SCS Capital Management LLC Decreases Stake in McDonald’s Corporation $MCD

SCS Capital Management LLC reduced its position in McDonald’s Corporation (NYSE:MCD) by 25.4% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 5,311 shares of the fast-food giant’s stock after selling 1,813 shares during the period. SCS Capital Management LLC’s holdings in McDonald’s were worth $1,623,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in McDonald’s by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock valued at $22,112,675,000 after buying an additional 703,458 shares during the last quarter. State Street Corp boosted its position in McDonald’s by 0.6% in the 3rd quarter. State Street Corp now owns 35,024,857 shares of the fast-food giant’s stock valued at $10,643,704,000 after buying an additional 196,505 shares during the last quarter. Geode Capital Management LLC boosted its position in McDonald’s by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock valued at $5,195,965,000 after buying an additional 76,090 shares during the last quarter. Norges Bank bought a new position in shares of McDonald’s during the fourth quarter worth about $2,890,438,000. Finally, Legal & General Group Plc lifted its position in shares of McDonald’s by 6.4% during 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. 70.29% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s unveiled “McDonald’s NEXT,” a companywide growth strategy focused on automation, improved restaurant design, better food quality, stronger customer service, and more effective social media marketing. Article Title
• Positive Sentiment: Analysts and recent commentary suggest McDonald’s is gaining market share in a cautious consumer environment by leaning on low-cost meals, menu innovation, and strong value marketing. Article Title
• Neutral Sentiment: McDonald’s also highlighted plans around restaurant operating efficiency and franchisee support, which could improve margins over time but will likely take time to show up in results. Article Title
• Neutral Sentiment: An executive vice president sold shares in a recent insider transaction, which is worth watching but is not necessarily a fundamental red flag on its own. Article Title

Insider Activity at McDonald’s

In other McDonald’s news, insider Joseph M. Erlinger sold 333 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $280.11, for a total value of $93,276.63. Following the sale, the insider owned 7,734 shares in the company, valued at approximately $2,166,370.74. This trade represents a 4.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The shares were 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 in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 8,681 shares of company stock worth $2,631,594 in the last 90 days. 0.26% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. Barclays reduced their price target on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. Morgan Stanley set a $331.00 price target on shares of McDonald’s in a research report on Friday, May 8th. Royal Bank Of Canada reduced their price target on shares of McDonald’s from $330.00 to $305.00 and set a “sector perform” rating on the stock in a research report on Friday, May 8th. Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and increased their price target for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and set a $340.00 price target on shares of McDonald’s in a research report on Thursday, February 12th. Sixteen analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $334.45.

McDonald’s Stock Down 1.1%

Shares of NYSE MCD opened at $276.19 on Tuesday. The firm’s 50-day moving average price is $294.66 and its two-hundred day moving average price is $308.42. McDonald’s Corporation has a 52-week low of $271.98 and a 52-week high of $341.75. The stock has a market capitalization of $196.23 billion, a P/E ratio of 22.77, a P/E/G ratio of 2.78 and a beta of 0.41.

McDonald’s (NYSE:MCD) last issued its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $6.52 billion for the quarter, compared to analysts’ expectations of $6.47 billion. During the same quarter last year, the company posted $2.67 earnings per share. McDonald’s’s revenue was up 9.4% on a year-over-year basis. As a group, equities research analysts expect that McDonald’s Corporation will post 12.93 earnings per share for the current year.

McDonald’s Dividend Announcement

The firm also recently announced 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 of this dividend is Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald’s’s dividend payout ratio (DPR) is currently 61.34%.

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.