Focused Investors LLC Has $99.42 Million Stake in McDonald’s Corporation $MCD

Focused Investors LLC reduced its holdings in McDonald’s Corporation (NYSE:MCD) by 9.7% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 367,800 shares of the fast-food giant’s stock after selling 39,500 shares during the quarter. McDonald’s accounts for about 3.4% of Focused Investors LLC’s investment portfolio, making the stock its 13th largest holding. Focused Investors LLC’s holdings in McDonald’s were worth $99,420,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of MCD. North Star Investment Management Corp. raised its position in shares of McDonald’s by 0.6% during the second quarter. North Star Investment Management Corp. now owns 18,874 shares of the fast-food giant’s stock worth $5,102,000 after purchasing an additional 116 shares during the period. Richard C. Young & CO. LTD. grew its position in shares of McDonald’s by 0.7% in the 2nd quarter. Richard C. Young & CO. LTD. now owns 46,025 shares of the fast-food giant’s stock valued at $12,441,000 after purchasing an additional 332 shares during the period. MBA Advisors LLC grew its position in shares of McDonald’s by 2.1% in the 2nd quarter. MBA Advisors LLC now owns 3,716 shares of the fast-food giant’s stock valued at $1,005,000 after purchasing an additional 78 shares during the period. Summit Wealth Group LLC Co. increased its stake in McDonald’s by 11.1% during the 2nd quarter. Summit Wealth Group LLC Co. now owns 2,470 shares of the fast-food giant’s stock worth $668,000 after purchasing an additional 247 shares in the last quarter. Finally, Atria Investments Inc increased its stake in McDonald’s by 4.5% during the 2nd quarter. Atria Investments Inc now owns 64,048 shares of the fast-food giant’s stock worth $17,313,000 after purchasing an additional 2,782 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers
• Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers
• Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys
• Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call
• Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground
• Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered
• Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report

Insider Transactions at McDonald’s

In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of the business’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 transaction, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction that occurred 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 completion of the sale, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,348 shares of company stock valued at $2,355,634 in the last quarter. 0.26% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on MCD. KeyCorp cut their price target on shares of McDonald’s from $315.00 to $305.00 and set an “overweight” rating on the stock in a research note on Wednesday, August 5th. Erste Group Bank downgraded shares of McDonald’s from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. JPMorgan Chase & Co. dropped their price objective on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a report on Monday, May 11th. Royal Bank Of Canada cut their price objective on shares of McDonald’s from $305.00 to $295.00 and set a “sector perform” rating on the stock in a research report on Wednesday, August 5th. Finally, Mizuho cut their price objective on shares of McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, McDonald’s has a consensus rating of “Moderate Buy” and an average target price of $325.44.

McDonald’s Trading Up 0.1%

NYSE MCD opened at $272.61 on Friday. The firm has a market capitalization of $192.91 billion, a P/E ratio of 22.15, a price-to-earnings-growth ratio of 3.05 and a beta of 0.41. The firm’s fifty day moving average price is $273.81 and its two-hundred day moving average price is $295.28. McDonald’s Corporation has a 1 year low of $260.96 and a 1 year high of $341.75.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. The company had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company’s quarterly revenue was up 3.7% on a year-over-year basis. During the same quarter last year, the firm posted $3.19 EPS. On average, research analysts anticipate that McDonald’s Corporation will post 12.88 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. Investors of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald’s’s dividend payout ratio (DPR) is presently 60.44%.

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.