Focused Investors LLC Decreases Holdings in McDonald’s Corporation $MCD

Focused Investors LLC trimmed its position in McDonald’s Corporation (NYSE:MCD) by 2.4% in the 1st quarter, Holdings Channel.com reports. The fund owned 407,300 shares of the fast-food giant’s stock after selling 10,000 shares during the quarter. McDonald’s makes up approximately 4.1% of Focused Investors LLC’s portfolio, making the stock its 13th biggest position. Focused Investors LLC’s holdings in McDonald’s were worth $126,585,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in the business. Forbes J M & Co. LLP boosted its stake in McDonald’s by 2.7% in the 1st quarter. Forbes J M & Co. LLP now owns 7,513 shares of the fast-food giant’s stock worth $2,335,000 after purchasing an additional 200 shares in the last quarter. Montecito Bank & Trust increased its stake in McDonald’s by 1.3% during the 1st quarter. Montecito Bank & Trust now owns 5,658 shares of the fast-food giant’s stock valued at $1,758,000 after purchasing an additional 75 shares in the last quarter. IVC Wealth Advisors LLC increased its stake in McDonald’s by 1.0% during the 1st quarter. IVC Wealth Advisors LLC now owns 4,560 shares of the fast-food giant’s stock valued at $1,417,000 after purchasing an additional 45 shares in the last quarter. Triad Wealth Partners LLC increased its stake in McDonald’s by 2.4% during the 1st quarter. Triad Wealth Partners LLC now owns 3,567 shares of the fast-food giant’s stock valued at $1,109,000 after purchasing an additional 84 shares in the last quarter. Finally, Quotient Wealth Partners LLC raised its holdings in shares of McDonald’s by 7.4% in the first quarter. Quotient Wealth Partners LLC now owns 3,141 shares of the fast-food giant’s stock worth $976,000 after buying an additional 217 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

Insider Buying and Selling

In other news, insider Joseph M. Erlinger sold 5,252 shares of the firm’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 sale, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 11,307 shares of company stock valued at $3,262,622 over the last three months. 0.26% of the stock is currently owned by corporate insiders.

McDonald’s Stock Performance

NYSE MCD opened at $279.00 on Monday. The stock has a 50-day simple moving average of $286.98 and a two-hundred day simple moving average of $305.82. The firm has a market capitalization of $198.23 billion, a P/E ratio of 23.00, a PEG ratio of 2.78 and a beta of 0.41. McDonald’s Corporation has a fifty-two week low of $271.85 and a fifty-two week high of $341.75.

McDonald’s (NYSE:MCD) last issued its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same quarter in the prior year, the business earned $2.67 earnings per share. The company’s revenue was up 9.4% compared to the same quarter last year. As a group, analysts forecast that McDonald’s Corporation will post 12.93 earnings per share for the current year.

McDonald’s Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were issued a $1.86 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald’s’s payout ratio is presently 61.34%.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s is reviving its original Fried Apple Pie for the first time since 1992, a nostalgia-driven menu move that could boost customer traffic, social buzz, and limited-time sales. McDonald’s (MCD) Brings Back Fried Apple Pie After More Than 30 Years
• Positive Sentiment: Recent analyst coverage highlighted McDonald’s value meals, menu innovation, and brand activations as helping lift same-store sales, with Australia cited as a key area of momentum. McDonald’s Blends Value With Brand Activations: Is It Paying Off?
• Positive Sentiment: Seeking Alpha published a rating upgrade arguing McDonald’s “McValue” strategy has finally reached buy territory, reinforcing the case that the company’s value offerings are supporting demand. McDonald’s (Mc)Value Finally Reaches Buy Territory (Rating Upgrade)
• Neutral Sentiment: Coverage around McDonald’s AI drive-thru plans suggests the company is still experimenting with automation to improve service and efficiency, but the near-term stock impact is unclear. McDonald’s AI drive-thru may take your next order
• Neutral Sentiment: Several articles about historic landmarks, Happy Meal toys, and food trivia are mostly brand-related publicity and are less likely to materially move the stock on their own.
• Negative Sentiment: Some recent commentary remains cautious, with one article arguing McDonald’s is still delivering but not enough to justify a buy, which may temper enthusiasm for the shares. McDonald’s: Still Delivering, But Not Enough For A Buy

Analysts Set New Price Targets

Several equities research analysts have recently commented on MCD shares. Erste Group Bank downgraded shares of McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Tigress Financial upped their target price on McDonald’s from $360.00 to $385.00 and gave the company a “buy” rating in a research report on Friday, March 6th. Royal Bank Of Canada reduced their target price on McDonald’s from $330.00 to $305.00 and set a “sector perform” rating for the company in a research note on Friday, May 8th. Weiss Ratings cut McDonald’s from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, May 29th. Finally, Morgan Stanley set a $331.00 price target on McDonald’s in a research report on Friday, May 8th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target 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.