Investment Management Corp of Ontario Has $22.64 Million Stock Position in McDonald’s Corporation $MCD

by · The Markets Daily

Investment Management Corp of Ontario boosted its position in McDonald’s Corporation (NYSE:MCD – Free Report) by 46.4% in the 4th quarter, HoldingsChannel reports. The firm owned 74,090 shares of the fast-food giant’s stock after acquiring an additional 23,469 shares during the period. Investment Management Corp of Ontario’s holdings in McDonald’s were worth $22,644,000 as of its most recent filing with the SEC.

Other hedge funds have also recently bought and sold shares of the company. Gotham Asset Management LLC raised its position in shares of McDonald’s by 124.0% in the fourth quarter. Gotham Asset Management LLC now owns 48,992 shares of the fast-food giant’s stock valued at $14,973,000 after buying an additional 27,117 shares in the last quarter. Evolve Private Wealth LLC bought a new position in McDonald’s in the fourth quarter valued at approximately $1,339,000. Cinctive Capital Management LP increased its stake in McDonald’s by 414.5% in the fourth quarter. Cinctive Capital Management LP now owns 12,384 shares of the fast-food giant’s stock valued at $3,785,000 after acquiring an additional 9,977 shares during the last quarter. Claro Advisors Inc. grew its stake in shares of McDonald’s by 1.3% during the fourth quarter. Claro Advisors Inc. now owns 11,163 shares of the fast-food giant’s stock worth $3,412,000 after buying an additional 141 shares during the last quarter. Finally, Asset One Wealth Management LLC bought a new stake in shares of McDonald’s during the fourth quarter worth $4,937,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on MCD. Barclays decreased their target price on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Royal Bank Of Canada reduced their price target on McDonald’s from $330.00 to $305.00 and set a “sector perform” rating on the stock in a research report on Friday, May 8th. Tigress Financial increased their price target on McDonald’s from $360.00 to $385.00 and gave the company a “buy” rating in a research note on Friday, March 6th. BTIG Research reissued a “buy” rating and set a $370.00 target price on shares of McDonald’s in a research report on Thursday, May 7th. Finally, Cfra upgraded shares of McDonald’s to a “buy” rating in a report on Friday, May 8th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $336.26.

Get Our Latest Research Report on McDonald’s

McDonald’s Stock Performance

McDonald’s stock opened at $284.16 on Thursday. McDonald’s Corporation has a fifty-two week low of $271.85 and a fifty-two week high of $341.75. The stock has a market cap of $201.90 billion, a PE ratio of 23.43, a price-to-earnings-growth ratio of 2.87 and a beta of 0.41. The firm’s 50-day simple moving average is $288.07 and its 200 day simple moving average is $306.22.

McDonald’s (NYSE:MCD – Get Free Report) last released its quarterly 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 for the quarter, compared to analysts’ expectations of $6.47 billion. During the same period in the previous year, the company earned $2.67 earnings per share. The firm’s revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, analysts predict that McDonald’s Corporation will post 12.93 EPS for the current fiscal year.

McDonald’s Dividend Announcement

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

Insider Activity

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction dated 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 approximately $2,198,930.88. This represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 11,307 shares of company stock worth $3,262,622. Insiders own 0.26% of the company’s stock.

More McDonald’s News

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

  • Positive Sentiment: McDonald’s is bringing back its fried apple pie after more than 30 years, a nostalgic, limited-time menu move that could support traffic and generate buzz with customers. AP News article
  • Positive Sentiment: Other reports also note McDonald’s has been winning with value-oriented diners, which may help it hold up better than midtier restaurant chains as consumers trade down or seek familiar brands. Yahoo Finance article
  • Neutral Sentiment: Coverage of McDonald’s reviving classic menu items, updating drive-thrus, and rebuilding older locations is mostly brand/operations news, with limited immediate impact on the stock. TheStreet article
  • Neutral Sentiment: A Zacks note pointed out that MCD recently fell more than the broader market, but it did not identify a major new catalyst beyond the stock’s recent weakness. Zacks article
  • Negative Sentiment: The biggest headwind is the market’s concern that restaurant spending is fragmenting, which could pressure midtier operators and keep sentiment cautious around consumer discretionary names like McDonald’s. Yahoo Finance article

McDonald’s Company Profile

(Free Report)

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.

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