J. Stern & Co. LLP Buys 2,515,515 Shares of McDonald’s Corporation $MCD

J. Stern & Co. LLP increased its stake in McDonald’s Corporation (NYSE:MCD) by 9,867.5% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 2,541,008 shares of the fast-food giant’s stock after acquiring an additional 2,515,515 shares during the period. McDonald’s comprises about 0.2% of J. Stern & Co. LLP’s holdings, making the stock its 28th largest holding. J. Stern & Co. LLP’s holdings in McDonald’s were worth $776,608,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently modified their holdings of MCD. Your Advocates Ltd. LLP bought a new stake in shares of McDonald’s in the 4th quarter valued at about $27,000. Park Place Capital Corp lifted its stake in shares of McDonald’s by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after acquiring an additional 45 shares during the last quarter. IFC & Insurance Marketing Inc. bought a new stake in shares of McDonald’s in the 4th quarter valued at about $29,000. Abound Financial LLC bought a new stake in shares of McDonald’s in the 4th quarter valued at about $30,000. Finally, DecisionPoint Financial LLC lifted its stake in shares of McDonald’s by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock valued at $31,000 after acquiring an additional 97 shares during the last quarter. Institutional investors own 70.29% of the company’s stock.

Insider Buying and Selling

In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of the company’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 transaction of $1,493,248.64. Following the transaction, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction that occurred 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 transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 11,307 shares of company stock worth $3,262,622 in the last quarter. Company insiders own 0.26% of the company’s stock.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is bringing back its fried apple pie for America’s 250th birthday, a nostalgic limited-time item that could help drive traffic and sales while generating a lot of consumer buzz. AP News – McDonald’s is serving fried apple pie again for America’s 250th birthday
• Positive Sentiment: The company is also being highlighted for bringing back other fan-favorite menu items after decades away, reinforcing the view that McDonald’s is using nostalgia-based offerings to support customer engagement. Article – McDonald’s Is Bringing Back a Highly Requested Menu Item for the First Time in Over 30 Years
• Positive Sentiment: McDonald’s is testing expanded beverage options, including custom sodas, refreshers and Red Bull-based drinks, which could open a new source of incremental sales and improve ticket size. Yahoo Finance – McDonald’s 70-Year Coke Alliance Enters New Beverage Test
• Neutral Sentiment: Several stories focus on McDonald’s brand strength, including celebrity mentions and “coolest locations” lists, which are good for visibility but likely have limited direct impact on earnings. Article – Tina Fey Loves This McDonald’s Menu Item So Much, She Walked Down the Highway in Italy To Order It
• Neutral Sentiment: The company is also making operational changes, including rebuilding a classic Gahanna location with a modern look and altering drive-thru features, but these are more incremental than transformative. AOL – McDonald’s to demolish classic Gahanna location and rebuild it with modern look
• Negative Sentiment: One article about a possible $1 drive-thru fee and another criticizing the chain’s ice cream machine reliability could add to customer frustration and pressure sentiment, even if the financial impact is unclear. Article – Is McDonald’s adding a $1 fee to drive-thru orders? Customers want answers
• Negative Sentiment: Coverage that McCrispy Strips are being revamped after customer criticism suggests McDonald’s is responding to product complaints, which may weigh slightly on sentiment around menu execution. AOL – McDonald’s to Revamp McCrispy Strips After Customer Criticism

McDonald’s Price Performance

MCD opened at $287.99 on Wednesday. The business has a 50 day simple moving average of $288.58 and a two-hundred day simple moving average of $306.42. The firm has a market capitalization of $204.62 billion, a price-to-earnings ratio of 23.74, a PEG ratio of 2.85 and a beta of 0.41. McDonald’s Corporation has a one year low of $271.85 and a one year high of $341.75.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating analysts’ consensus estimates of $2.74 by $0.09. The business had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.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 company posted $2.67 EPS. As a group, sell-side analysts expect that McDonald’s Corporation will post 12.93 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.6%. McDonald’s’s dividend payout ratio is presently 61.34%.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Erste Group Bank lowered McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Tigress Financial boosted their target price on McDonald’s from $360.00 to $385.00 and gave the company a “buy” rating in a research note on Friday, March 6th. Robert W. Baird set a $305.00 target price on McDonald’s in a research note on Thursday, May 7th. Barclays lowered their target price on McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. Finally, Morgan Stanley set a $331.00 price target on McDonald’s in a research report on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $336.26.

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.