Washington Trust Advisors Inc. decreased its holdings in McDonald’s Corporation (NYSE:MCD – Free Report) by 69.9% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,291 shares of the fast-food giant’s stock after selling 2,996 shares during the period. Washington Trust Advisors Inc.’s holdings in McDonald’s were worth $349,000 at the end of the most recent reporting period.
Several other institutional investors have also recently made changes to their positions in the business. State Street Corp grew its holdings in McDonald’s by 2.7% during the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after buying an additional 959,140 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of McDonald’s by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock worth $5,195,965,000 after buying an additional 76,090 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its position 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 acquiring an additional 277,617 shares during the last quarter. Norges Bank purchased a new position in McDonald’s during the fourth quarter valued at $2,890,438,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in McDonald’s by 7.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant’s stock valued at $1,699,314,000 after acquiring an additional 384,762 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.
Insider Buying and Selling
In related news, insider Joseph Erlinger sold 5,252 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The stock was 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 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 document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.26% of the stock is owned by corporate insiders.
McDonald’s News Roundup
- Positive Sentiment: A McDonald’s franchisee in Milwaukee reported double-digit sales growth across seven restaurants, crediting improved operations, local marketing and disciplined execution. The results suggest that franchisees with effective store-level strategies may still be able to outperform broader U.S. trends. McDonald’s sales growth has slowed. One franchisee says his stores are up double digits — and he credits these 3 things.
- Positive Sentiment: Analysts cited McDonald’s franchise economics, global diversification and recurring royalty revenue as reasons the company could recover. One market commentary sees substantial upside to the shares despite current U.S. execution issues. Why Franchise Models Are Winning the Restaurant Stock Divide
- Positive Sentiment: McDonald’s long record of annual dividend increases—dating back to 1976—continues to appeal to income-oriented investors. The recent share-price pullback is being presented as a potentially attractive entry point, with the dividend supported by the company’s asset-light franchise model. McDonald’s Has Raised Its Dividend Every Year Since 1976
- Neutral Sentiment: McDonald’s remained open on Labor Day, a routine operating update with limited direct implications for earnings or valuation. Fast Food Chains: Are Chick-fil-A, McDonald’s, Starbucks Open on Labor Day?
- Neutral Sentiment: New fall beverages and promotional menu changes could support traffic and seasonal sales, but the impact is unlikely to be material without evidence of stronger customer demand. McDonald’s drops a 13-year favorite as it unveils its new fall drinks
- Neutral Sentiment: Coverage of a customer “hack” for keeping cars cleaner while eating McDonald’s is lifestyle content and has no meaningful near-term investment impact. The McDonald’s Hack That Keeps Your Car A Little Cleaner When Eating Burgers On The Go
- Negative Sentiment: Recent commentary highlights slowing U.S. sales and execution missteps, contrasting McDonald’s with restaurant peers that reported stronger results from franchise economics and international diversification. This is the clearest near-term pressure on the stock. Why Franchise Models Are Winning the Restaurant Stock Divide
- Negative Sentiment: Reports that McDonald’s once sold its roughly 90% stake in Chipotle are reviving criticism that the company missed significant long-term value creation. The issue is historical rather than an immediate earnings catalyst, but it may weigh on sentiment about capital allocation. McDonald’s Exit From a 90% Restaurant Stake Still Haunts Investors
- Negative Sentiment: McDonald’s India’s social-media account reportedly posted memecoin-related content, creating reputational and governance concerns, although the incident appears unlikely to materially affect consolidated financial results. McDonald’s India Drama Erupts While Wall Street Targets 24% Stock Rally
Analyst Ratings Changes
A number of analysts have issued reports on MCD shares. Sanford C. Bernstein reiterated a “market perform” rating and issued a $295.00 price target on shares of McDonald’s in a report on Wednesday, August 5th. JPMorgan Chase & Co. cut their price objective on McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a research report on Monday, May 11th. UBS Group set a $305.00 target price on McDonald’s in a report on Wednesday, August 5th. BTIG Research reiterated a “buy” rating and issued a $350.00 target price on shares of McDonald’s in a research report on Wednesday, August 5th. Finally, Argus cut their price target on McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a report on Wednesday, August 26th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, McDonald’s currently has a consensus rating of “Moderate Buy” and a consensus price target of $321.35.
Check Out Our Latest Report on MCD
McDonald’s Price Performance
Shares of NYSE:MCD opened at $255.69 on Tuesday. The firm has a fifty day simple moving average of $269.43 and a two-hundred day simple moving average of $288.61. McDonald’s Corporation has a 52 week low of $255.49 and a 52 week high of $341.75. The stock has a market capitalization of $180.94 billion, a P/E ratio of 20.77, a PEG ratio of 2.76 and a beta of 0.41.
McDonald’s (NYSE:MCD – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.McDonald’s’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.19 EPS. On average, analysts expect that McDonald’s Corporation will post 12.87 earnings per share for the current year.
McDonald’s Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be given 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 payout ratio is 60.44%.
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.
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