McDonald’s Corporation $MCD Stock: Carl P. Sherr & Co. LLC Cuts Holdings

Carl P. Sherr & Co. LLC cut its position in shares of McDonald’s Corporation (NYSE:MCD) by 44.7% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,448 shares of the fast-food giant’s stock after selling 1,981 shares during the quarter. Carl P. Sherr & Co. LLC’s holdings in McDonald’s were worth $565,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in MCD. GKV Capital Management Co. Inc. purchased a new stake in shares of McDonald’s in the 1st quarter valued at approximately $33,000. Valued Wealth Advisors LLC boosted its stake in McDonald’s by 121.1% in the 3rd quarter. Valued Wealth Advisors LLC now owns 168 shares of the fast-food giant’s stock worth $39,000 after purchasing an additional 92 shares during the period. POM Investment Strategies LLC grew its position in McDonald’s by 46.2% during the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after purchasing an additional 55 shares in the last quarter. Westfuller Advisors LLC grew its position in McDonald’s by 140.0% during the 2nd quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock worth $49,000 after purchasing an additional 105 shares in the last quarter. Finally, Burkett Financial Services LLC grew its position in McDonald’s by 2,312.5% during the 3rd quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock worth $45,000 after purchasing an additional 185 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.

McDonald’s Trading Down 0.6%

Shares of NYSE:MCD opened at $272.12 on Friday. The firm has a market cap of $192.06 billion, a price-to-earnings ratio of 21.53, a P/E/G ratio of 3.16 and a beta of 0.42. McDonald’s Corporation has a 1 year low of $229.20 and a 1 year high of $341.75. The business has a fifty day simple moving average of $250.24 and a 200 day simple moving average of $281.75.

McDonald’s (NYSE:MCD) last issued its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share for the quarter, topping the consensus estimate of $3.38 by $0.19. McDonald’s had a negative return on equity of 826.29% and a net margin of 32.38%. The company had revenue of $7.16 billion for the quarter, compared to analyst estimates of $7.28 billion. During the same period in the prior year, the firm posted $3.22 EPS. The business’s revenue was up 1.1% compared to the same quarter last year. On average, sell-side analysts forecast that McDonald’s Corporation will post 12.91 EPS for the current year.

McDonald’s Increases Dividend

The company also recently declared 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. This represents a $7.72 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Tuesday, December 1st. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s dividend payout ratio (DPR) is presently 58.86%.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on MCD. BTIG Research increased their target price on McDonald’s from $295.00 to $305.00 and gave the company a “buy” rating in a report on Thursday, November 5th. Citigroup raised their target price on McDonald’s from $295.00 to $315.00 and gave the stock a “buy” rating in a research report on Thursday, November 5th. Oppenheimer lowered their price target on McDonald’s from $325.00 to $295.00 and set an “outperform” rating on the stock in a report on Thursday, September 24th. Weiss Ratings lowered McDonald’s from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, October 2nd. Finally, Sanford C. Bernstein increased their price objective on McDonald’s from $250.00 to $280.00 and gave the stock a “market perform” rating in a research note on Thursday, November 5th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, McDonald’s has a consensus rating of “Moderate Buy” and a consensus target price of $297.82.

Recent McDonald’s Headlines

Investors following MCD have been watching these headlines:

• Positive Sentiment: McDonald’s has raised its dividend for 50 consecutive years and yields about 2.74%. Its franchise-heavy rent-and-royalty model is described as providing steady cash flow to support future payouts. McDonald’s Is a Dividend King With 50 Years of Raises
• Positive Sentiment: Uber is expanding its McDonald’s delivery partnership across 14 markets, which could increase delivery orders and customer engagement. Is Uber’s Expansion of Delivery Tie-Up With MCD a Growth Catalyst?
• Negative Sentiment: A valuation analysis argues MCD may be about 27% above its estimated fair value, raising the risk that optimism about cash flows and new initiatives is already reflected in the share price. McDonald’s (MCD) Stock Could Be 27% Overvalued On Fair Value

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.