Meritage Portfolio Management Cuts Stock Holdings in McDonald’s Corporation $MCD

Meritage Portfolio Management reduced its stake in McDonald’s Corporation (NYSE:MCD) by 63.7% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,621 shares of the fast-food giant’s stock after selling 2,839 shares during the period. Meritage Portfolio Management’s holdings in McDonald’s were worth $493,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Federated Hermes Inc. boosted its position in shares of McDonald’s by 84.1% in the 2nd quarter. Federated Hermes Inc. now owns 141,775 shares of the fast-food giant’s stock valued at $41,422,000 after purchasing an additional 64,757 shares during the period. Welch Group LLC boosted its holdings in shares of McDonald’s by 1.1% in the second quarter. Welch Group LLC now owns 206,004 shares of the fast-food giant’s stock valued at $60,188,000 after acquiring an additional 2,180 shares during the period. Global X Japan Co. Ltd. boosted its holdings in shares of McDonald’s by 236.7% in the third quarter. Global X Japan Co. Ltd. now owns 6,502 shares of the fast-food giant’s stock valued at $1,976,000 after acquiring an additional 4,571 shares during the period. D.A. Davidson & CO. grew its position in shares of McDonald’s by 2.7% during the third quarter. D.A. Davidson & CO. now owns 143,492 shares of the fast-food giant’s stock worth $43,606,000 after acquiring an additional 3,774 shares during the last quarter. Finally, Choreo LLC increased its holdings in shares of McDonald’s by 1.7% in the 2nd quarter. Choreo LLC now owns 58,515 shares of the fast-food giant’s stock valued at $17,096,000 after acquiring an additional 954 shares during the period. 70.29% of the stock is owned by institutional investors and hedge funds.

McDonald’s Stock Performance

Shares of NYSE MCD opened at $308.52 on Friday. McDonald’s Corporation has a one year low of $276.53 and a one year high of $326.32. The firm has a market capitalization of $219.71 billion, a P/E ratio of 26.32, a PEG ratio of 3.06 and a beta of 0.53. The company’s fifty day moving average is $308.61 and its two-hundred day moving average is $305.32.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Wednesday, November 5th. The fast-food giant reported $3.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.11). The company had revenue of $7.08 billion during the quarter, compared to analysts’ expectations of $7.10 billion. McDonald’s had a net margin of 32.04% and a negative return on equity of 280.89%. The business’s revenue for the quarter was up 3.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.23 EPS. On average, sell-side analysts forecast that McDonald’s Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald’s Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were given a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Monday, December 1st. This is a positive change from McDonald’s’s previous quarterly dividend of $1.77. McDonald’s’s payout ratio is 63.48%.

Wall Street Analysts Forecast Growth

MCD has been the topic of a number of recent research reports. Royal Bank Of Canada began coverage on McDonald’s in a report on Wednesday, October 8th. They issued a “sector perform” rating and a $320.00 target price on the stock. BMO Capital Markets reissued an “outperform” rating on shares of McDonald’s in a research note on Thursday, November 6th. Sanford C. Bernstein restated an “overweight” rating and set a $372.00 price objective on shares of McDonald’s in a research report on Wednesday, January 7th. Robert W. Baird raised their target price on shares of McDonald’s from $322.00 to $325.00 and gave the stock a “neutral” rating in a research note on Thursday, November 6th. Finally, Truist Financial lifted their target price on shares of McDonald’s from $350.00 to $356.00 and gave the company a “buy” rating in a report on Thursday, January 8th. Thirteen investment analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $328.88.

McDonald’s News Summary

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

• Positive Sentiment: McDonald’s Canada locked a $1 coffee price (and previously promoted $5 meal pricing), a consumer-friendly move expected to sustain traffic and PR momentum in a key market, though it may slightly pressure short-term margins. McDonald’s Canada freezes coffee at $1 for the next year
• Positive Sentiment: Company is investing in AI to address operational challenges (order accuracy, drive?thru efficiency and staffing), which could produce medium?term cost savings and better throughput. McDonald’s bets on AI in 2026 to fix a major problem
• Positive Sentiment: Planned changes to drive?thru lanes and operations aim to boost throughput and reduce wait times — a direct unit-level productivity lever that can improve sales per store. McDonald’s is about to make big changes to its drive-thru lanes
• Positive Sentiment: Marketing and menu moves (Pokémon Happy Meal return, Big Arch rollout, a new permanent item) should drive near?term traffic and incremental AUV gains. These are low?capital, high?impact plays for comps. Pokémon Happy Meal return Big Arch Returns to McDonald’s—but Only Select Stores
• Positive Sentiment: Recent reports show a revived “old?school” strategy lifted sales ~2.4% at some units — evidence that targeted tactics can restore momentum. McDonald’s Sales Jump 2.4% After They Revived This Old School Strategy
• Neutral Sentiment: Zacks and other outlets note heightened investor attention on MCD — useful context but not a direct directional catalyst unless followed by earnings or guidance surprises. Investors Heavily Search McDonald’s Corporation
• Neutral Sentiment: Earnings previews expect single?digit EPS growth next quarter, so results or guidance could move the stock either way — watch the upcoming report. What to Expect From McDonald’s Next Quarterly Earnings Report
• Neutral Sentiment: CEO commentary on food trends and localized menu experiments highlights ongoing product innovation; useful for brand positioning but indirect for immediate earnings. McDonald’s CEO reveals 3 food trends that could shape 2026
• Negative Sentiment: Local expansion setback: a city rejected a McDonald’s “city restaurant” plan — a reminder that real estate/permit risks can slow growth in specific markets. McDonald’s city restaurant plan rejected
• Negative Sentiment: Insider selling: Joseph Erlinger (President, Intl. Ops) sold ~2,626 shares (~$805k), trimming his stake by ~33% — may be read by some investors as reduced insider conviction. SEC Filing
• Negative Sentiment: Legal risk: a class?action suit alleges the McRib lacks “actual rib meat,” which could create litigation expense and negative publicity if it escalates. McDonald’s faces class action fraud lawsuit over lack of ‘actual rib meat’ in McRib

Insider Transactions at McDonald’s

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,486 shares of the business’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $320.00, for a total transaction of $795,520.00. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $2,005,760. The trade was a 28.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Manuel Jm Steijaert sold 6,567 shares of the company’s stock in a transaction on Monday, December 1st. The shares were sold at an average price of $305.50, for a total value of $2,006,218.50. Following the completion of the sale, the executive vice president directly owned 4,606 shares in the company, valued at $1,407,133. This trade represents a 58.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 45,142 shares of company stock worth $13,841,169 over the last quarter. Insiders own 0.25% of the company’s stock.

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.