Pacer Advisors Inc. Has $34.85 Million Position in McDonald’s Corporation $MCD

Pacer Advisors Inc. lessened its holdings in McDonald’s Corporation (NYSE:MCD) by 6.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 112,147 shares of the fast-food giant’s stock after selling 7,651 shares during the quarter. Pacer Advisors Inc.’s holdings in McDonald’s were worth $34,854,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in MCD. Your Advocates Ltd. LLP acquired a new stake in shares of McDonald’s during the 4th quarter valued at about $27,000. IFC & Insurance Marketing Inc. acquired a new position in McDonald’s in the fourth quarter worth about $29,000. Abound Financial LLC bought a new position in McDonald’s during the fourth quarter worth about $30,000. DecisionPoint Financial LLC lifted its stake in McDonald’s by 1,616.7% during the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock worth $31,000 after purchasing an additional 97 shares during the period. Finally, Entrust Financial LLC acquired a new stake in McDonald’s during the fourth quarter valued at approximately $31,000. Institutional investors and hedge funds own 70.29% of the company’s stock.

Insiders Place Their Bets

In other news, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value 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 trade represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 8,348 shares of company stock valued at $2,355,634. 0.26% of the stock is currently owned by corporate insiders.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s second-quarter results could benefit from its new $3 menu, promotional initiatives and potential traffic tied to the World Cup. Investors will look for evidence that value offerings are increasing visits without materially damaging margins. McDonald’s Q2 Preview: World Cup, New $3 Menu, Higher Gas Prices – Which Theme Wins Out
• Neutral Sentiment: Options traders expect a substantial move following earnings, with some anticipating a potential new two-year low. The report and management’s outlook are likely to drive near-term volatility, particularly around U.S. comparable sales, international performance and franchisee margins. Here’s How Much McDonald’s Stock Is Expected to Move After Earnings
• Negative Sentiment: Budget-conscious consumers remain under financial pressure, raising concern that customers may trade down, reduce restaurant visits or limit discretionary purchases. This makes the performance of McDonald’s value strategy especially important in the earnings release. McDonald’s to Report Q2 Earnings as Budget-Conscious Consumers Remain Under Stress
• Negative Sentiment: Reports about lettuce-related illness and consumer safety concerns could weigh on restaurant traffic and brand sentiment, although the earnings reports will provide the clearest indication of whether such issues affected McDonald’s demand. Did Lettuce Illness Hurt Restaurants? These Reports Will Tell If Diners Feel Safe
• Negative Sentiment: Mizuho lowered its McDonald’s price target to $290, signaling reduced expectations even though the new target remains above recent trading levels. Mizuho Cuts McDonald’s Price Target to $290

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. lowered their price objective on McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research note on Monday, May 11th. KeyCorp restated an “overweight” rating on shares of McDonald’s in a research report on Wednesday, July 15th. Weiss Ratings cut McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. BTIG Research dropped their price objective on McDonald’s from $370.00 to $350.00 and set a “buy” rating for the company in a research note on Friday, July 24th. Finally, Royal Bank Of Canada reissued a “sector perform” rating on shares of McDonald’s in a report on Tuesday, July 28th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $331.92.

McDonald’s Price Performance

Shares of MCD opened at $266.02 on Tuesday. The company has a market capitalization of $189.01 billion, a P/E ratio of 21.93, a PEG ratio of 2.91 and a beta of 0.41. McDonald’s Corporation has a one year low of $260.96 and a one year high of $341.75. The business’s 50 day simple moving average is $274.55 and its 200-day simple moving average is $297.32.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The firm had revenue of $6.52 billion during the quarter, compared to analysts’ expectations of $6.47 billion. During the same period last year, the firm posted $2.67 EPS. The business’s revenue was up 9.4% on a year-over-year basis. On average, sell-side analysts anticipate that McDonald’s Corporation will post 12.86 EPS for the current fiscal year.

McDonald’s Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio is presently 61.34%.

About McDonald’s

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.