Chapin Davis Inc. increased its holdings in McDonald’s Corporation (NYSE:MCD – Free Report) by 242.2% during the 3rd quarter, Holdings Channel reports. The firm owned 8,251 shares of the fast-food giant’s stock after buying an additional 5,840 shares during the period. Chapin Davis Inc.’s holdings in McDonald’s were worth $1,905,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also bought and sold shares of the company. State Street Corp increased its stake in shares of McDonald’s by 2.7% during the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after buying an additional 959,140 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in McDonald’s by 7.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant’s stock valued at $1,699,314,000 after acquiring an additional 384,762 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in McDonald’s during the 2nd quarter valued at $1,359,276,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of McDonald’s by 17.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant’s stock valued at $1,130,587,000 after purchasing an additional 533,448 shares in the last quarter. Finally, Diamant Asset Management Inc. boosted its stake in shares of McDonald’s by 30,979.0% during the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock valued at $806,917,000 after purchasing an additional 2,587,986 shares in the last quarter. Hedge funds and other institutional investors 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 outperformed during a weaker broader market session, suggesting investors may be viewing the stock as a defensive consumer name. Its high-margin, approximately 98%-franchised model and strong cash generation remain important supports. Why the Market Dipped But McDonald’s Gained Today
- Positive Sentiment: BetterInvesting Magazine identified MCD as an “Undervalued Stock,” while commentary highlighted its profitability, cash flows and compressed valuation after a prolonged decline. The company’s accelerated dividend decision and new U.S. president also signal a continued focus on shareholder returns and improving domestic execution. BetterInvesting Magazine Update
- Neutral Sentiment: McDonald’s is promoting its Monopoly campaign, pickle-focused products and Chicago Marathon pickle-juice activation. These initiatives could boost traffic and brand engagement, but their direct effect on revenue and earnings is uncertain. McDonald’s Monopoly Returns
- Negative Sentiment: McDonald’s faces a proposed federal class-action lawsuit alleging its AI-enhanced pricing tool helps franchisees exchange nonpublic sales data and coordinate prices. McDonald’s denies the allegations, saying the system only recommends prices and does not set menu prices, but the case creates potential antitrust costs, reputational damage and regulatory risk. McDonald’s Sued Over AI Pricing Tool
- Negative Sentiment: Sanford C. Bernstein lowered its price target from $295 to $250 and assigned a “market perform” rating, reflecting concern about McDonald’s growth outlook. Reports also say $5 meals and other promotions have not restored customer visits, while franchisees are resisting costly restaurant upgrades connected to the company’s $8.5 billion modernization plan. McDonald’s Deals Are Not Winning Customers Back
McDonald’s Price Performance
McDonald’s (NYSE:MCD – Get Free Report) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.McDonald’s’s revenue was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $3.19 EPS. On average, sell-side analysts anticipate that McDonald’s Corporation will post 12.85 earnings per share for the current year.
McDonald’s Increases Dividend
The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be given a $1.93 dividend. 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. This represents a $7.72 dividend on an annualized basis and a yield of 3.3%. McDonald’s’s payout ratio is presently 62.71%.
Wall Street Analysts Forecast Growth
MCD has been the subject of several research analyst reports. Bank of America raised their price objective on shares of McDonald’s from $339.00 to $343.00 in a report on Wednesday, August 5th. Jefferies Financial Group lowered their target price on shares of McDonald’s from $260.00 to $250.00 and set an “overweight” rating for the company in a report on Tuesday, September 29th. Loop Capital cut their price target on McDonald’s from $301.00 to $273.00 and set a “hold” rating on the stock in a research note on Wednesday, August 5th. Oppenheimer reduced their price objective on McDonald’s from $325.00 to $295.00 and set an “outperform” rating for the company in a research report on Thursday, September 24th. Finally, Royal Bank Of Canada lowered their price objective on McDonald’s from $290.00 to $285.00 and set a “sector perform” rating for the company in a research note on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, McDonald’s presently has an average rating of “Moderate Buy” and an average price target of $295.94.
Get Our Latest Research Report on MCD
About McDonald’s
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.
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