Dynamic Advisor Solutions LLC Cuts Stock Position in McDonald’s Corporation $MCD

Dynamic Advisor Solutions LLC cut its holdings in shares of McDonald’s Corporation (NYSE:MCD) by 12.3% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 13,672 shares of the fast-food giant’s stock after selling 1,917 shares during the quarter. Dynamic Advisor Solutions LLC’s holdings in McDonald’s were worth $3,696,000 as of its most recent SEC filing.

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

Insider Activity at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’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 transaction, the executive vice president owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction 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 of the company’s stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 8,348 shares of company stock worth $2,355,634. Corporate insiders own 0.26% of the company’s stock.

McDonald’s Trading Up 0.7%

Shares of NYSE:MCD opened at $276.05 on Friday. The company has a market cap of $196.13 billion, a price-to-earnings ratio of 22.42, a PEG ratio of 2.94 and a beta of 0.41. McDonald’s Corporation has a 12 month low of $260.96 and a 12 month high of $341.75. The company has a 50-day moving average price of $274.14 and a 200 day moving average price of $296.58.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald’s had a negative return on equity of 512.80% and a net margin of 31.72%.The company had revenue of $7.10 billion for the quarter, compared to analysts’ expectations of $7.13 billion. During the same period in the previous year, the firm posted $3.19 earnings per share. The firm’s revenue for the quarter was up 3.7% on a year-over-year basis. As a group, equities analysts forecast that McDonald’s Corporation will post 12.86 EPS for the current year.

McDonald’s Dividend Announcement

The business also recently announced 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 annualized dividend and a dividend yield of 2.7%. McDonald’s’s payout ratio is currently 60.44%.

More McDonald’s News

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

• Positive Sentiment: Quarterly profit exceeded expectations. McDonald’s reported adjusted earnings of $3.38 per share, above the $3.32 consensus estimate, while revenue rose 3.7% year over year to $7.10 billion. The earnings beat and 31.7% net margin provide support for the stock. McDonald’s posts strong second quarter profit, names new leader for US market
• Positive Sentiment: Analyst support and income appeal remain intact. BTIG reaffirmed its Buy rating with a $350 price target, while the stock’s dividend and consensus Moderate Buy view may attract investors after the recent weakness. BTIG rating reaffirmed
• Positive Sentiment: Management is taking corrective action. McDonald’s appointed a new U.S. leader and is reviewing value offers, digital promotions, restaurant workloads and marketing execution. Stronger international performance could help offset domestic softness. MCD Q2 Earnings Call Flags U.S. Execution Gaps
• Neutral Sentiment: Price targets were reduced but remain above the current level. Morgan Stanley, RBC and Baird lowered their targets to $319, $295 and $285, respectively, citing a more cautious near-term outlook. Their ratings range from Equal Weight to Neutral. Analyst price-target changes
• Negative Sentiment: U.S. growth remains the central concern. Domestic comparable sales rose only 0.8% in the second quarter, and management acknowledged that the current value menu is too complicated and that reduced digital discounts have hurt traffic. Lower-income customers are also spending less at McDonald’s. McDonald’s Looks to Fix a Value Misfire
• Negative Sentiment: Competitive pressure is increasing. Burger King is gaining U.S. sales momentum after revamping its Whopper, while McDonald’s expansion toward 50,000 restaurants is taking longer than planned because of economic conditions. Burger King’s US sales surge while McDonald’s growth flails

Wall Street Analyst Weigh In

MCD has been the subject of several research analyst reports. Robert W. Baird cut their target price on shares of McDonald’s from $305.00 to $285.00 and set a “neutral” rating for the company in a research note on Wednesday. Royal Bank Of Canada decreased their price target on shares of McDonald’s from $305.00 to $295.00 and set a “sector perform” rating on the stock in a research note on Wednesday. Barclays dropped their price objective on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a report on Friday, May 8th. KeyCorp cut their price target on McDonald’s from $315.00 to $305.00 and set an “overweight” rating for the company in a report on Wednesday. Finally, Piper Sandler set a $286.00 price objective on McDonald’s in a research note on Tuesday. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $325.44.

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.