Chiron Capital Management LLC acquired a new position in shares of McDonald’s Corporation (NYSE:MCD – Free Report) in the 3rd quarter, Holdings Channel.com reports. The firm acquired 2,603 shares of the fast-food giant’s stock, valued at approximately $601,000.
A number of other institutional investors also recently made changes to their positions in MCD. State Street Corp boosted its stake in McDonald’s by 1.8% in the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant’s stock valued at $9,752,921,000 after purchasing an additional 646,675 shares during the period. Bank of New York Mellon Corp acquired a new position in McDonald’s in the 2nd quarter valued at $1,359,276,000. Arrowstreet Capital Limited Partnership grew its holdings in 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 valued at $1,130,587,000 after buying an additional 533,448 shares in the last quarter. Diamant Asset Management Inc. increased its position in McDonald’s by 30,979.0% during 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 buying an additional 2,587,986 shares during the period. Finally, 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 worth $776,608,000 after buying an additional 2,515,515 shares during the period. Institutional investors own 70.29% of the company’s stock.
Wall Street Analysts Forecast Growth
A number of equities research analysts have recently weighed in on MCD shares. Citigroup dropped their target price on McDonald’s from $310.00 to $305.00 and set a “buy” rating for the company in a report on Thursday, September 24th. Sanford C. Bernstein decreased their price target on shares of McDonald’s from $295.00 to $250.00 and set a “market perform” rating on the stock in a research note on Thursday, October 8th. Loop Capital decreased their price target on shares of McDonald’s from $301.00 to $273.00 and set a “hold” rating on the stock in a research note on Wednesday, August 5th. Argus lowered their price target on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating on the stock in a research report on Wednesday, August 26th. Finally, Bank of America lifted their price objective on shares of McDonald’s from $339.00 to $343.00 in a research note on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $295.94.
Key Headlines Impacting McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s shares advanced even as the broader market weakened, indicating some relative strength and investor interest at depressed valuation levels. McDonald’s Increases Despite Market Slip
- Positive Sentiment: The company’s roughly $8.5 billion franchisee-support and modernization plan, along with personalized digital offers, value meals and streamlined marketing, could improve traffic and sales if execution improves. The planned “Archy” drive-through AI system may also support efficiency, although its benefits remain unproven. McDonald’s $8.5B Fix
- Positive Sentiment: Renewed promotions, including the Monopoly Go collaboration and potential Disney-villain Boo Buckets, could provide short-term customer engagement and seasonal sales support, though these campaigns are unlikely to change the long-term outlook by themselves. Monopoly Go Returns to McDonald’s
- Neutral Sentiment: At about 18 times earnings, MCD’s valuation may already reflect some of the turnaround risk, but investors still need evidence that the spending plan can restore sustainable growth. McDonald’s Trades at 18 Times Earnings
- Negative Sentiment: Shares remain down sharply over six months as weak U.S. sales, ineffective value-menu execution and reduced earnings estimates weigh on investor confidence. Analysts are questioning whether promotions and operational fixes can reverse the slowdown. McDonald’s Stock Down 23 Percent in Six Months
- Negative Sentiment: A proposed class-action lawsuit alleging problematic AI-driven menu pricing creates legal, reputational and regulatory risk, while reports of a poorly reviewed U.S. location highlight potential service and franchise-operator issues. McDonald’s AI Menu Pricing Lawsuit
McDonald’s Price Performance
NYSE:MCD traded up $4.41 during trading hours on Thursday, reaching $242.72. 3,722,480 shares of the company were exchanged, compared to its average volume of 4,236,576. The company has a market capitalization of $171.76 billion, a P/E ratio of 19.76, a P/E/G ratio of 2.64 and a beta of 0.44. McDonald’s Corporation has a 1-year low of $229.20 and a 1-year high of $341.75. The business has a 50 day moving average of $253.35 and a 200 day moving average of $272.74.
McDonald’s (NYSE:MCD – Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. The firm 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 company’s revenue was up 3.7% on a year-over-year basis. During the same quarter last year, the company earned $3.19 EPS. As a group, equities research analysts anticipate that McDonald’s Corporation will post 12.84 earnings per share for the current fiscal year.
McDonald’s Increases Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a dividend of $1.93 per share. This is an increase 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 dividend yield of 3.2%. McDonald’s’s payout ratio is currently 62.71%.
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.
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