Sumitomo Mitsui Trust Group Inc. Decreases Stock Holdings in McDonald’s Corporation $MCD

Sumitomo Mitsui Trust Group Inc. lowered its holdings in McDonald’s Corporation (NYSE:MCD) by 4.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,901,282 shares of the fast-food giant’s stock after selling 81,500 shares during the period. Sumitomo Mitsui Trust Group Inc.’s holdings in McDonald’s were worth $590,899,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in the business. Your Advocates Ltd. LLP purchased a new stake in McDonald’s during the 4th quarter worth $27,000. Park Place Capital Corp raised its position in McDonald’s by 95.7% in the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after purchasing an additional 45 shares during the period. IFC & Insurance Marketing Inc. purchased a new position in McDonald’s in the fourth quarter valued at about $29,000. Abound Financial LLC acquired a new position in shares of McDonald’s during the fourth quarter worth about $30,000. Finally, Purpose Unlimited Inc. acquired a new position in shares of McDonald’s during the fourth quarter worth about $31,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Wall Street Analysts Forecast Growth

MCD has been the subject of several analyst reports. Rothschild & Co Redburn raised McDonald’s from a “sell” rating to a “neutral” rating and upped their target price for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Cfra upgraded McDonald’s to a “buy” rating in a report on Friday, May 8th. Erste Group Bank lowered McDonald’s from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Barclays decreased their price target on McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Finally, TD Cowen reaffirmed a “hold” rating on shares of McDonald’s in a research report on Friday, June 12th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $335.70.

More McDonald’s News

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

• Positive Sentiment: McDonald’s is leaning on promotions and pop-culture tie-ins to drive traffic, including a new BT21 Happy Meal collaboration and related Pokémon-style merchandising buzz that could support near-term sales. McDonald’s Reveals More On BT21 X Happy Meal Collaboration
• Positive Sentiment: Local and regional promotions, such as free fries for National French Fry Day and the return of limited-time menu items, may help create short-term customer traffic and engagement. McDonald’s giving away free medium fries in Corpus Christi and Victoria for National French Fry Day
• Neutral Sentiment: Coverage focused on McDonald’s franchise economics and brand marketing keeps the company in the spotlight, but these stories do not materially change the investment thesis by themselves. McDonald’s Franchise Owners Make A Surprising Amount Of Money
• Neutral Sentiment: Analyst and comparison pieces continue to frame McDonald’s as a defensive, lower-stress consumer stock, which supports the long-term case but does not appear to be a near-term catalyst. Buy these quality, low-stress stocks for the summer, says Jefferies
• Negative Sentiment: Several articles highlighted complaints that McDonald’s food no longer tastes as good as customers remember, plus reports that some loyal customers are choosing other fast-food chains instead, which can pressure traffic expectations. The McDonald’s Foods Customers Say No Longer Taste Like They Remember
• Negative Sentiment: Competitive headlines also showed rivals taking aim at McDonald’s with new menu offerings, underscoring ongoing pressure in the fast-food market. McDonald’s rival takes not-so-subtle swipe at the fast food giant with new chicken sandwiches

McDonald’s Price Performance

Shares of MCD stock opened at $278.44 on Thursday. The firm has a fifty day moving average of $279.20 and a two-hundred day moving average of $302.32. The firm has a market cap of $197.83 billion, a P/E ratio of 22.95, a P/E/G ratio of 2.81 and a beta of 0.41. McDonald’s Corporation has a 1-year low of $264.53 and a 1-year high of $341.75.

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, beating 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 business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the prior year, the business posted $2.67 EPS. The company’s revenue for the quarter was up 9.4% on a year-over-year basis. On average, sell-side analysts expect that McDonald’s Corporation will post 12.93 EPS for the current year.

McDonald’s Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were issued a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald’s’s payout ratio is currently 61.34%.

Insider Activity

In other news, insider Joseph M. Erlinger sold 5,252 shares of McDonald’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 completion of the transaction, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’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 value of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This trade 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 three months, insiders sold 11,307 shares of company stock valued at $3,262,622. 0.26% of the stock is owned by corporate insiders.

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.