Sterling Capital Management LLC Boosts Stake in McDonald’s Corporation $MCD

Sterling Capital Management LLC increased its holdings in shares of McDonald’s Corporation (NYSE:MCD) by 274.6% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 13,661 shares of the fast-food giant’s stock after acquiring an additional 10,014 shares during the period. Sterling Capital Management LLC’s holdings in McDonald’s were worth $4,246,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of MCD. Cambient Family Office LLC lifted its position in shares of McDonald’s by 2.8% during the 1st quarter. Cambient Family Office LLC now owns 19,009 shares of the fast-food giant’s stock valued at $5,908,000 after acquiring an additional 522 shares during the period. River Street Advisors LLC increased its stake in McDonald’s by 30.1% in the 1st quarter. River Street Advisors LLC now owns 5,983 shares of the fast-food giant’s stock valued at $1,859,000 after purchasing an additional 1,384 shares in the last quarter. Merkkuri Wealth Advisors LLC purchased a new position in McDonald’s in the 1st quarter valued at approximately $43,000. Econ Financial Services Corp raised its holdings in McDonald’s by 4.8% during the first quarter. Econ Financial Services Corp now owns 13,906 shares of the fast-food giant’s stock worth $4,322,000 after purchasing an additional 636 shares during the last quarter. Finally, Granite Islands Private Wealth LLC raised its holdings in McDonald’s by 7.7% during the first quarter. Granite Islands Private Wealth LLC now owns 3,864 shares of the fast-food giant’s stock worth $1,192,000 after purchasing an additional 275 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Analysts Set New Price Targets

MCD has been the topic of several research reports. Wells Fargo & Company lowered their target price on McDonald’s from $355.00 to $320.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Cfra raised McDonald’s to a “buy” rating in a research note on Friday, May 8th. Rothschild & Co Redburn upgraded shares of McDonald’s from a “sell” rating to a “neutral” rating and boosted their price objective for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. JPMorgan Chase & Co. lowered their price objective on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research note on Monday, May 11th. Finally, Evercore set a $350.00 target price on shares of McDonald’s in a report on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, McDonald’s currently has an average rating of “Moderate Buy” and a consensus target price of $336.26.

McDonald’s Stock Performance

Shares of NYSE:MCD opened at $270.21 on Friday. The business’s fifty day moving average price is $283.43 and its two-hundred day moving average price is $304.54. The stock has a market cap of $191.98 billion, a PE ratio of 22.28, a price-to-earnings-growth ratio of 2.69 and a beta of 0.41. McDonald’s Corporation has a one year low of $264.53 and a one year high of $341.75.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share 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 company had revenue of $6.52 billion during the quarter, compared to analysts’ expectations of $6.47 billion. During the same period in the previous year, the firm posted $2.67 earnings per share. The business’s revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities research analysts predict that McDonald’s Corporation will post 12.93 earnings per share for the current fiscal year.

McDonald’s Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were given a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald’s’s payout ratio is currently 61.34%.

Insider Buying and Selling

In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of McDonald’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 value of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 11,307 shares of company stock valued at $3,262,622. Company insiders own 0.26% 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 is drawing attention for menu-driven buzz, including the return of its fried apple pie and coverage around World Cup collectible cups, which can help traffic, social engagement, and near-term sales. We Tried It: A Visit to McDonald’s 35-Foot Fried Apple Pie Along Rte 66
• Positive Sentiment: The company is also expanding and modernizing, including a new Howard City location and a broader “McDonald’s NEXT” push focused on automation, digital ordering, better food quality, and improved franchise economics. McDonald’s opens first Howard City location
• Positive Sentiment: Some commentary says lower oil prices are helping restaurant stocks broadly, easing consumer wallet pressure and lifting quick-service dining names like McDonald’s. Jack in the Box and First Watch Stocks Trade Up, What You Need To Know
• Neutral Sentiment: Zacks noted that McDonald’s is relying on China expansion to support long-term growth, but macro pressure and regional volatility are still weighing on near-term trends. Can McDonald’s China Expansion Support IDL Growth Amid Macro Pressure?
• Neutral Sentiment: Several articles were mostly consumer-interest pieces about how to save money at McDonald’s or how its products taste, which add brand visibility but are unlikely to materially affect fundamentals. How To Find the Cheapest McDonald’s Wherever You Are
• Negative Sentiment: One recent article highlights that Burger King breakfast sandwiches may outperform McDonald’s on a key advantage, reinforcing competitive pressure in breakfast and value-focused traffic. Burger King breakfast sandwiches outshine McDonald’s every time with one big advantage
• Negative Sentiment: There is also scrutiny around McDonald’s new AI drive-thru testing after a prior system was removed in 2024 due to ordering errors, which could raise questions about execution risk if rollout issues persist. McDonald’s is testing a new AI drive-thru system after removing its previous one in 2024 over order errors

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.