Waterloo Capital L.P. Decreases Holdings in McDonald’s Corporation $MCD

Waterloo Capital L.P. reduced its stake in McDonald’s Corporation (NYSE:MCD) by 79.1% during the second quarter, Holdings Channel.com reports. The firm owned 1,743 shares of the fast-food giant’s stock after selling 6,613 shares during the quarter. Waterloo Capital L.P.’s holdings in McDonald’s were worth $471,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently bought and sold shares of MCD. Hamilton Point Investment Advisors LLC boosted its stake in shares of McDonald’s by 1.8% in the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant’s stock worth $535,000 after acquiring an additional 31 shares during the period. Encompass More Asset Management raised its stake in McDonald’s by 1.5% during the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock valued at $648,000 after purchasing an additional 32 shares during the period. Richmond Investment Services LLC raised its stake in McDonald’s by 1.4% during the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock valued at $696,000 after purchasing an additional 32 shares during the period. Papamarkou Wellner Asset Management inc. lifted its holdings in McDonald’s by 0.4% in the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant’s stock worth $2,692,000 after purchasing an additional 32 shares in the last quarter. Finally, Physician Wealth Advisors Inc. lifted its holdings in McDonald’s by 1.6% in the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant’s stock worth $642,000 after purchasing an additional 33 shares in the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers
• Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers
• Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys
• Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call
• Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground
• Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered
• Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on MCD shares. BTIG Research reissued a “buy” rating and set a $350.00 target price on shares of McDonald’s in a research report on Wednesday, August 5th. Weiss Ratings lowered shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. Citigroup upped their price target on shares of McDonald’s from $335.00 to $345.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Royal Bank Of Canada decreased their price objective on shares of McDonald’s from $305.00 to $295.00 and set a “sector perform” rating for the company in a research note on Wednesday, August 5th. Finally, Cfra upgraded McDonald’s to a “buy” rating in a report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, McDonald’s currently has an average rating of “Moderate Buy” and an average target price of $325.44.

McDonald’s Stock Performance

McDonald’s stock opened at $272.61 on Monday. McDonald’s Corporation has a 1 year low of $260.96 and a 1 year high of $341.75. The stock has a market capitalization of $192.91 billion, a P/E ratio of 22.15, a P/E/G ratio of 3.05 and a beta of 0.41. The company’s fifty day moving average price is $273.81 and its 200 day moving average price is $295.15.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. During the same period last year, the company earned $3.19 EPS. The company’s quarterly revenue was up 3.7% on a year-over-year basis. Sell-side analysts predict that McDonald’s Corporation will post 12.88 EPS for the current year.

McDonald’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be given a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. McDonald’s’s dividend payout ratio is currently 60.44%.

Insiders Place Their Bets

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred 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 transaction, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction dated 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 $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 8,348 shares of company stock valued at $2,355,634. 0.26% of the stock is currently owned by company insiders.

McDonald’s 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.