Levin Capital Strategies L.P. Raises Holdings in McDonald’s Corporation $MCD

Levin Capital Strategies L.P. increased its stake in shares of McDonald’s Corporation (NYSE:MCD) by 997.0% during the 2nd quarter, Holdings Channel reports. The fund owned 13,537 shares of the fast-food giant’s stock after purchasing an additional 12,303 shares during the quarter. Levin Capital Strategies L.P.’s holdings in McDonald’s were worth $3,659,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors also recently bought and sold shares of the stock. Hamilton Point Investment Advisors LLC boosted its position in McDonald’s by 1.8% in the 4th quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant’s stock worth $535,000 after purchasing an additional 31 shares in the last quarter. Encompass More Asset Management increased its holdings in shares of McDonald’s by 1.5% during the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock valued at $648,000 after purchasing an additional 32 shares in the last quarter. Richmond Investment Services LLC lifted its stake in shares of McDonald’s by 1.4% in the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock valued at $696,000 after purchasing an additional 32 shares during the period. Papamarkou Wellner Asset Management inc. lifted its stake in shares of McDonald’s by 0.4% in the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant’s stock valued at $2,692,000 after purchasing an additional 32 shares during the period. Finally, Physician Wealth Advisors Inc. boosted its holdings in McDonald’s by 1.6% during the fourth quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant’s stock worth $642,000 after buying an additional 33 shares in the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald’s Trading Up 0.6%

Shares of McDonald’s stock opened at $267.15 on Wednesday. McDonald’s Corporation has a twelve month low of $260.96 and a twelve month high of $341.75. The firm has a market capitalization of $189.04 billion, a PE ratio of 21.70, a P/E/G ratio of 3.05 and a beta of 0.41. The firm’s 50-day moving average price is $273.27 and its 200 day moving average price is $294.49.

McDonald’s (NYSE:MCD) last announced its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The business’s revenue was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.19 earnings per share. On average, sell-side analysts predict that McDonald’s Corporation will post 12.88 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be issued a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. McDonald’s’s dividend payout ratio (DPR) is presently 60.44%.

McDonald’s News Summary

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

• Positive Sentiment: McDonald’s valuation has become more attractive after its decline, with one bullish estimate implying substantial upside toward the Wall Street consensus target. However, analysts say investors may need to wait for clearer evidence of improved execution. Is McDonald’s a Buy Today as Lower Valuation Meets Execution Risk?
• Positive Sentiment: A workforce scheduling and transportation app reportedly helped one McDonald’s franchise avoid missed shifts and save about $35,000 per month. Wider adoption could improve staffing reliability and restaurant-level margins. Missed shifts were costly to this McDonald’s. An app has fixed the problem
• Positive Sentiment: Limited-time promotions, including Hello Kitty–Godzilla Happy Meals, new fall beverages and an afternoon-focused menu strategy aimed at Starbucks could support traffic and increase customer occasions. McDonald’s Takes Direct Aim at Starbucks
• Neutral Sentiment: McDonald’s latest quarterly earnings beat expectations on EPS, helped by franchised operations, but revenue slightly missed estimates. Investors remain focused on whether cost controls and franchise strength can offset softer U.S. demand. McDonald’s Q2 Earnings Beat Puts U.S. Traffic and Margins in Focus
• Negative Sentiment: Numerator data showed sales among low-income customers fell 2.4% in the latest quarter, indicating that prior price increases may be pushing budget-conscious diners toward alternatives. McDonald’s is losing ground to rivals like Burger King with a key customer group
• Negative Sentiment: Weak U.S. traffic, value-offer execution problems, rising beef and operating costs, and competition from Burger King are creating pressure on sales and margins. The broader economic concern flagged by restaurant and consumer-goods executives adds to the risk. Burger King is taking a bite out of McDonald’s lunch

Insider Buying and Selling at McDonald’s

In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction 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 sale, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 8,348 shares of company stock worth $2,355,634. 0.26% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several analysts recently commented on MCD shares. Evercore set a $320.00 price target on shares of McDonald’s in a research report on Thursday, July 23rd. UBS Group set a $305.00 target price on shares of McDonald’s in a research note on Wednesday, August 5th. BTIG Research restated a “buy” rating and issued a $350.00 price target on shares of McDonald’s in a research note on Wednesday, August 5th. Rothschild & Co Redburn upgraded McDonald’s from a “sell” rating to a “neutral” rating and increased their price target for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Finally, TD Cowen reissued a “hold” rating on shares of McDonald’s in a report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, McDonald’s currently has an average rating of “Moderate Buy” and a consensus target price of $325.44.

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.