Key Points
- Insider sale: EVP Desiree Ralls‑Morrison sold 2,486 McDonald’s shares on Dec. 16 at an average $320 for $795,520, cutting her holding by 28.4% to 6,268 shares (≈$2.01M); the trade was disclosed on an SEC Form 4.
- Business and market context: McDonald’s missed quarterly EPS ($3.22 vs. $3.33) with revenue up 3% YoY to $7.08B, raised its quarterly dividend to $1.86 (2.3% yield), and carries a consensus “Hold” rating with an average target of $324.57 near the current share price.
McDonald's Corporation (NYSE:MCD - Get Free Report) EVP Desiree Ralls-Morrison sold 2,486 shares of McDonald's stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $320.00, for a total value of $795,520.00. Following the completion of the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $2,005,760. This represents a 28.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link.
McDonald's Stock Performance
Shares of NYSE MCD opened at $319.72 on Friday. The stock has a 50 day moving average price of $306.81 and a 200 day moving average price of $303.91. The stock has a market capitalization of $227.69 billion, a PE ratio of 27.28, a price-to-earnings-growth ratio of 3.54 and a beta of 0.52. McDonald's Corporation has a 52 week low of $276.53 and a 52 week high of $326.32.
McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Wednesday, November 5th. The fast-food giant reported $3.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.33 by ($0.11). McDonald's had a negative return on equity of 280.89% and a net margin of 32.04%.The company had revenue of $7.08 billion for the quarter, compared to the consensus estimate of $7.10 billion. During the same quarter in the prior year, the company earned $3.23 EPS. The company's revenue for the quarter was up 3.0% on a year-over-year basis. As a group, research analysts forecast that McDonald's Corporation will post 12.25 EPS for the current year.
McDonald's Increases Dividend
The company also recently disclosed a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were given a $1.86 dividend. This is a boost from McDonald's's previous quarterly dividend of $1.77. The ex-dividend date of this dividend was Monday, December 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.3%. McDonald's's payout ratio is 63.48%.
Analysts Set New Price Targets
A number of equities research analysts have recently issued reports on MCD shares. BMO Capital Markets reaffirmed an "outperform" rating on shares of McDonald's in a report on Thursday, November 6th. Stifel Nicolaus boosted their price target on McDonald's from $300.00 to $315.00 and gave the stock a "hold" rating in a research report on Friday, August 22nd. Guggenheim upped their price objective on McDonald's from $295.00 to $310.00 and gave the company a "neutral" rating in a research note on Wednesday, November 19th. Weiss Ratings reiterated a "buy (b-)" rating on shares of McDonald's in a research note on Friday, October 31st. Finally, Morgan Stanley set a $335.00 target price on McDonald's in a report on Friday, October 17th. Eleven analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, McDonald's has a consensus rating of "Hold" and an average target price of $324.57.
Check Out Our Latest Report on MCD
Hedge Funds Weigh In On McDonald's
Institutional investors and hedge funds have recently made changes to their positions in the company. AIA Group Ltd increased its stake in shares of McDonald's by 61.6% during the third quarter. AIA Group Ltd now owns 28,583 shares of the fast-food giant's stock worth $8,686,000 after purchasing an additional 10,895 shares during the period. Lindenwold Advisors INC grew its holdings in McDonald's by 1.0% in the 3rd quarter. Lindenwold Advisors INC now owns 7,805 shares of the fast-food giant's stock valued at $2,372,000 after buying an additional 76 shares in the last quarter. Farmers National Bank increased its position in McDonald's by 13.2% during the 3rd quarter. Farmers National Bank now owns 28,854 shares of the fast-food giant's stock worth $8,768,000 after buying an additional 3,357 shares during the period. Hudson Bay Capital Management LP increased its position in McDonald's by 248.1% during the 3rd quarter. Hudson Bay Capital Management LP now owns 72,724 shares of the fast-food giant's stock worth $22,100,000 after buying an additional 51,834 shares during the period. Finally, Painted Porch Advisors LLC lifted its holdings in shares of McDonald's by 735.7% during the third quarter. Painted Porch Advisors LLC now owns 117 shares of the fast-food giant's stock worth $36,000 after buying an additional 103 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.
McDonald's Company Profile
(
Get Free Report)
McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.
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