Chiron Capital Management LLC acquired a new position in McDonald’s Corporation (NYSE:MCD – Free Report) during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 2,603 shares of the fast-food giant’s stock, valued at approximately $601,000.
A number of other institutional investors have also made changes to their positions in the business. Abound Financial LLC bought a new stake in McDonald’s during the fourth quarter worth about $30,000. Purpose Unlimited Inc. bought a new position in McDonald’s in the fourth quarter valued at approximately $31,000. GKV Capital Management Co. Inc. bought a new position in McDonald’s in the first quarter valued at approximately $33,000. Merkkuri Wealth Advisors LLC acquired a new position in shares of McDonald’s during the 1st quarter worth approximately $43,000. Finally, Burkett Financial Services LLC increased its position in shares of McDonald’s by 2,312.5% during the 3rd quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock worth $45,000 after purchasing an additional 185 shares during the last quarter. Institutional investors own 70.29% of the company’s stock.
Key Headlines Impacting McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s shares advanced even as the broader market weakened, indicating some relative strength and investor interest at depressed valuation levels. McDonald’s Increases Despite Market Slip
- Positive Sentiment: The company’s roughly $8.5 billion franchisee-support and modernization plan, along with personalized digital offers, value meals and streamlined marketing, could improve traffic and sales if execution improves. The planned “Archy” drive-through AI system may also support efficiency, although its benefits remain unproven. McDonald’s $8.5B Fix
- Positive Sentiment: Renewed promotions, including the Monopoly Go collaboration and potential Disney-villain Boo Buckets, could provide short-term customer engagement and seasonal sales support, though these campaigns are unlikely to change the long-term outlook by themselves. Monopoly Go Returns to McDonald’s
- Neutral Sentiment: At about 18 times earnings, MCD’s valuation may already reflect some of the turnaround risk, but investors still need evidence that the spending plan can restore sustainable growth. McDonald’s Trades at 18 Times Earnings
- Negative Sentiment: Shares remain down sharply over six months as weak U.S. sales, ineffective value-menu execution and reduced earnings estimates weigh on investor confidence. Analysts are questioning whether promotions and operational fixes can reverse the slowdown. McDonald’s Stock Down 23 Percent in Six Months
- Negative Sentiment: A proposed class-action lawsuit alleging problematic AI-driven menu pricing creates legal, reputational and regulatory risk, while reports of a poorly reviewed U.S. location highlight potential service and franchise-operator issues. McDonald’s AI Menu Pricing Lawsuit
McDonald’s Price Performance
McDonald’s (NYSE:MCD – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. 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 firm posted $3.19 earnings per share. The business’s revenue was up 3.7% on a year-over-year basis. On average, analysts forecast that McDonald’s Corporation will post 12.84 earnings per share for the current year.
McDonald’s Increases Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a $1.93 dividend. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Tuesday, December 1st. McDonald’s’s dividend payout ratio is presently 62.71%.
Analyst Ratings Changes
Several equities research analysts have recently commented on MCD shares. Weiss Ratings downgraded McDonald’s from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, October 2nd. HSBC decreased their target price on shares of McDonald’s from $357.00 to $356.00 and set a “buy” rating for the company in a research note on Wednesday, August 5th. DZ Bank restated a “buy” rating on shares of McDonald’s in a report on Thursday, September 24th. Jefferies Financial Group dropped their price target on shares of McDonald’s from $260.00 to $250.00 and set an “overweight” rating on the stock in a research report on Tuesday, September 29th. Finally, Argus cut their price target on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a research note on Wednesday, August 26th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, McDonald’s has a consensus rating of “Moderate Buy” and a consensus price target of $295.94.
Check Out Our Latest Stock Report on McDonald’s
About McDonald’s
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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