Principal Financial Group Inc. Raises Stake in McDonald’s Corporation $MCD

Principal Financial Group Inc. raised its position in McDonald’s Corporation (NYSE:MCD) by 0.6% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 824,968 shares of the fast-food giant’s stock after acquiring an additional 4,692 shares during the quarter. Principal Financial Group Inc.’s holdings in McDonald’s were worth $256,392,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in MCD. Your Advocates Ltd. LLP purchased a new stake in shares of McDonald’s during the 4th quarter worth $27,000. Park Place Capital Corp grew its stake in shares of McDonald’s by 95.7% during the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock worth $28,000 after purchasing an additional 45 shares in the last quarter. IFC & Insurance Marketing Inc. purchased a new position in McDonald’s in the fourth quarter valued at $29,000. Abound Financial LLC purchased a new position in McDonald’s in the fourth quarter valued at $30,000. Finally, Purpose Unlimited Inc. acquired a new stake in McDonald’s in the fourth quarter valued at $31,000. Institutional investors and hedge funds own 70.29% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on MCD shares. JPMorgan Chase & Co. decreased their price target on McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a report on Monday, May 11th. KeyCorp cut their target price on McDonald’s from $330.00 to $315.00 and set an “overweight” rating on the stock in a research report on Monday, June 29th. Deutsche Bank Aktiengesellschaft set a $325.00 target price on McDonald’s in a research note on Thursday, July 9th. Evercore set a $350.00 price target on McDonald’s in a report on Friday, May 8th. Finally, Erste Group Bank lowered shares of McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Fifteen equities research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the stock. According to data from MarketBeat.com, McDonald’s currently has a consensus rating of “Moderate Buy” and an average price target of $338.23.

Insiders Place Their Bets

In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction 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 transaction, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction dated Thursday, May 28th. The shares were 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 $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 8,681 shares of company stock valued at $2,456,440. 0.26% of the stock is owned by company insiders.

Key McDonald’s News

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

• Neutral Sentiment: Recent market coverage says McDonald’s has been lagging the broader restaurant group and now trades at a discount to peers, with investors weighing whether valuation support, beverage initiatives, and international expansion can offset traffic and margin concerns. McDonald’s Stock Lags Industry, Trades at a Discount: Time to Buy?
• Neutral Sentiment: Another update highlighted that MCD slipped even as the overall market rose, reinforcing that the stock’s weakness appears tied more to investor positioning and relative performance than to a single negative headline. McDonald’s (MCD) Stock Slides as Market Rises: Facts to Know Before You Trade
• Neutral Sentiment: McDonald’s continues to generate attention with multiple menu and marketing launches, including new limited-time items, a sauce-driven McCrispy update, and BT21 Happy Meal toys, which could help traffic but are not yet enough to lift sentiment decisively. ‘Et tu, McDonald’s?’ Company launching first-ever sauce, chicken snack wrap flavor
• Neutral Sentiment: Analysts and news outlets also point to McDonald’s strong earnings history and resilient brand, but those fundamentals are being balanced against concerns about slowing relative performance, which helps explain the stock’s weaker tone today.

McDonald’s Stock Down 1.4%

NYSE:MCD opened at $268.90 on Wednesday. The company has a market capitalization of $191.05 billion, a PE ratio of 22.17, a P/E/G ratio of 2.83 and a beta of 0.41. McDonald’s Corporation has a 52-week low of $264.53 and a 52-week high of $341.75. The stock’s 50 day moving average price is $277.82 and its 200 day moving average price is $301.17.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating the consensus estimate of $2.74 by $0.09. The business had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The company’s revenue was up 9.4% compared to the same quarter last year. During the same period in the prior year, the company earned $2.67 earnings per share. As a group, sell-side analysts anticipate that McDonald’s Corporation will post 12.9 EPS for the current fiscal year.

McDonald’s Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were given a $1.86 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.8%. McDonald’s’s dividend payout ratio is 61.34%.

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.