Rational Advisors Inc. Grows Stock Position in McDonald’s Corporation $MCD

Rational Advisors Inc. lifted its stake in McDonald’s Corporation (NYSE:MCD) by 208.8% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 5,774 shares of the fast-food giant’s stock after buying an additional 3,904 shares during the period. Rational Advisors Inc.’s holdings in McDonald’s were worth $1,765,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in shares of McDonald’s by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock worth $22,112,675,000 after buying an additional 703,458 shares during the period. State Street Corp grew its stake in shares of McDonald’s by 0.6% in the third quarter. State Street Corp now owns 35,024,857 shares of the fast-food giant’s stock worth $10,643,704,000 after purchasing an additional 196,505 shares during the last quarter. Geode Capital Management LLC grew its stake 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 purchasing an additional 76,090 shares during the last quarter. Norges Bank bought a new stake in shares of McDonald’s in the fourth quarter worth about $2,890,438,000. Finally, Legal & General Group Plc grew its stake in shares of McDonald’s by 6.4% in the third quarter. Legal & General Group Plc now owns 4,757,967 shares of the fast-food giant’s stock worth $1,445,899,000 after purchasing an additional 286,284 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Trending Headlines about McDonald’s

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

• Positive Sentiment: McDonald’s unveiled its new “McDonald’s NEXT” strategy, centered on automation, improved restaurant design, better-tasting food, stronger hospitality, and more effective social media marketing. Investors may view this as a clear roadmap to reignite traffic and long-term sales growth. Article Title
• Positive Sentiment: Multiple articles highlighted that McDonald’s is leaning on value meals, chicken innovation, and restaurant upgrades to gain market share in a cautious consumer environment, which could help sustain demand even if spending stays weak. Article Title
• Positive Sentiment: Jim Cramer also named McDonald’s as a defensive stock to own outside the AI trade, suggesting it could benefit if investors rotate into steadier, out-of-favor sectors. Article Title
• Neutral Sentiment: McDonald’s strategy update also emphasizes making stores easier to run and improving efficiency, which could support margins over time but likely won’t show immediate results. Article Title
• Neutral Sentiment: An EVP recently sold shares, which can add some caution, but the transaction appears routine and is not by itself a strong fundamental warning. Article Title

Insider Activity

In other McDonald’s news, insider Joseph M. Erlinger sold 333 shares of the firm’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $280.11, for a total value of $93,276.63. Following the completion of the sale, the insider directly owned 7,734 shares in the company, valued at $2,166,370.74. This trade represents a 4.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, 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. Insiders sold 8,681 shares of company stock valued at $2,631,594 over the last 90 days. 0.26% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on MCD. JPMorgan Chase & Co. cut their target price on McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research note on Monday, May 11th. Weiss Ratings cut McDonald’s from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday. Cfra raised McDonald’s to a “buy” rating in a research note on Friday, May 8th. Wells Fargo & Company cut their target price on McDonald’s from $355.00 to $320.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Finally, Erste Group Bank cut McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Sixteen equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $334.45.

McDonald’s Price Performance

Shares of MCD opened at $276.61 on Wednesday. McDonald’s Corporation has a one year low of $271.98 and a one year high of $341.75. The company has a 50-day simple moving average of $294.66 and a two-hundred day simple moving average of $308.42. The firm has a market capitalization of $196.53 billion, a PE ratio of 22.80, a price-to-earnings-growth ratio of 2.75 and a beta of 0.41.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same period last year, the business posted $2.67 earnings per share. McDonald’s’s quarterly revenue was up 9.4% compared to the same quarter last year. Analysts expect that McDonald’s Corporation will post 12.93 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd will be issued a $1.86 dividend. The ex-dividend date is Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald’s’s dividend payout ratio (DPR) is 61.34%.

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.