Brown Shipley& Co Ltd Grows Stake in McDonald’s Corporation $MCD

Brown Shipley& Co Ltd lifted its holdings in McDonald’s Corporation (NYSE:MCD) by 2,963.8% during the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 6,863 shares of the fast-food giant’s stock after buying an additional 6,639 shares during the quarter. McDonald’s makes up about 0.8% of Brown Shipley& Co Ltd’s portfolio, making the stock its 25th biggest position. Brown Shipley& Co Ltd’s holdings in McDonald’s were worth $1,585,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of MCD. Abound Financial LLC bought a new stake in McDonald’s during the 4th quarter valued at about $30,000. Purpose Unlimited Inc. purchased a new stake in shares of McDonald’s in the fourth quarter valued at approximately $31,000. GKV Capital Management Co. Inc. bought a new position in McDonald’s in the first quarter worth approximately $33,000. Merkkuri Wealth Advisors LLC bought a new position in McDonald’s in the first quarter worth approximately $43,000. Finally, Burkett Financial Services LLC increased its holdings in McDonald’s by 2,312.5% during the 3rd quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock worth $45,000 after purchasing an additional 185 shares during the period. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s raised its quarterly dividend earlier than expected and appointed a new president for its U.S. business. The moves signal continued confidence in shareholder returns while management addresses softer U.S. traffic and uneven international performance. What Is McDonald’s Signaling With Its Faster Dividend And New US Chief?
• Positive Sentiment: Some analysts and investment publications view McDonald’s valuation as attractive, citing its high-margin franchise model, strong cash generation and discounted share price. A Seeking Alpha contributor upgraded the stock, while BetterInvesting identified MCD as an “Undervalued Stock.” McDonald’s: Same-Store Sales Are An Overrated Metric
• Neutral Sentiment: The return of the Monopoly promotion, new restaurant experiences and efforts such as the Chicago Marathon pickle-juice giveaway could support brand engagement, although their effect on sales and earnings is uncertain. McDonald’s Monopoly Returns
• Negative Sentiment: McDonald’s faces a proposed federal class-action lawsuit alleging that its AI-assisted pricing tools coordinated menu prices among franchisees, potentially raising antitrust, regulatory and reputational risks. The company denies the allegations, saying the complaint contains inaccuracies and that AI does not set menu prices. McDonald’s Sued Over Alleged AI-Powered Menu Price-Fixing
• Negative Sentiment: U.S. franchisees are reportedly resisting the approximately $8.5 billion “Next” remodeling program, with upgrades potentially costing at least $800,000 per location. The pushback raises execution, franchise-economics and capital-allocation concerns. McDonald’s Franchise Modernization Plan
• Negative Sentiment: Reports that value promotions, including $5 meals and $6 combos, have not restored customer visits suggest persistent affordability and traffic problems. Bernstein cut its price target from $295 to $250 and assigned a “market perform” rating, reinforcing the cautious outlook. McDonald’s Deals Are Not Winning Customers Back

Analyst Upgrades and Downgrades

MCD has been the subject of several research reports. UBS Group set a $260.00 target price on McDonald’s in a report on Thursday, September 24th. KeyCorp reduced their price target on McDonald’s from $305.00 to $280.00 and set an “overweight” rating on the stock in a research report on Tuesday. Mizuho cut their price target on shares of McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a research note on Friday, July 31st. Piper Sandler set a $286.00 target price on McDonald’s in a research report on Tuesday, August 4th. Finally, Guggenheim reduced their price target on McDonald’s from $290.00 to $250.00 and set a “neutral” rating for the company in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $295.94.

McDonald’s Stock Performance

MCD stock traded down $0.56 during mid-day trading on Friday, reaching $236.34. The company had a trading volume of 2,731,225 shares, compared to its average volume of 4,215,959. The company has a market capitalization of $167.25 billion, a price-to-earnings ratio of 19.20, a price-to-earnings-growth ratio of 2.58 and a beta of 0.44. The firm has a fifty day simple moving average of $256.02 and a 200 day simple moving average of $274.80. McDonald’s Corporation has a fifty-two week low of $229.20 and a fifty-two week high of $341.75.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) 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 analyst estimates of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The business’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter last year, the company posted $3.19 earnings per share. As a group, analysts predict that McDonald’s Corporation will post 12.85 earnings per share for the current year.

McDonald’s Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be given a dividend of $1.93 per share. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $7.72 annualized dividend and a yield of 3.3%. McDonald’s’s dividend payout ratio is presently 62.71%.

About McDonald’s

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.