Brown Shipley& Co Ltd Acquires 6,639 Shares of McDonald’s Corporation $MCD

Brown Shipley& Co Ltd lifted its position in McDonald’s Corporation (NYSE:MCD) by 2,963.8% in the 3rd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 6,863 shares of the fast-food giant’s stock after acquiring an additional 6,639 shares during the quarter. McDonald’s makes up about 0.8% of Brown Shipley& Co Ltd’s holdings, making the stock its 25th biggest holding. Brown Shipley& Co Ltd’s holdings in McDonald’s were worth $1,585,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in MCD. Bank of New York Mellon Corp bought a new stake in McDonald’s in the second quarter worth approximately $1,359,276,000. Diamant Asset Management Inc. raised its stake in shares of McDonald’s by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock valued at $806,917,000 after buying an additional 2,587,986 shares in the last quarter. J. Stern & Co. LLP lifted its stake in McDonald’s by 9,867.5% during the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock worth $776,608,000 after purchasing an additional 2,515,515 shares during the period. Arrowstreet Capital Limited Partnership grew its position in McDonald’s by 49.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant’s stock valued at $948,779,000 after acquiring an additional 1,033,041 shares during the period. Finally, State Street Corp increased its position in shares of 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 worth $10,997,789,000 after purchasing an additional 959,140 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald’s Stock Down 0.2%

NYSE:MCD traded down $0.56 during trading hours on Friday, reaching $236.34. The company had a trading volume of 2,731,225 shares, compared to its average volume of 4,215,959. McDonald’s Corporation has a twelve month low of $229.20 and a twelve month high of $341.75. The firm has a market cap of $167.25 billion, a price-to-earnings ratio of 19.20, a P/E/G ratio of 2.58 and a beta of 0.44. The business’s 50-day simple moving average is $256.02 and its two-hundred day simple moving average is $274.80.

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, beating analysts’ consensus estimates of $3.32 by $0.06. The firm had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The business’s revenue was up 3.7% on a year-over-year basis. During the same period last year, the company earned $3.19 earnings per share. As a group, equities analysts predict that McDonald’s Corporation will post 12.85 earnings per share for the current year.

McDonald’s Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a $1.93 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a yield of 3.3%. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s dividend payout ratio (DPR) is presently 62.71%.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on MCD shares. HSBC lowered their price target on shares of McDonald’s from $357.00 to $356.00 and set a “buy” rating for the company in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft cut their target price on McDonald’s from $325.00 to $300.00 and set a “buy” rating on the stock in a research note on Monday, September 14th. TD Cowen decreased their price objective on McDonald’s from $282.00 to $270.00 and set a “hold” rating for the company in a report on Thursday, September 24th. Gordon Haskett decreased their price objective on shares of McDonald’s from $315.00 to $285.00 and set a “buy” rating for the company in a research report on Thursday, September 24th. Finally, JPMorgan Chase & Co. reduced their price objective on shares of McDonald’s from $280.00 to $260.00 and set an “overweight” rating for the company in a research report on Thursday, September 24th. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, McDonald’s presently has an average rating of “Moderate Buy” and a consensus target price of $295.94.

Key McDonald’s News

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

• Positive Sentiment: McDonald’s raised its quarterly dividend earlier than expected and appointed a new president for its U.S. business. The moves signal continued confidence in shareholder returns while management addresses softer U.S. traffic and uneven international performance. What Is McDonald’s Signaling With Its Faster Dividend And New US Chief?
• Positive Sentiment: Some analysts and investment publications view McDonald’s valuation as attractive, citing its high-margin franchise model, strong cash generation and discounted share price. A Seeking Alpha contributor upgraded the stock, while BetterInvesting identified MCD as an “Undervalued Stock.” McDonald’s: Same-Store Sales Are An Overrated Metric
• Neutral Sentiment: The return of the Monopoly promotion, new restaurant experiences and efforts such as the Chicago Marathon pickle-juice giveaway could support brand engagement, although their effect on sales and earnings is uncertain. McDonald’s Monopoly Returns
• Negative Sentiment: McDonald’s faces a proposed federal class-action lawsuit alleging that its AI-assisted pricing tools coordinated menu prices among franchisees, potentially raising antitrust, regulatory and reputational risks. The company denies the allegations, saying the complaint contains inaccuracies and that AI does not set menu prices. McDonald’s Sued Over Alleged AI-Powered Menu Price-Fixing
• Negative Sentiment: U.S. franchisees are reportedly resisting the approximately $8.5 billion “Next” remodeling program, with upgrades potentially costing at least $800,000 per location. The pushback raises execution, franchise-economics and capital-allocation concerns. McDonald’s Franchise Modernization Plan
• Negative Sentiment: Reports that value promotions, including $5 meals and $6 combos, have not restored customer visits suggest persistent affordability and traffic problems. Bernstein cut its price target from $295 to $250 and assigned a “market perform” rating, reinforcing the cautious outlook. McDonald’s Deals Are Not Winning Customers Back

McDonald’s Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.