Confluence Investment Management LLC Lowers Stock Position in McDonald’s Corporation $MCD

Confluence Investment Management LLC reduced its position in shares of McDonald’s Corporation (NYSE:MCD) by 5.8% during the second quarter, Holdings Channel reports. The firm owned 65,853 shares of the fast-food giant’s stock after selling 4,049 shares during the period. Confluence Investment Management LLC’s holdings in McDonald’s were worth $17,801,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Peterson Wealth Services increased its stake in shares of McDonald’s by 3,294.5% during the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock worth $3,600,000 after purchasing an additional 11,432 shares during the last quarter. Harbour Investments Inc. raised its holdings in shares of McDonald’s by 84.4% in the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant’s stock worth $10,853,000 after purchasing an additional 16,252 shares during the period. Capital International Sarl lifted its stake in McDonald’s by 10.4% in the fourth quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant’s stock valued at $19,639,000 after purchasing an additional 6,079 shares during the last quarter. North Dakota State Investment Board purchased a new position in McDonald’s in the fourth quarter valued at approximately $7,493,000. Finally, Pittenger & Anderson Inc. grew its holdings in McDonald’s by 21.9% during the fourth quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant’s stock valued at $6,567,000 after purchasing an additional 3,866 shares during the period. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald’s News Summary

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

• Positive Sentiment: McDonald’s second-quarter results could benefit from its new $3 menu, promotional initiatives and potential traffic tied to the World Cup. Investors will look for evidence that value offerings are increasing visits without materially damaging margins. McDonald’s Q2 Preview: World Cup, New $3 Menu, Higher Gas Prices – Which Theme Wins Out
• Neutral Sentiment: Options traders expect a substantial move following earnings, with some anticipating a potential new two-year low. The report and management’s outlook are likely to drive near-term volatility, particularly around U.S. comparable sales, international performance and franchisee margins. Here’s How Much McDonald’s Stock Is Expected to Move After Earnings
• Negative Sentiment: Budget-conscious consumers remain under financial pressure, raising concern that customers may trade down, reduce restaurant visits or limit discretionary purchases. This makes the performance of McDonald’s value strategy especially important in the earnings release. McDonald’s to Report Q2 Earnings as Budget-Conscious Consumers Remain Under Stress
• Negative Sentiment: Reports about lettuce-related illness and consumer safety concerns could weigh on restaurant traffic and brand sentiment, although the earnings reports will provide the clearest indication of whether such issues affected McDonald’s demand. Did Lettuce Illness Hurt Restaurants? These Reports Will Tell If Diners Feel Safe
• Negative Sentiment: Mizuho lowered its McDonald’s price target to $290, signaling reduced expectations even though the new target remains above recent trading levels. Mizuho Cuts McDonald’s Price Target to $290

McDonald’s Price Performance

McDonald’s stock opened at $266.02 on Tuesday. The firm has a market capitalization of $189.01 billion, a P/E ratio of 21.93, a PEG ratio of 2.91 and a beta of 0.41. McDonald’s Corporation has a one year low of $260.96 and a one year high of $341.75. The business has a fifty day moving average price of $274.55 and a 200-day moving average price of $297.32.

McDonald’s (NYSE:MCD) last released its quarterly earnings data 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. The company had revenue of $6.52 billion for 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%.The firm’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.67 EPS. Sell-side analysts expect that McDonald’s Corporation will post 12.86 earnings per share for the current fiscal year.

McDonald’s Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s payout ratio is presently 61.34%.

Insider Activity

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’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 directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the transaction, the insider directly 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 8,348 shares of company stock worth $2,355,634. Company insiders own 0.26% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have issued reports on MCD. Cfra upgraded McDonald’s to a “buy” rating in a research note on Friday, May 8th. Mizuho dropped their price target on McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a research report on Friday. Morgan Stanley cut their price target on McDonald’s from $331.00 to $322.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 15th. JPMorgan Chase & Co. decreased their price objective on McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a report on Monday, May 11th. Finally, Robert W. Baird set a $305.00 price objective on McDonald’s in a research note on Thursday, May 7th. Fifteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to data from MarketBeat, McDonald’s has an average rating of “Moderate Buy” and an average target price of $331.92.

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.