally, Diamant Asset Management Inc. lifted its position 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 worth $806,917,000 after purchasing an additional 2,587,986 shares during the period. Institutional investors own 70.29% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on MCD. HC Wainwright set a $250.00 price target on shares of McDonald’s in a research report on Friday, September 25th. HSBC decreased their target price on McDonald’s from $357.00 to $356.00 and set a “buy” rating for the company in a research report on Wednesday, August 5th. Argus lowered their target price on McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a research note on Wednesday, August 26th. Royal Bank Of Canada dropped their price target on McDonald’s from $290.00 to $285.00 and set a “sector perform” rating on the stock in a research report on Thursday, September 24th. Finally, Evercore reduced their price target on McDonald’s from $320.00 to $300.00 and set an “outperform” rating on the stock in a research note on Thursday, September 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $295.94.

McDonald’s News Summary

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

• Positive Sentiment: Promotional activity could support traffic. McDonald’s brought back its Monopoly promotion with a $1 million grand prize, potentially boosting customer engagement and near-term visits. Infamous McDonald’s Monopoly game returns with $1M grand prize
• Positive Sentiment: Income-oriented investors have a reason to remain interested. McDonald’s recently increased its quarterly dividend and accelerated the timing of its dividend decision, while a new U.S. president is tasked with addressing softer domestic traffic. The company’s highly franchised model, strong margins and cash generation also remain central to the bullish case. What Is McDonald’s Signaling With Its Faster Dividend And New US Chief?
• Positive Sentiment: Some analysts see valuation support. BetterInvesting Magazine selected MCD as an “Undervalued Stock,” and another analysis argued that investors may be overlooking the economics of McDonald’s high-margin franchise structure. BetterInvesting Magazine Update on Descartes Systems Group and McDonald’s Corp.
• Neutral Sentiment: The company is investing heavily in restaurant modernization. McDonald’s plans to spend approximately $8.5 billion on its “Next” remodeling program, including efforts to improve the customer experience and potentially revive the PlayPlace concept. The long-term payoff is uncertain, and franchisees are concerned about upgrade costs of at least $800,000 per location. McDonald’s Wants Its Franchisees to Modernize
• Negative Sentiment: Antitrust litigation is the most significant overhang. A proposed class action alleges that McDonald’s AI-assisted pricing tool shares nonpublic sales and pricing data among competing franchisees, facilitating price coordination. McDonald’s denies the allegations and says the lawsuit contains inaccuracies, emphasizing that AI does not directly set menu prices. McDonald’s sued over AI tool that recommends prices to US franchisees
• Negative Sentiment: Analyst caution and weak consumer sentiment remain. Sanford C. Bernstein lowered its price target to $250 and maintained a “market perform” rating. Reports also indicate that discount campaigns have not fully restored customer visits, while complaints about higher prices and smaller perceived portions could pressure sales and brand perception.

McDonald’s Stock Up 2.5%

Shares of NYSE:MCD traded up $5.76 on Thursday, hitting $236.64. 11,354,972 shares of the company traded hands, compared to its average volume of 4,224,013. McDonald’s Corporation has a 52 week low of $229.20 and a 52 week high of $341.75. The stock has a 50 day simple moving average of $256.66 and a 200-day simple moving average of $275.31. The company has a market cap of $167.46 billion, a PE ratio of 19.22, a PEG ratio of 2.60 and a beta of 0.44.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion for the quarter, compared to analysts’ expectations of $7.13 billion. During the same quarter in the previous year, the business posted $3.19 EPS. McDonald’s’s revenue was up 3.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that McDonald’s Corporation will post 12.85 earnings per share for the current year.

McDonald’s Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be paid a $1.93 dividend. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Tuesday, December 1st. McDonald’s’s payout ratio is currently 60.44%.

McDonald’s Company Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.