Saudi Central Bank Buys 23,442 Shares of McDonald’s Corporation $MCD

Saudi Central Bank raised its stake in McDonald’s Corporation (NYSE:MCD) by 19.3% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 144,728 shares of the fast-food giant’s stock after buying an additional 23,442 shares during the period. Saudi Central Bank’s holdings in McDonald’s were worth $38,874,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also added to or reduced their stakes in the company. IFC & Insurance Marketing Inc. bought a new stake in shares of McDonald’s during the fourth quarter valued at approximately $29,000. Abound Financial LLC bought a new position in McDonald’s in the fourth quarter worth approximately $30,000. Entrust Financial LLC purchased a new position in McDonald’s during the 4th quarter worth $31,000. Purpose Unlimited Inc. purchased a new position in McDonald’s during the 4th quarter worth $31,000. Finally, GKV Capital Management Co. Inc. bought a new stake in McDonald’s during the 1st quarter valued at $33,000. 70.29% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several brokerages have weighed in on MCD. Weiss Ratings cut McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. KeyCorp cut 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. Royal Bank Of Canada decreased their price objective on McDonald’s from $305.00 to $295.00 and set a “sector perform” rating for the company in a report on Wednesday, August 5th. UBS Group set a $305.00 price objective on shares of McDonald’s in a research note on Wednesday, August 5th. Finally, Deutsche Bank Aktiengesellschaft increased their target price on shares of McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $321.35.

Insider Buying and Selling at McDonald’s

In other news, insider Joseph Erlinger sold 5,252 shares of the business’s stock in a transaction dated 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 sale, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.26% of the company’s stock.

McDonald’s Stock Down 1.5%

NYSE:MCD opened at $255.69 on Friday. The stock has a market capitalization of $180.94 billion, a price-to-earnings ratio of 20.77, a PEG ratio of 2.76 and a beta of 0.41. McDonald’s Corporation has a 52 week low of $255.49 and a 52 week high of $341.75. The firm has a 50 day moving average of $269.67 and a 200 day moving average of $289.39.

McDonald’s (NYSE:MCD) last released its quarterly earnings results 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. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same period in the previous year, the company earned $3.19 earnings per share. The business’s revenue for the quarter was up 3.7% on a year-over-year basis. As a group, analysts expect that McDonald’s Corporation will post 12.87 EPS for the current year.

McDonald’s Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be issued a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s dividend payout ratio (DPR) is currently 60.44%.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: Valuation may attract contrarian buyers: McDonald’s is trading at roughly 19.15 times earnings, below the restaurant industry’s average multiple. Analysts point to global expansion, digital initiatives and new product efforts as possible catalysts for a recovery. McDonald’s Trades at 19.15X P/E: Is This a Discounted Opportunity?
• Positive Sentiment: Promotional activity could support traffic: McDonald’s is bringing back popular menu items, launching a Texas-themed meal with collectible cups and promoting limited-time products. These campaigns may encourage visits and improve near-term sales, though their financial impact is unproven. McDonald’s launches exclusive state-themed meal
• Neutral Sentiment: Brand visibility remains high: Coverage of McDonald’s breakfast offerings, Grimace appearances, collectible merchandise and Warren Buffett’s long-standing affinity for the brand reinforces consumer awareness but is unlikely to materially change earnings expectations. The best McDonald’s breakfast sandwich isn’t on the menu
• Negative Sentiment: U.S. consumer weakness is the main concern: Reports describe consumer-focused stocks, including McDonald’s, as signaling softer spending in middle America. Articles also highlight customers shifting to competing fast-food chains, increasing pressure on traffic and comparable sales. Wall Street worried about consumer stocks
• Negative Sentiment: Value positioning remains problematic: Coverage says McDonald’s $3 value offering has not fully delivered for customers or the company, raising concerns about affordability, franchisee economics and the effectiveness of discounting. Why you can’t find McDonald’s $3 value menu

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.