Night Squared LP Grows Stake in McDonald’s Corporation $MCD

Night Squared LP grew its position in shares of McDonald’s Corporation (NYSE:MCD) by 28.7% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 12,833 shares of the fast-food giant’s stock after purchasing an additional 2,864 shares during the period. Night Squared LP’s holdings in McDonald’s were worth $3,922,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Your Advocates Ltd. LLP purchased a new position in shares of McDonald’s during the 4th quarter valued at $27,000. Park Place Capital Corp grew its position in shares of 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 purchasing an additional 45 shares in the last quarter. IFC & Insurance Marketing Inc. purchased a new position in shares of McDonald’s during the 4th quarter valued at $29,000. Abound Financial LLC purchased a new position in shares of McDonald’s during the 4th quarter valued at $30,000. Finally, DecisionPoint Financial LLC grew its position in shares of McDonald’s by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock valued at $31,000 after purchasing an additional 97 shares in the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is bringing back its fried apple pie for America’s 250th birthday, a nostalgic limited-time item that could help drive traffic and sales while generating a lot of consumer buzz. AP News – McDonald’s is serving fried apple pie again for America’s 250th birthday
• Positive Sentiment: The company is also being highlighted for bringing back other fan-favorite menu items after decades away, reinforcing the view that McDonald’s is using nostalgia-based offerings to support customer engagement. Article – McDonald’s Is Bringing Back a Highly Requested Menu Item for the First Time in Over 30 Years
• Positive Sentiment: McDonald’s is testing expanded beverage options, including custom sodas, refreshers and Red Bull-based drinks, which could open a new source of incremental sales and improve ticket size. Yahoo Finance – McDonald’s 70-Year Coke Alliance Enters New Beverage Test
• Neutral Sentiment: Several stories focus on McDonald’s brand strength, including celebrity mentions and “coolest locations” lists, which are good for visibility but likely have limited direct impact on earnings. Article – Tina Fey Loves This McDonald’s Menu Item So Much, She Walked Down the Highway in Italy To Order It
• Neutral Sentiment: The company is also making operational changes, including rebuilding a classic Gahanna location with a modern look and altering drive-thru features, but these are more incremental than transformative. AOL – McDonald’s to demolish classic Gahanna location and rebuild it with modern look
• Negative Sentiment: One article about a possible $1 drive-thru fee and another criticizing the chain’s ice cream machine reliability could add to customer frustration and pressure sentiment, even if the financial impact is unclear. Article – Is McDonald’s adding a $1 fee to drive-thru orders? Customers want answers
• Negative Sentiment: Coverage that McCrispy Strips are being revamped after customer criticism suggests McDonald’s is responding to product complaints, which may weigh slightly on sentiment around menu execution. AOL – McDonald’s to Revamp McCrispy Strips After Customer Criticism

McDonald’s Stock Performance

Shares of NYSE:MCD opened at $287.99 on Wednesday. The firm has a fifty day moving average of $288.58 and a 200 day moving average of $306.42. McDonald’s Corporation has a 52-week low of $271.85 and a 52-week high of $341.75. The firm has a market capitalization of $204.62 billion, a PE ratio of 23.74, a price-to-earnings-growth ratio of 2.85 and a beta of 0.41.

McDonald’s (NYSE:MCD) last posted its quarterly earnings results 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. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same period in the prior year, the business posted $2.67 earnings per share. The company’s revenue was up 9.4% on a year-over-year basis. On average, sell-side analysts forecast that McDonald’s Corporation will post 12.93 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a yield of 2.6%. The ex-dividend date was Tuesday, June 2nd. McDonald’s’s dividend payout ratio is presently 61.34%.

Insider Activity

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 11,307 shares of company stock valued at $3,262,622. Company insiders own 0.26% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have recently commented on MCD shares. Weiss Ratings lowered shares of McDonald’s from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, May 29th. Robert W. Baird set a $305.00 price target on shares of McDonald’s in a research report on Thursday, May 7th. Wells Fargo & Company reduced their price target on shares of McDonald’s from $355.00 to $320.00 and set an “overweight” rating for the company in a research report on Friday, May 8th. Royal Bank Of Canada cut their target price on shares of McDonald’s from $330.00 to $305.00 and set a “sector perform” rating for the company in a research report on Friday, May 8th. Finally, Erste Group Bank lowered shares of McDonald’s from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $336.26.

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.