Saudi Central Bank Raises Holdings in McDonald’s Corporation $MCD

Saudi Central Bank increased its position in McDonald’s Corporation (NYSE:MCD) by 19.3% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 144,728 shares of the fast-food giant’s stock after buying an additional 23,442 shares during the period. Saudi Central Bank’s holdings in McDonald’s were worth $38,874,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in MCD. Hamilton Point Investment Advisors LLC increased its stake 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 acquiring an additional 31 shares during the last quarter. Richmond Investment Services LLC boosted its position in shares of McDonald’s by 1.4% during the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock valued at $696,000 after acquiring an additional 32 shares during the last quarter. Papamarkou Wellner Asset Management inc. boosted its position in shares of McDonald’s by 0.4% during 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 acquiring an additional 32 shares during the last quarter. Allied Investment Advisors LLC grew its holdings in shares of McDonald’s by 2.6% in the fourth quarter. Allied Investment Advisors LLC now owns 1,366 shares of the fast-food giant’s stock valued at $417,000 after purchasing an additional 34 shares in the last quarter. Finally, Parvin Asset Management LLC grew its holdings in shares of McDonald’s by 3.8% in the third quarter. Parvin Asset Management LLC now owns 929 shares of the fast-food giant’s stock valued at $282,000 after purchasing an additional 34 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald’s Trading Down 1.5%

Shares of NYSE:MCD opened at $255.69 on Friday. The company has a market capitalization of $180.94 billion, a price-to-earnings ratio of 20.77, a PEG ratio of 2.76 and a beta of 0.41. McDonald’s Corporation has a 12 month low of $255.49 and a 12 month high of $341.75. The firm’s 50-day moving average is $269.67 and its 200 day moving average is $289.39.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The firm’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same period in the prior year, the company posted $3.19 EPS. As a group, equities analysts forecast that McDonald’s Corporation will post 12.87 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be issued a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio is presently 60.44%.

McDonald’s News Roundup

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

• Positive Sentiment: Valuation may attract contrarian buyers: McDonald’s is trading at roughly 19.15 times earnings, below the restaurant industry’s average multiple. Analysts point to global expansion, digital initiatives and new product efforts as possible catalysts for a recovery. McDonald’s Trades at 19.15X P/E: Is This a Discounted Opportunity?
• Positive Sentiment: Promotional activity could support traffic: McDonald’s is bringing back popular menu items, launching a Texas-themed meal with collectible cups and promoting limited-time products. These campaigns may encourage visits and improve near-term sales, though their financial impact is unproven. McDonald’s launches exclusive state-themed meal
• Neutral Sentiment: Brand visibility remains high: Coverage of McDonald’s breakfast offerings, Grimace appearances, collectible merchandise and Warren Buffett’s long-standing affinity for the brand reinforces consumer awareness but is unlikely to materially change earnings expectations. The best McDonald’s breakfast sandwich isn’t on the menu
• Negative Sentiment: U.S. consumer weakness is the main concern: Reports describe consumer-focused stocks, including McDonald’s, as signaling softer spending in middle America. Articles also highlight customers shifting to competing fast-food chains, increasing pressure on traffic and comparable sales. Wall Street worried about consumer stocks
• Negative Sentiment: Value positioning remains problematic: Coverage says McDonald’s $3 value offering has not fully delivered for customers or the company, raising concerns about affordability, franchisee economics and the effectiveness of discounting. Why you can’t find McDonald’s $3 value menu

Insider Buying and Selling at McDonald’s

In related news, insider Joseph Erlinger sold 5,252 shares of the firm’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.26% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on MCD. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $295.00 price target on shares of McDonald’s in a research note on Wednesday, August 5th. KeyCorp dropped their price objective on shares of McDonald’s from $315.00 to $305.00 and set an “overweight” rating for the company in a research note on Wednesday, August 5th. Weiss Ratings downgraded shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. Argus decreased their target price on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating on the stock in a research report on Wednesday, August 26th. Finally, Guggenheim lowered their price target on shares of McDonald’s from $320.00 to $290.00 and set a “neutral” rating for the company in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $321.35.

McDonald’s 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.