McDonald’s (NYSE:MCD) Posts Quarterly Earnings Results, Misses Estimates By $0.11 EPS

McDonald’s (NYSE:MCD) announced its quarterly earnings data on Wednesday. The fast-food giant reported $3.22 EPS for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.11), Zacks reports. McDonald’s had a negative return on equity of 225.52% and a net margin of 32.21%.The business had revenue of $7.08 billion during the quarter, compared to the consensus estimate of $7.10 billion. During the same period in the prior year, the firm earned $3.23 EPS. The business’s revenue for the quarter was up 3.0% compared to the same quarter last year.

McDonald’s Trading Up 0.9%

Shares of MCD traded up $2.68 during trading hours on Friday, reaching $301.09. The stock had a trading volume of 779,538 shares, compared to its average volume of 3,440,569. The firm has a 50-day simple moving average of $304.67 and a 200 day simple moving average of $305.20. McDonald’s has a 12 month low of $276.53 and a 12 month high of $326.32. The company has a market capitalization of $214.86 billion, a price-to-earnings ratio of 25.80, a P/E/G ratio of 3.23 and a beta of 0.50.

McDonald’s Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Investors of record on Monday, December 1st will be given a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Monday, December 1st. This is a positive change from McDonald’s’s previous quarterly dividend of $1.77. McDonald’s’s dividend payout ratio is presently 63.48%.

Insider Buying and Selling at McDonald’s

In other McDonald’s news, EVP Jonathan Banner sold 1,000 shares of the firm’s stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total value of $310,000.00. Following the transaction, the executive vice president directly owned 99 shares of the company’s stock, valued at approximately $30,690. This trade represents a 90.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CMO Edith Morgan Flatley sold 1,000 shares of the business’s stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $315.00, for a total transaction of $315,000.00. Following the sale, the chief marketing officer directly owned 6,858 shares of the company’s stock, valued at approximately $2,160,270. The trade was a 12.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.25% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MCD. Brighton Jones LLC lifted its position in McDonald’s by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock valued at $2,692,000 after purchasing an additional 1,649 shares during the period. Revolve Wealth Partners LLC raised its position in shares of McDonald’s by 2.8% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant’s stock valued at $563,000 after purchasing an additional 52 shares during the period. Sivia Capital Partners LLC boosted its holdings in McDonald’s by 11.4% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant’s stock worth $589,000 after buying an additional 206 shares during the period. Schnieders Capital Management LLC. boosted its stake in shares of McDonald’s by 2.5% in the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant’s stock worth $3,780,000 after acquiring an additional 312 shares during the period. Finally, Gamco Investors INC. ET AL grew its position in shares of McDonald’s by 98.6% during the second quarter. Gamco Investors INC. ET AL now owns 2,967 shares of the fast-food giant’s stock worth $867,000 after purchasing an additional 1,473 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. TD Cowen upped their target price on McDonald’s from $305.00 to $315.00 and gave the stock a “hold” rating in a report on Wednesday, August 6th. Melius started coverage on McDonald’s in a report on Monday, July 14th. They issued a “sell” rating and a $250.00 price objective for the company. Wells Fargo & Company boosted their target price on shares of McDonald’s from $340.00 to $345.00 and gave the stock an “overweight” rating in a report on Thursday. Truist Financial decreased their price objective on shares of McDonald’s from $360.00 to $350.00 and set a “buy” rating for the company in a research report on Tuesday, October 14th. Finally, KeyCorp restated an “overweight” rating and set a $335.00 price objective on shares of McDonald’s in a research note on Monday, October 20th. Eleven research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $323.91.

McDonald’s Company Profile

McDonald’s Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.