Sumitomo Mitsui Trust Group Inc. Decreases Stock Holdings in McDonald’s Corporation $MCD

Sumitomo Mitsui Trust Group Inc. cut its stake in McDonald’s Corporation (NYSE:MCD) by 4.1% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,901,282 shares of the fast-food giant’s stock after selling 81,500 shares during the period. Sumitomo Mitsui Trust Group Inc. owned approximately 0.27% of McDonald’s worth $590,899,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in MCD. Peterson Wealth Services increased its position in shares of McDonald’s by 3,294.5% in the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock valued at $3,600,000 after buying an additional 11,432 shares in the last quarter. Harbour Investments Inc. boosted its position in shares of McDonald’s by 84.4% in the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant’s stock worth $10,853,000 after buying an additional 16,252 shares in the last quarter. Capital International Sarl grew its stake in McDonald’s by 10.4% in the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant’s stock valued at $19,639,000 after acquiring an additional 6,079 shares during the last quarter. North Dakota State Investment Board acquired a new stake in McDonald’s in the 4th quarter valued at about $7,493,000. Finally, Pittenger & Anderson Inc. grew its stake in McDonald’s by 21.9% in the 4th quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant’s stock valued at $6,567,000 after acquiring an additional 3,866 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on MCD. Cfra upgraded shares of McDonald’s to a “buy” rating in a research report on Friday, May 8th. Wells Fargo & Company lowered their price target on shares of McDonald’s from $355.00 to $320.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. Barclays dropped their price objective on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. KeyCorp cut their price objective on McDonald’s from $330.00 to $315.00 and set an “overweight” rating for the company in a research report on Monday, June 29th. Finally, Weiss Ratings lowered McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. Sixteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $335.70.

Insider Buying and Selling at McDonald’s

In other news, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction 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 completion of the sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the transaction, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 11,307 shares of company stock valued at $3,262,622 over the last three months. Corporate insiders own 0.26% of the company’s stock.

McDonald’s Price Performance

Shares of MCD stock opened at $278.44 on Thursday. The firm has a market cap of $197.83 billion, a P/E ratio of 22.95, a PEG ratio of 2.81 and a beta of 0.41. McDonald’s Corporation has a 1-year low of $264.53 and a 1-year high of $341.75. The firm’s 50-day simple moving average is $279.20 and its 200-day simple moving average is $302.32.

McDonald’s (NYSE:MCD) last released its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 firm had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the previous year, the firm earned $2.67 earnings per share. McDonald’s’s revenue was up 9.4% compared to the same quarter last year. Analysts expect that McDonald’s Corporation will post 12.93 earnings per share for the current fiscal year.

McDonald’s Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were issued a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Tuesday, June 2nd. McDonald’s’s dividend payout ratio (DPR) is 61.34%.

More McDonald’s News

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

• Positive Sentiment: McDonald’s is leaning on promotions and pop-culture tie-ins to drive traffic, including a new BT21 Happy Meal collaboration and related Pokémon-style merchandising buzz that could support near-term sales. McDonald’s Reveals More On BT21 X Happy Meal Collaboration
• Positive Sentiment: Local and regional promotions, such as free fries for National French Fry Day and the return of limited-time menu items, may help create short-term customer traffic and engagement. McDonald’s giving away free medium fries in Corpus Christi and Victoria for National French Fry Day
• Neutral Sentiment: Coverage focused on McDonald’s franchise economics and brand marketing keeps the company in the spotlight, but these stories do not materially change the investment thesis by themselves. McDonald’s Franchise Owners Make A Surprising Amount Of Money
• Neutral Sentiment: Analyst and comparison pieces continue to frame McDonald’s as a defensive, lower-stress consumer stock, which supports the long-term case but does not appear to be a near-term catalyst. Buy these quality, low-stress stocks for the summer, says Jefferies
• Negative Sentiment: Several articles highlighted complaints that McDonald’s food no longer tastes as good as customers remember, plus reports that some loyal customers are choosing other fast-food chains instead, which can pressure traffic expectations. The McDonald’s Foods Customers Say No Longer Taste Like They Remember
• Negative Sentiment: Competitive headlines also showed rivals taking aim at McDonald’s with new menu offerings, underscoring ongoing pressure in the fast-food market. McDonald’s rival takes not-so-subtle swipe at the fast food giant with new chicken sandwiches

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.