James Investment Research Inc. Reduces Position in McDonald’s Corporation $MCD

James Investment Research Inc. trimmed its position in McDonald’s Corporation (NYSE:MCD) by 7.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 31,171 shares of the fast-food giant’s stock after selling 2,363 shares during the quarter. McDonald’s makes up 1.1% of James Investment Research Inc.’s investment portfolio, making the stock its 20th largest position. James Investment Research Inc.’s holdings in McDonald’s were worth $9,688,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of McDonald’s by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock worth $22,112,675,000 after acquiring an additional 703,458 shares in the last quarter. State Street Corp raised 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 acquiring an additional 959,140 shares in the last quarter. Geode Capital Management LLC lifted its stake in McDonald’s by 0.4% during 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. Price T Rowe Associates Inc. MD lifted its stake in McDonald’s by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant’s stock worth $2,895,768,000 after purchasing an additional 277,617 shares during the last quarter. Finally, Norges Bank acquired a new position in McDonald’s in the fourth quarter valued at approximately $2,890,438,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on MCD shares. Robert W. Baird set a $305.00 price target on shares of McDonald’s in a research note on Thursday, May 7th. TD Cowen restated a “hold” rating on shares of McDonald’s in a research report on Friday, June 12th. Morgan Stanley set a $331.00 target price on shares of McDonald’s in a report on Friday, May 8th. Cfra raised shares of McDonald’s to a “buy” rating in a research report on Friday, May 8th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a research note on Monday, May 11th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $335.70.

McDonald’s Price Performance

Shares of McDonald’s stock opened at $269.78 on Thursday. The firm’s fifty day simple moving average is $281.07 and its 200-day simple moving average is $303.64. McDonald’s Corporation has a 12 month low of $264.53 and a 12 month high of $341.75. The stock has a market capitalization of $191.68 billion, a price-to-earnings ratio of 22.24, a PEG ratio of 2.69 and a beta of 0.41.

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

McDonald’s Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were paid a dividend of $1.86 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.8%. McDonald’s’s dividend payout ratio is currently 61.34%.

Insider Activity at McDonald’s

In other news, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction that occurred 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 transaction, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 11,307 shares of company stock valued at $3,262,622. 0.26% of the stock is owned by company insiders.

More McDonald’s News

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

• Positive Sentiment: McDonald’s is nearing Dividend King status, and its dividend yield has risen to nearly 2.8%, which may attract income-focused investors looking to accumulate shares at lower levels. This Wannabe Dividend King Had a Tough H1. Expect Some Relief in H2.
• Positive Sentiment: Wall Street brokerage sentiment remains constructive, with the average recommendation on McDonald’s still effectively a Buy, reinforcing the view that analysts see upside from current levels. Brokers Suggest Investing in McDonald’s (MCD): Read This Before Placing a Bet
• Positive Sentiment: McDonald’s hired Bryan Brown as U.S. chief development officer, a move that could support domestic expansion and long-term growth. McDonald’s names Bryan Brown U.S. chief development officer
• Positive Sentiment: Articles highlighting McDonald’s stock as potentially having “hit bottom” may be encouraging bargain-hunting after the recent weakness. McDonald’s Corp Stock May Have Hit Bottom – Ways to Play MCD Stock
• Neutral Sentiment: Promotions such as discounted Big Macs, FIFA collectibles, and menu nostalgia pieces may help brand engagement, but they are unlikely to move the stock materially on their own.
• Negative Sentiment: One article says McDonald’s remains close to 52-week lows because of margin pressure from franchises and weakening foot traffic, which is the main bearish narrative weighing on the shares. Should You Buy McDonald’s (MCD) At 52-Week Lows
• Negative Sentiment: Customer complaints about hidden upcharges and dissatisfaction with new menu items could add to concerns about pricing backlash and weaker consumer sentiment. McDonald’s customers furious to discover new hidden upcharge on classic menu item: ‘That’s really shady’

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.