Welch Group LLC Boosts Stake in McDonald’s Corporation $MCD

Welch Group LLC increased its stake in shares of McDonald’s Corporation (NYSE:MCD) by 1.8% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 209,774 shares of the fast-food giant’s stock after buying an additional 3,770 shares during the quarter. McDonald’s comprises approximately 2.5% of Welch Group LLC’s investment portfolio, making the stock its 17th biggest holding. Welch Group LLC’s holdings in McDonald’s were worth $63,748,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. True North Advisors LLC grew its stake in McDonald’s by 18.0% during the 3rd quarter. True North Advisors LLC now owns 2,703 shares of the fast-food giant’s stock valued at $822,000 after purchasing an additional 413 shares during the last quarter. OLD National Bancorp IN raised its stake in shares of McDonald’s by 3.1% in the third quarter. OLD National Bancorp IN now owns 36,942 shares of the fast-food giant’s stock worth $11,226,000 after purchasing an additional 1,108 shares during the last quarter. Farther Finance Advisors LLC lifted its holdings in shares of McDonald’s by 7.4% during the third quarter. Farther Finance Advisors LLC now owns 23,996 shares of the fast-food giant’s stock worth $7,292,000 after purchasing an additional 1,643 shares during the period. Cranbrook Wealth Management LLC boosted its position in McDonald’s by 34.8% in the third quarter. Cranbrook Wealth Management LLC now owns 1,548 shares of the fast-food giant’s stock valued at $470,000 after buying an additional 400 shares during the last quarter. Finally, Precedent Wealth Partners LLC increased its holdings in McDonald’s by 5.8% in the 3rd quarter. Precedent Wealth Partners LLC now owns 7,559 shares of the fast-food giant’s stock worth $2,297,000 after buying an additional 416 shares during the period. 70.29% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, insider Joseph M. Erlinger sold 3,195 shares of the company’s stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of $305.82, for a total transaction of $977,094.90. Following the completion of the transaction, the insider directly owned 6,088 shares of the company’s stock, valued at $1,861,832.16. This represents a 34.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,486 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $320.00, for a total value of $795,520.00. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at $2,005,760. This trade represents a 28.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 42,516 shares of company stock valued at $13,036,090 over the last ninety days. 0.25% of the stock is owned by corporate insiders.

McDonald’s Stock Performance

MCD opened at $316.38 on Tuesday. The company has a fifty day moving average of $307.51 and a two-hundred day moving average of $303.87. The stock has a market capitalization of $225.31 billion, a price-to-earnings ratio of 26.99, a PEG ratio of 3.51 and a beta of 0.52. McDonald’s Corporation has a fifty-two week low of $276.53 and a fifty-two week high of $326.32.

McDonald’s (NYSE:MCD) last posted its earnings results on Wednesday, November 5th. The fast-food giant reported $3.22 EPS for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.11). McDonald’s had a net margin of 32.04% and a negative return on equity of 280.89%. The business had revenue of $7.08 billion for the quarter, compared to analyst estimates of $7.10 billion. During the same quarter last year, the business earned $3.23 earnings per share. McDonald’s’s revenue was up 3.0% on a year-over-year basis. On average, equities research analysts forecast that McDonald’s Corporation will post 12.25 earnings per share for the current year.

McDonald’s Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were issued a $1.86 dividend. The ex-dividend date of this dividend was Monday, December 1st. This is an increase from McDonald’s’s previous quarterly dividend of $1.77. This represents a $7.44 annualized dividend and a yield of 2.4%. McDonald’s’s dividend payout ratio is 63.48%.

Analyst Ratings Changes

MCD has been the subject of several research reports. Royal Bank Of Canada began coverage on shares of McDonald’s in a research note on Wednesday, October 8th. They set a “sector perform” rating and a $320.00 price objective for the company. BTIG Research restated a “neutral” rating on shares of McDonald’s in a research report on Friday, October 24th. Citigroup lowered their price target on shares of McDonald’s from $381.00 to $375.00 and set a “buy” rating on the stock in a report on Tuesday, October 21st. Wells Fargo & Company lifted their price objective on McDonald’s from $340.00 to $345.00 and gave the company an “overweight” rating in a research note on Thursday, November 6th. Finally, Truist Financial decreased their price objective on McDonald’s from $360.00 to $350.00 and set a “buy” rating for the company in a report on Tuesday, October 14th. Eleven analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $324.57.

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.