TT Capital Management LLC Buys New Holdings in McDonald’s Corporation $MCD

TT Capital Management LLC purchased a new stake in McDonald’s Corporation (NYSE:MCD) in the third quarter, according to its most recent filing with the SEC. The fund purchased 5,179 shares of the fast-food giant’s stock, valued at approximately $1,196,000.

Several other large investors have also recently added to or reduced their stakes in MCD. State Street Corp grew its position in shares of McDonald’s by 1.8% during the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant’s stock valued at $9,752,921,000 after buying an additional 646,675 shares during the last quarter. Bank of New York Mellon Corp bought a new position in McDonald’s in the second quarter worth about $1,359,276,000. Arrowstreet Capital Limited Partnership lifted its holdings in McDonald’s by 17.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant’s stock worth $1,130,587,000 after acquiring an additional 533,448 shares during the last quarter. Diamant Asset Management Inc. boosted its stake in McDonald’s by 30,979.0% in the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock valued at $806,917,000 after acquiring an additional 2,587,986 shares during the period. Finally, J. Stern & Co. LLP boosted its stake in McDonald’s by 9,867.5% in the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after acquiring an additional 2,515,515 shares during the period. 70.29% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently commented on MCD shares. KeyCorp lowered their target price on McDonald’s from $305.00 to $280.00 and set an “overweight” rating for the company in a report on Tuesday, October 6th. Tigress Financial raised their price target on McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a report on Friday, July 17th. Needham & Company LLC restated a “buy” rating on shares of McDonald’s in a research report on Monday, September 21st. Mizuho reduced their price objective on McDonald’s from $300.00 to $290.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. Finally, Weiss Ratings downgraded McDonald’s from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $295.94.

More McDonald’s News

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 Trading Up 1.8%

NYSE:MCD traded up $4.38 during mid-day trading on Thursday, hitting $242.69. The stock had a trading volume of 3,925,550 shares, compared to its average volume of 4,237,482. The stock has a market capitalization of $171.74 billion, a price-to-earnings ratio of 19.72, a P/E/G ratio of 2.64 and a beta of 0.44. The company has a 50 day simple moving average of $253.35 and a 200-day simple moving average of $272.74. McDonald’s Corporation has a 52 week low of $229.20 and a 52 week high of $341.75.

McDonald’s (NYSE:MCD) last posted its earnings results 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 net margin of 31.72% and a negative return on equity of 572.06%. The firm had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same period in the previous year, the business posted $3.19 EPS. McDonald’s’s revenue was up 3.7% on a year-over-year basis. As a group, equities research analysts anticipate that McDonald’s Corporation will post 12.84 earnings per share for the current year.

McDonald’s Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a dividend of $1.93 per share. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.2%. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date of this dividend is Tuesday, December 1st. McDonald’s’s dividend payout ratio is presently 62.71%.

McDonald’s Profile

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.