Pacer Advisors Inc. Trims Stock Holdings in McDonald’s Corporation $MCD

Pacer Advisors Inc. reduced its holdings in shares of McDonald’s Corporation (NYSE:MCD) by 5.6% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 119,798 shares of the fast-food giant’s stock after selling 7,093 shares during the period. Pacer Advisors Inc.’s holdings in McDonald’s were worth $36,614,000 at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in McDonald’s by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock worth $22,112,675,000 after purchasing an additional 703,458 shares during the period. State Street Corp boosted its stake in shares of McDonald’s by 2.7% during the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after purchasing an additional 959,140 shares during the period. Geode Capital Management LLC boosted its stake in shares of McDonald’s by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock valued at $5,195,965,000 after purchasing an additional 76,090 shares during the period. Price T Rowe Associates Inc. MD grew its holdings in shares of McDonald’s by 3.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant’s stock worth $2,895,768,000 after purchasing an additional 277,617 shares during the last quarter. Finally, Norges Bank bought a new position in shares of McDonald’s in the fourth quarter worth about $2,890,438,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on MCD shares. Robert W. Baird set a $305.00 price objective on shares of McDonald’s in a report on Thursday, May 7th. Erste Group Bank downgraded shares of McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Evercore set a $350.00 target price on shares of McDonald’s in a research report on Friday, May 8th. Morgan Stanley set a $331.00 price target on shares of McDonald’s in a research note on Friday, May 8th. Finally, Barclays lowered 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. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, McDonald’s has an average rating of “Moderate Buy” and a consensus target price of $336.26.

McDonald’s Price Performance

MCD stock opened at $279.00 on Friday. McDonald’s Corporation has a 1-year low of $271.85 and a 1-year high of $341.75. The business has a 50-day moving average price of $286.98 and a 200 day moving average price of $305.80. The company has a market capitalization of $198.23 billion, a P/E ratio of 23.00, a PEG ratio of 2.78 and a beta of 0.41.

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, topping the consensus estimate of $2.74 by $0.09. The company had revenue of $6.52 billion for the quarter, compared to analysts’ expectations of $6.47 billion. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The firm’s quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the business earned $2.67 EPS. On average, analysts anticipate that McDonald’s Corporation will post 12.93 earnings per share for the current fiscal year.

McDonald’s Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were paid a dividend of $1.86 per share. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. McDonald’s’s dividend payout ratio (DPR) is currently 61.34%.

Trending Headlines about McDonald’s

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

• Positive Sentiment: McDonald’s is reviving its original Fried Apple Pie for the first time since 1992, a nostalgia-driven menu move that could boost customer traffic, social buzz, and limited-time sales. McDonald’s (MCD) Brings Back Fried Apple Pie After More Than 30 Years
• Positive Sentiment: Recent analyst coverage highlighted McDonald’s value meals, menu innovation, and brand activations as helping lift same-store sales, with Australia cited as a key area of momentum. McDonald’s Blends Value With Brand Activations: Is It Paying Off?
• Positive Sentiment: Seeking Alpha published a rating upgrade arguing McDonald’s “McValue” strategy has finally reached buy territory, reinforcing the case that the company’s value offerings are supporting demand. McDonald’s (Mc)Value Finally Reaches Buy Territory (Rating Upgrade)
• Neutral Sentiment: Coverage around McDonald’s AI drive-thru plans suggests the company is still experimenting with automation to improve service and efficiency, but the near-term stock impact is unclear. McDonald’s AI drive-thru may take your next order
• Neutral Sentiment: Several articles about historic landmarks, Happy Meal toys, and food trivia are mostly brand-related publicity and are less likely to materially move the stock on their own.
• Negative Sentiment: Some recent commentary remains cautious, with one article arguing McDonald’s is still delivering but not enough to justify a buy, which may temper enthusiasm for the shares. McDonald’s: Still Delivering, But Not Enough For A Buy

Insider Activity at McDonald’s

In related news, 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 transaction, the executive vice president owned 6,268 shares of the company’s stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction 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 sale, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 11,307 shares of company stock worth $3,262,622. 0.26% of the stock is currently owned by corporate insiders.

About McDonald’s

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.