Retirement Systems of Alabama Sells 1,968 Shares of McDonald’s Corporation $MCD

Retirement Systems of Alabama cut its holdings in McDonald’s Corporation (NYSE:MCD) by 1.3% during the 2nd quarter, Holdings Channel.com reports. The institutional investor owned 149,263 shares of the fast-food giant’s stock after selling 1,968 shares during the quarter. Retirement Systems of Alabama’s holdings in McDonald’s were worth $40,347,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Ascentis Wealth Management LLC increased its stake in McDonald’s by 4,008.8% in the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock valued at $22,768,000 after purchasing an additional 82,180 shares in the last quarter. Borer Denton & Associates Inc. boosted its position in shares of McDonald’s by 16.9% during the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock worth $3,746,000 after purchasing an additional 2,000 shares in the last quarter. Peterson Wealth Services grew its stake in shares of McDonald’s by 3,294.5% in the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock valued at $3,600,000 after buying an additional 11,432 shares during the period. Harbour Investments Inc. grew its stake in shares of McDonald’s by 84.4% in the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant’s stock valued at $10,853,000 after buying an additional 16,252 shares during the period. Finally, Capital International Sarl increased its position in McDonald’s by 10.4% in the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant’s stock valued at $19,639,000 after buying an additional 6,079 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction on 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 owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 8,348 shares of company stock worth $2,355,634 over the last ninety days. Insiders own 0.26% of the company’s stock.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers
• Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers
• Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys
• Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call
• Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground
• Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered
• Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report

McDonald’s Stock Up 0.1%

Shares of McDonald’s stock opened at $272.61 on Friday. The company has a market cap of $192.91 billion, a PE ratio of 22.15, a price-to-earnings-growth ratio of 3.05 and a beta of 0.41. McDonald’s Corporation has a 52 week low of $260.96 and a 52 week high of $341.75. The business has a 50 day moving average price of $273.81 and a 200-day moving average price of $295.28.

McDonald’s (NYSE:MCD) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The company’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter last year, the company earned $3.19 earnings per share. As a group, research analysts anticipate that McDonald’s Corporation will post 12.88 EPS for the current year.

McDonald’s Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald’s’s dividend payout ratio (DPR) is 60.44%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Mizuho dropped their price target on McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft boosted their price objective on McDonald’s from $335.00 to $345.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. KeyCorp cut their target price on McDonald’s from $315.00 to $305.00 and set an “overweight” rating on the stock in a report on Wednesday, August 5th. Freedom Capital raised shares of McDonald’s from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 5th. Finally, Guggenheim decreased their price target on shares of McDonald’s from $320.00 to $290.00 and set a “neutral” rating for the company in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $325.44.

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.