Souders Financial Advisors has decreased its holdings in McDonald’s Corporation (NYSE: MCD) by 9.7%, selling 693 shares during the second quarter of 2023. Following this transaction, the firm now owns 6,416 shares of the fast-food giant, valued at approximately $1.875 million at the end of the reporting period. This reduction in stake reflects broader trends among institutional investors in the fast-food sector.
Several other institutional investors have also adjusted their positions in McDonald’s recently. Brighton Jones LLC increased its stake by 21.6% in the fourth quarter, now holding 9,286 shares valued at $2.692 million after acquiring an additional 1,649 shares. Revolve Wealth Partners LLC enhanced its position by 2.8%, bringing its total to 1,942 shares, valued at $563,000. Quotient Wealth Partners LLC raised its stake by 10.9%, now owning 2,616 shares worth $817,000.
In the first quarter, SSA Swiss Advisors AG purchased a new stake in McDonald’s valued at about $175,000, while Penserra Capital Management LLC significantly increased its holdings by 48.6%, now owning 2,781 shares valued at $867,000. Overall, 70.29% of McDonald’s stock is held by institutional investors.
Analysts Weigh In on McDonald’s Stock
Several financial research firms have recently released reports regarding McDonald’s stock performance. On October 17, 2023, Morgan Stanley set a target price of $335.00. Piper Sandler maintained a “neutral” rating with a target of $325.00, while Weiss Ratings reiterated a “buy (B-)” rating. Wells Fargo & Company lowered its target price from $350.00 to $340.00 but still rated the stock as “overweight.” KeyCorp also reaffirmed an “overweight” rating with a target price of $335.00.
Currently, analysts have assigned a consensus rating of “Hold” to McDonald’s, with an average target price of $323.43. Among the analysts, eleven have rated the stock as a buy, fifteen as a hold, and two as a sell.
Insider Trading Activity
In related news, Chief Marketing Officer Edith Morgan Flatley sold 1,000 shares of McDonald’s stock on September 2, 2023, at an average price of $315.00, totaling $315,000. Following this transaction, Flatley retains 6,858 shares valued at approximately $2.160 million, marking a 12.73% decrease in her holdings.
Executive Vice President Jonathan Banner also sold 1,000 shares on August 19, 2023, at an average price of $310.00, for a total of $310,000. Banner’s remaining 99 shares are valued at around $30,690, reflecting a substantial 90.99% reduction in his position. According to filings with the Securities & Exchange Commission, insiders hold approximately 0.25% of McDonald’s stock.
Current Stock Performance and Future Projections
As of October 16, 2023, McDonald’s stock opened at $305.01. The company has a market capitalization of $217.66 billion, with a price-to-earnings ratio of 26.14 and a price-to-earnings-growth ratio of 3.23. The stock has fluctuated between a fifty-two week low of $276.53 and a high of $326.32.
McDonald’s recently announced its quarterly earnings, reporting $3.22 earnings per share, which fell short of the consensus estimate of $3.33 by $0.11. The company generated revenue of $7.08 billion for the quarter, slightly below analysts’ expectations of $7.10 billion, though it reflected a 3.0% increase compared to the same quarter last year.
In an encouraging move for investors, McDonald’s declared a quarterly dividend of $1.86, payable on December 15, 2023, to shareholders of record on December 1, 2023. This marks an increase from the previous quarterly dividend of $1.77 and translates to an annualized dividend of $7.44, providing a yield of 2.4%. The dividend payout ratio stands at 63.75%.
McDonald’s Corporation, a leading player in the fast-food industry, operates and franchises restaurants across various segments, including the U.S., International Operated Markets, and International Developmental Licensed Markets.
