Syon Capital LLC Lowers Holdings in McDonald’s Corporation $MCD

Syon Capital LLC trimmed its position in shares of McDonald’s Corporation (NYSE:MCD) by 33.0% during the 2nd quarter, according to its most recent 13F filing with the SEC. The fund owned 7,248 shares of the fast-food giant’s stock after selling 3,577 shares during the quarter. Syon Capital LLC’s holdings in McDonald’s were worth $1,959,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of MCD. IFC & Insurance Marketing Inc. bought a new stake in shares of McDonald’s during the fourth quarter valued at approximately $29,000. Abound Financial LLC bought a new position in McDonald’s in the 4th quarter valued at approximately $30,000. Entrust Financial LLC bought a new position in McDonald’s in the 4th quarter valued at approximately $31,000. Purpose Unlimited Inc. purchased a new stake in McDonald’s during the 4th quarter valued at $31,000. Finally, GKV Capital Management Co. Inc. purchased a new stake in McDonald’s during the 1st quarter valued at $33,000. 70.29% of the stock is currently owned by institutional investors.

McDonald’s News Summary

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

Analysts Set New Price Targets

MCD has been the subject of a number of research analyst reports. Barclays reduced their target price on McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Citigroup increased their price objective on McDonald’s from $335.00 to $345.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Argus reduced their price objective on McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a report on Wednesday, August 26th. Robert W. Baird upgraded McDonald’s to a “hold” rating in a report on Monday, August 24th. Finally, Sanford C. Bernstein reissued a “market perform” rating and issued a $295.00 target price on shares of McDonald’s in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $321.35.

Insider Buying and Selling

In other McDonald’s news, insider Joseph Erlinger sold 5,252 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.26% of the stock is currently owned by corporate insiders.

McDonald’s Price Performance

MCD opened at $255.69 on Friday. The firm has a market cap of $180.94 billion, a P/E ratio of 20.77, a PEG ratio of 2.80 and a beta of 0.41. McDonald’s Corporation has a 1-year low of $255.49 and a 1-year high of $341.75. The company has a 50 day simple moving average of $269.67 and a two-hundred day simple moving average of $289.39.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating the consensus estimate of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The firm had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same period last year, the firm earned $3.19 EPS. The company’s revenue was up 3.7% on a year-over-year basis. Equities analysts anticipate that McDonald’s Corporation will post 12.87 earnings per share for the current year.

McDonald’s Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio is presently 60.44%.

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.