McDonald’s Corporation $MCD Stock: Gables Capital Management Inc. Increases Stake

Gables Capital Management Inc. grew its holdings in shares of McDonald’s Corporation (NYSE:MCD) by 18.9% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 16,111 shares of the fast-food giant’s stock after purchasing an additional 2,560 shares during the quarter. McDonald’s makes up 1.3% of Gables Capital Management Inc.’s investment portfolio, making the stock its 19th largest holding. Gables Capital Management Inc.’s holdings in McDonald’s were worth $3,721,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in the business. Legacy Wealth Managment LLC ID grew its position in McDonald’s by 11.0% during the first quarter. Legacy Wealth Managment LLC ID now owns 372 shares of the fast-food giant’s stock valued at $116,000 after buying an additional 37 shares during the period. Signature Equity Partners LLC increased its holdings in McDonald’s by 3.6% during the first quarter. Signature Equity Partners LLC now owns 1,087 shares of the fast-food giant’s stock worth $338,000 after buying an additional 38 shares during the last quarter. Harbor Investment Advisory LLC raised its position in McDonald’s by 1.0% in the second quarter. Harbor Investment Advisory LLC now owns 4,019 shares of the fast-food giant’s stock worth $1,086,000 after acquiring an additional 38 shares during the period. Parkwoods Wealth Partners LLC raised its position in McDonald’s by 4.5% in the second quarter. Parkwoods Wealth Partners LLC now owns 891 shares of the fast-food giant’s stock worth $241,000 after acquiring an additional 38 shares during the period. Finally, Levin Capital Strategies L.P. raised its position in McDonald’s by 3.3% in the first quarter. Levin Capital Strategies L.P. now owns 1,234 shares of the fast-food giant’s stock worth $384,000 after acquiring an additional 39 shares during the period. 70.29% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research firms have recently weighed in on MCD. Mizuho reduced their target price on shares of McDonald’s from $290.00 to $260.00 and set a “neutral” rating for the company in a research report on Friday, October 30th. Freedom Broker lowered shares of McDonald’s from a “buy” rating to a “hold” rating and decreased their price target for the stock from $305.00 to $298.00 in a research note on Thursday, November 5th. Daiwa Securities Group lowered their price target on shares of McDonald’s from $309.00 to $293.00 and set an “outperform” rating on the stock in a report on Thursday, August 6th. Sanford C. Bernstein upped their price objective on McDonald’s from $250.00 to $280.00 and gave the company a “market perform” rating in a research note on Thursday, November 5th. Finally, Loop Capital dropped their price objective on McDonald’s from $301.00 to $273.00 and set a “hold” rating on the stock in a research note on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $297.82.

McDonald’s Stock Performance

Shares of McDonald’s stock opened at $282.11 on Wednesday. The stock has a market capitalization of $199.11 billion, a P/E ratio of 22.32, a P/E/G ratio of 3.25 and a beta of 0.42. McDonald’s Corporation has a 52-week low of $229.20 and a 52-week high of $341.75. The stock’s 50-day simple moving average is $249.44 and its 200 day simple moving average is $282.33.

McDonald’s (NYSE:MCD) last issued its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share for the quarter, topping analysts’ consensus estimates of $3.38 by $0.19. The firm had revenue of $7.16 billion during the quarter, compared to analyst estimates of $7.28 billion. McDonald’s had a net margin of 32.38% and a negative return on equity of 826.29%. The company’s quarterly revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the business earned $3.22 earnings per share. Equities research analysts forecast that McDonald’s Corporation will post 12.91 EPS for the current fiscal year.

McDonald’s Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a dividend of $1.93 per share. This represents a $7.72 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Tuesday, December 1st. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s dividend payout ratio is currently 58.86%.

Trending Headlines about McDonald’s

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

• Positive Sentiment: McDonald’s is expanding its Uber partnership across 14 markets, adding delivery and digital-ordering capabilities and loyalty benefits. The effort could improve convenience and generate incremental sales. McDonald’s Expands Uber Partnership: Can It Drive More Growth?
• Positive Sentiment: The company is planning a broader beverage lineup to compete for customers’ drink purchases, potentially creating a new source of sales growth. McDonald’s new drinks take aim at your Starbucks order
• Positive Sentiment: A Pokémon Happy Meal promotion featuring toys and trading cards may boost customer interest and near-term visits, although the articles provide no estimate of its financial impact. McDonald’s x Pokémon collab is now live
• Negative Sentiment: Recent coverage highlights continuing U.S. challenges: guest counts are declining and quarterly revenue missed expectations, despite an earnings-per-share beat. A value bundle being tested at 1,900 restaurants could help, but its results remain uncertain. MCD Stock Outlook: Wall Street Eyes a Potential Upside Breakout After Q3 Results
• Negative Sentiment: One analysis says MCD’s roughly 24% rebound over the past month may have limited further upside, citing free-cash-flow figures. Higher Treasury yields may also weigh on stock valuations more broadly. McDonald’s Stock Is Up 24% in the Last Month – Is MCD Near a Peak?

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.