Quintet Private Bank Europe S.A. grew its stake in shares of McDonald’s Corporation (NYSE:MCD – Free Report) by 986.2% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 101,887 shares of the fast-food giant’s stock after buying an additional 92,507 shares during the period. McDonald’s makes up 1.1% of Quintet Private Bank Europe S.A.’s portfolio, making the stock its 24th biggest position. Quintet Private Bank Europe S.A.’s holdings in McDonald’s were worth $23,530,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors and hedge funds also recently modified their holdings of the company. Ascentis Wealth Management LLC increased its stake in McDonald’s by 4,008.8% in the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock valued at $22,768,000 after purchasing an additional 82,180 shares in the last quarter. Ridgewood Investments LLC bought a new position in shares of McDonald’s during the third quarter worth $1,026,000. Borer Denton & Associates Inc. grew its holdings in shares of McDonald’s by 16.9% in the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock valued at $3,746,000 after buying an additional 2,000 shares during the period. HighTower Advisors LLC grew its holdings in shares of McDonald’s by 7.1% in the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock valued at $397,822,000 after buying an additional 97,060 shares during the period. Finally, Peterson Wealth Services increased its position in shares of McDonald’s by 3,294.5% in the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock valued at $3,600,000 after buying an additional 11,432 shares in the last quarter. 70.29% of the stock is owned by institutional investors.
More McDonald’s News
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s increased its quarterly dividend and accelerated the timing of its dividend decision, reinforcing its appeal as an income stock. The appointment of a new U.S. president could also help address softer domestic traffic and improve execution. What Is McDonald’s Signaling With Its Faster Dividend And New US Chief?
- Positive Sentiment: Some analysts view McDonald’s compressed valuation, high-margin franchise model and strong cash generation as attractive after the stock’s decline. One Seeking Alpha analysis characterized the shares as an upgrade opportunity. McDonald’s: Same-Store Sales Are An Overrated Metric
- Positive Sentiment: The company’s $8.5 billion “McDonald’s Next” remodeling initiative, including renewed emphasis on customer experience and PlayPlace locations, could support traffic and strengthen the brand over time. The Monopoly promotion, featuring a $1 million prize and digital gameplay, provides an additional near-term marketing boost. McDonald’s Wants Its Franchisees to Modernize
- Neutral Sentiment: Sanford C. Bernstein lowered its price target from $295 to $250 and kept a “market perform” rating. The revised target still implies upside, but the cut signals reduced confidence in McDonald’s growth trajectory. Bernstein McDonald’s Price Target Update
- Negative Sentiment: McDonald’s faces a proposed federal class-action antitrust lawsuit alleging that its AI-assisted pricing tool shares nonpublic sales data and facilitates price coordination among franchisees. McDonald’s denies the allegations and says AI does not set menu prices, but the case creates legal, regulatory and reputational risk. McDonald’s sued over alleged AI-powered menu price-fixing
- Negative Sentiment: U.S. franchisees are reportedly resisting remodeling costs of at least $800,000 per restaurant. The pushback could delay the turnaround plan, pressure franchisee economics and increase execution risk. McDonald’s Franchisees Push Back on Remodeling Costs
- Negative Sentiment: Reports that value promotions are not bringing customers back, alongside complaints about higher prices and smaller portions, highlight continuing traffic and consumer-perception problems.
McDonald’s Stock Performance
McDonald’s (NYSE:MCD – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. During the same period last year, the business earned $3.19 EPS. The business’s quarterly revenue was up 3.7% on a year-over-year basis. On average, sell-side analysts anticipate that McDonald’s Corporation will post 12.85 earnings per share for the current fiscal year.
McDonald’s Increases Dividend
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be given a $1.93 dividend. This represents a $7.72 dividend on an annualized basis and a yield of 3.3%. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date of this dividend is Tuesday, December 1st. McDonald’s’s payout ratio is 60.44%.
Analyst Ratings Changes
Several analysts recently commented on the company. Robert W. Baird dropped their price objective on McDonald’s from $285.00 to $250.00 and set a “neutral” rating on the stock in a research note on Thursday, September 24th. Citigroup dropped their price target on McDonald’s from $310.00 to $305.00 and set a “buy” rating on the stock in a research report on Thursday, September 24th. Wells Fargo & Company cut their price objective on McDonald’s from $300.00 to $270.00 and set an “overweight” rating on the stock in a report on Monday. BTIG Research decreased their price objective on McDonald’s from $350.00 to $295.00 and set a “buy” rating for the company in a research report on Thursday, September 24th. Finally, Freedom Capital upgraded shares of McDonald’s from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $295.94.
View Our Latest Research Report on McDonald’s
McDonald’s Company 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.
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