HS Management Partners LLC Reduces Stake in McDonald’s Corporation $MCD

HS Management Partners LLC lessened its holdings in shares of McDonald’s Corporation (NYSE:MCD) by 56.4% during the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 35,662 shares of the fast-food giant’s stock after selling 46,087 shares during the period. McDonald’s accounts for approximately 3.9% of HS Management Partners LLC’s investment portfolio, making the stock its 12th biggest holding. HS Management Partners LLC’s holdings in McDonald’s were worth $11,083,000 as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in the business. Norges Bank purchased a new position in McDonald’s in the fourth quarter valued at approximately $2,890,438,000. Diamant Asset Management Inc. raised its holdings in McDonald’s by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock worth $806,917,000 after purchasing an additional 2,587,986 shares in the last quarter. J. Stern & Co. LLP lifted its position in shares of McDonald’s by 9,867.5% during the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock worth $776,608,000 after buying an additional 2,515,515 shares during the last quarter. Viking Global Investors LP lifted its position in shares of McDonald’s by 171.7% during the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock worth $913,157,000 after buying an additional 1,974,998 shares during the last quarter. Finally, Franklin Resources Inc. boosted its holdings in shares of McDonald’s by 36.6% in the 3rd quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant’s stock valued at $1,336,155,000 after buying an additional 1,179,244 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s stock was lifted by a UBS note highlighting it as an attractive defensive dividend name, helping support the shares as investors rotate toward stable cash-generating companies. Why McDonald’s (MCD) Stock Is Up Today
• Positive Sentiment: McDonald’s continues to appeal to income investors after its latest quarterly dividend, reinforcing its reputation as one of the most reliable dividend payers in the Dow. Despite Franchisees Struggling, McDonald’s Dividend Keeps Rising
• Positive Sentiment: New menu and promotional chatter, including Happy Meal tie-ins, free fries offers, and added chicken items, could help drive customer engagement and traffic. BT21 Toys Teases Coming To McDonald’s Happy Meals On July 14
• Neutral Sentiment: McDonald’s is also getting broader media attention around its brand history and restaurant expansion plans, but these items are not likely to move the stock much on their own. The McDonald’s Big Mac jingle from the mid ’70s that still lives in our heads
• Neutral Sentiment: McDonald’s hired a new development executive to support its NEXT strategy, which signals execution progress but is still more of a long-term operating update than an immediate stock catalyst. McDonald’s taps Raising Cane’s vet to lead development
• Negative Sentiment: A Trefis report said McDonald’s is facing a real risk from trying to win over budget-conscious customers, with franchisee strain from inflation and weak consumer sentiment weighing on the system. The Real Risk Squeezing McDonald’s Stock
• Negative Sentiment: Another recent analysis said MCD is near 52-week lows because of margin pressure at franchisees and softer foot traffic, which continues to limit enthusiasm despite the dividend appeal. Should You Buy McDonald’s (MCD) At 52-Week Lows

Insider Activity at McDonald’s

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was 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 of the company’s stock, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 11,307 shares of company stock valued at $3,262,622. 0.26% of the stock is owned by company insiders.

McDonald’s Stock Performance

NYSE MCD opened at $280.48 on Friday. The firm’s fifty day moving average is $280.25 and its two-hundred day moving average is $303.22. McDonald’s Corporation has a one year low of $264.53 and a one year high of $341.75. The firm has a market cap of $199.29 billion, a PE ratio of 23.12, a P/E/G ratio of 2.80 and a beta of 0.41.

McDonald’s (NYSE:MCD) last announced its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping 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 the consensus estimate of $6.47 billion. During the same quarter in the prior year, the firm earned $2.67 earnings per share. The business’s quarterly revenue was up 9.4% compared to the same quarter last year. Research analysts predict that McDonald’s Corporation will post 12.93 earnings per share for the current year.

McDonald’s Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were paid a dividend of $1.86 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald’s’s dividend payout ratio is currently 61.34%.

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. Robert W. Baird set a $305.00 target price on shares of McDonald’s in a research report on Thursday, May 7th. Royal Bank Of Canada reissued a “sector perform” rating on shares of McDonald’s in a research report on Tuesday, June 23rd. Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and boosted their price target for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Morgan Stanley set a $331.00 price objective on shares of McDonald’s in a research note on Friday, May 8th. Finally, Wells Fargo & Company dropped their price objective on McDonald’s from $355.00 to $320.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, McDonald’s presently has an average rating of “Moderate Buy” and a consensus target price of $335.70.

McDonald’s Company 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.