Welch & Forbes LLC Decreases Holdings in McDonald’s Corporation $MCD

Welch & Forbes LLC decreased its holdings in McDonald’s Corporation (NYSE:MCD) by 0.8% in the first quarter, Holdings Channel reports. The fund owned 303,989 shares of the fast-food giant’s stock after selling 2,417 shares during the quarter. McDonald’s makes up 1.2% of Welch & Forbes LLC’s holdings, making the stock its 24th biggest holding. Welch & Forbes LLC’s holdings in McDonald’s were worth $94,477,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Your Advocates Ltd. LLP purchased a new position in shares of McDonald’s in the 4th quarter worth approximately $27,000. Park Place Capital Corp raised its holdings in McDonald’s by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after buying an additional 45 shares during the period. IFC & Insurance Marketing Inc. bought a new stake in McDonald’s in the fourth quarter worth $29,000. Abound Financial LLC bought a new stake in McDonald’s in the fourth quarter worth $30,000. Finally, DecisionPoint Financial LLC boosted its stake in McDonald’s by 1,616.7% during the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock worth $31,000 after buying an additional 97 shares during the period. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s Stock Down 0.6%

MCD stock traded down $1.56 during trading on Friday, hitting $274.93. The company had a trading volume of 2,978,722 shares, compared to its average volume of 4,490,551. McDonald’s Corporation has a 52-week low of $264.53 and a 52-week high of $341.75. The company has a 50 day simple moving average of $278.57 and a 200-day simple moving average of $301.85. The firm has a market capitalization of $195.34 billion, a P/E ratio of 22.67, a PEG ratio of 2.74 and a beta of 0.41.

McDonald’s (NYSE:MCD) last released its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.74 by $0.09. The company had revenue of $6.52 billion during the quarter, compared to analysts’ expectations of $6.47 billion. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The firm’s quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the company earned $2.67 EPS. Sell-side analysts forecast that McDonald’s Corporation will post 12.91 earnings per share for the current year.

McDonald’s Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were issued a $1.86 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. McDonald’s’s payout ratio is presently 61.34%.

McDonald’s News Summary

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

• Positive Sentiment: McDonald’s is leaning into beverages with a new custom drink push, including a Dirty Dr. Pepper-style offering, which could help drive traffic and lift average ticket sizes as chains compete for drink sales. McDonald’s Dirty Dr. Pepper Leads Its New Custom Drink Push
• Positive Sentiment: McDonald’s is also using promotions and limited-time offers, including free fries for National French Fry Day and a BT21 Happy Meal rollout, to support customer engagement and near-term sales momentum. Free fries article BT21 Happy Meals article
• Positive Sentiment: Some recent commentary suggests McDonald’s remains a defensible consumer name, with analysts and market writers highlighting its cash generation, brand strength, and potential to benefit from event-driven marketing around the FIFA World Cup. FIFA World Cup growth strategy article
• Neutral Sentiment: Several lifestyle pieces about ordering hacks, retro campaigns, and menu combinations are generating buzz, but these appear more like brand-interest stories than material stock drivers. Filet-O-Fish and Snack Wrap article Ordering hack article Vinyl record campaign article
• Neutral Sentiment: McDonald’s has also been the subject of mixed third-party coverage comparing it with other consumer names and discussing macro risks, but these articles do not signal a clear company-specific catalyst on their own. McDonald’s or Pfizer article Index exit and oil shock article
• Negative Sentiment: A Deutsche Bank note says McDonald’s U.S. comparable sales likely hit a new low in the second quarter, reinforcing worries that traffic and same-store sales may be weakening. US sales likely hit new low article
• Negative Sentiment: Recent market pieces also note that McDonald’s has been registering bigger daily declines than the broader market, suggesting investors remain cautious heading into upcoming sales and earnings-related updates. Registers a bigger fall than the market article

Insider Buying and Selling at McDonald’s

In other news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction 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 transaction, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,681 shares of company stock valued at $2,456,440 over the last quarter. Company insiders own 0.26% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Deutsche Bank Aktiengesellschaft set a $325.00 target price on shares of McDonald’s in a report on Thursday. TD Cowen reissued a “hold” rating on shares of McDonald’s in a research report on Friday, June 12th. Morgan Stanley set a $331.00 target price on McDonald’s in a research report on Friday, May 8th. Weiss Ratings cut McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. Finally, Wells Fargo & Company reduced their price target on McDonald’s from $355.00 to $320.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Fifteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, McDonald’s currently has an average rating of “Hold” and a consensus price target of $334.96.

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.