Sapient Capital LLC Sells 2,651 Shares of McDonald’s Corporation $MCD

Sapient Capital LLC lessened its stake in McDonald’s Corporation (NYSE:MCD) by 26.7% in the 2nd quarter, Holdings Channel reports. The institutional investor owned 7,284 shares of the fast-food giant’s stock after selling 2,651 shares during the quarter. Sapient Capital LLC’s holdings in McDonald’s were worth $1,969,000 as of its most recent SEC filing.

Other large investors also recently made changes to their positions in the company. IFC & Insurance Marketing Inc. bought a new position in McDonald’s during the 4th quarter worth about $29,000. Abound Financial LLC acquired a new stake in shares of McDonald’s in the 4th quarter valued at about $30,000. Entrust Financial LLC bought a new stake in shares of McDonald’s in the fourth quarter valued at about $31,000. Purpose Unlimited Inc. bought a new stake in shares of McDonald’s in the fourth quarter valued at about $31,000. Finally, GKV Capital Management Co. Inc. acquired a new position in shares of McDonald’s during the first quarter worth about $33,000. 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: Valuation may attract contrarian buyers: McDonald’s is trading at roughly 19.15 times earnings, below the restaurant industry’s average multiple. Analysts point to global expansion, digital initiatives and new product efforts as possible catalysts for a recovery. McDonald’s Trades at 19.15X P/E: Is This a Discounted Opportunity?
• Positive Sentiment: Promotional activity could support traffic: McDonald’s is bringing back popular menu items, launching a Texas-themed meal with collectible cups and promoting limited-time products. These campaigns may encourage visits and improve near-term sales, though their financial impact is unproven. McDonald’s launches exclusive state-themed meal
• Neutral Sentiment: Brand visibility remains high: Coverage of McDonald’s breakfast offerings, Grimace appearances, collectible merchandise and Warren Buffett’s long-standing affinity for the brand reinforces consumer awareness but is unlikely to materially change earnings expectations. The best McDonald’s breakfast sandwich isn’t on the menu
• Negative Sentiment: U.S. consumer weakness is the main concern: Reports describe consumer-focused stocks, including McDonald’s, as signaling softer spending in middle America. Articles also highlight customers shifting to competing fast-food chains, increasing pressure on traffic and comparable sales. Wall Street worried about consumer stocks
• Negative Sentiment: Value positioning remains problematic: Coverage says McDonald’s $3 value offering has not fully delivered for customers or the company, raising concerns about affordability, franchisee economics and the effectiveness of discounting. Why you can’t find McDonald’s $3 value menu

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Weiss Ratings downgraded McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. Cfra upgraded McDonald’s to a “buy” rating in a research note on Friday, May 8th. Guggenheim reduced their price target on McDonald’s from $320.00 to $290.00 and set a “neutral” rating for the company in a research report on Wednesday, August 5th. Wells Fargo & Company decreased their price target on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a research note on Thursday, July 16th. Finally, Freedom Capital upgraded shares of McDonald’s from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 5th. One 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 company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $321.35.

McDonald’s Price Performance

McDonald’s stock opened at $255.69 on Friday. The company has a market cap of $180.94 billion, a price-to-earnings ratio of 20.77, a P/E/G ratio of 2.80 and a beta of 0.41. The firm has a 50-day moving average of $269.67 and a 200-day moving average of $289.39. McDonald’s Corporation has a one year low of $255.49 and a one year high of $341.75.

McDonald’s (NYSE:MCD) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. The business had revenue of $7.10 billion for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.19 earnings per share. As a group, sell-side analysts expect that McDonald’s Corporation will post 12.87 earnings per share for the current year.

McDonald’s Announces Dividend

The company 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 $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s dividend payout ratio (DPR) is 60.44%.

Insider Buying and Selling at McDonald’s

In other news, insider Joseph 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 transaction of $1,493,248.64. Following the transaction, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.26% of the stock is owned by corporate insiders.

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.