Joseph Erlinger Sells 5,252 Shares of McDonald’s (NYSE:MCD) Stock

McDonald’s Corporation (NYSE:MCD) insider Joseph Erlinger sold 5,252 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The shares were 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. The trade was a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website.

McDonald’s Trading Up 0.9%

NYSE MCD opened at $285.02 on Friday. The firm’s 50 day simple moving average is $289.83 and its 200 day simple moving average is $306.90. The firm has a market capitalization of $202.51 billion, a price-to-earnings ratio of 23.50, a P/E/G ratio of 2.81 and a beta of 0.41. McDonald’s Corporation has a 1 year low of $271.85 and a 1 year high of $341.75.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating the consensus estimate of $2.74 by $0.09. The business had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The company’s revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the business earned $2.67 earnings per share. On average, equities research analysts forecast that McDonald’s Corporation will post 12.93 earnings per share for the current year.

McDonald’s Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Tuesday, June 2nd. McDonald’s’s dividend payout ratio is currently 61.34%.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s new FIFA World Cup meal promotions, collectible cups, and Squishmallows tie-ins could lift traffic and drive incremental sales through limited-time demand. McDonald’s FIFA World Cup meals with Squishmallows and 9 collectible cups are here
• Positive Sentiment: McDonald’s is testing AI-powered drive-thru systems, which could improve service speed, reduce labor pressure, and support margins if the rollout works well. McDonald’s testing AI drive-thru system at select US locations
• Positive Sentiment: Analyst sentiment remains constructive, with coverage pointing to a “Moderate Buy” consensus on MCD. McDonald’s Corporation (NYSE:MCD) Given Consensus Rating of “Moderate Buy” by Analysts
• Neutral Sentiment: McDonald’s is receiving additional attention from commentary framing it as a long-term buy-on-weakness name, but this is more sentiment than a fresh fundamental catalyst. Jim Cramer Discusses a Strategic Buying Plan to Build a Great Cost Basis in McDonald’s
• Negative Sentiment: An insider sale by executive Joseph M. Erlinger may weigh on sentiment, even though insider sales do not always indicate a weaker outlook. Joseph M. Erlinger insider sale
• Negative Sentiment: Recent analysis highlighted that MCD shares have fallen over the past few months amid cost pressures, weaker low-income demand, and slower sales growth, which remains a key overhang for the stock. McDonald’s Stock Slides 13% in 3 Months: Buy the Dip or Stay Away?
• Negative Sentiment: There is also some concern around customer frustration with drive-thru changes and workplace safety scrutiny, which could hurt brand perception if the issues persist. McDonald’s quietly makes a major change to its drive thru and customers are furious

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in MCD. Vanguard Group Inc. grew its holdings in McDonald’s by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock worth $22,112,675,000 after acquiring an additional 703,458 shares during the last quarter. State Street Corp raised its stake in shares of McDonald’s by 2.7% during 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 during the last quarter. Geode Capital Management LLC raised its stake in shares of McDonald’s by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock valued at $5,195,965,000 after acquiring an additional 76,090 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of McDonald’s by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant’s stock worth $2,895,768,000 after purchasing an additional 277,617 shares during the period. Finally, Norges Bank acquired a new position in shares of McDonald’s during the fourth quarter worth $2,890,438,000. Institutional investors and hedge funds own 70.29% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have commented on MCD shares. KeyCorp lowered their target price on McDonald’s from $345.00 to $330.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. TD Cowen reduced their price target on shares of McDonald’s from $330.00 to $300.00 and set a “hold” rating on the stock in a research note on Thursday, May 7th. Weiss Ratings lowered shares of McDonald’s from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, May 29th. Evercore set a $350.00 price objective on shares of McDonald’s in a research note on Friday, May 8th. Finally, Argus upgraded shares of McDonald’s from a “hold” rating to a “buy” rating and set a $380.00 target price on the stock in a research report on Friday, February 13th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $336.26.

About McDonald’s

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.