Tandem Investment Advisors Inc. Takes $26.97 Million Position in McDonald’s Corporation $MCD

Tandem Investment Advisors Inc. acquired a new position in McDonald’s Corporation (NYSE:MCD) during the first quarter, Holdings Channel.com reports. The firm acquired 86,791 shares of the fast-food giant’s stock, valued at approximately $26,974,000.

Other institutional investors have also recently made changes to their positions in the company. Hamilton Point Investment Advisors LLC boosted its holdings in McDonald’s by 1.8% in the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant’s stock valued at $535,000 after purchasing an additional 31 shares during the last quarter. Encompass More Asset Management grew its position in McDonald’s by 1.5% during the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock worth $648,000 after purchasing an additional 32 shares during the period. Richmond Investment Services LLC raised its stake in shares of McDonald’s by 1.4% during the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock valued at $696,000 after buying an additional 32 shares during the last quarter. Papamarkou Wellner Asset Management inc. raised its stake in shares of McDonald’s by 0.4% during the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant’s stock valued at $2,692,000 after buying an additional 32 shares during the last quarter. Finally, Physician Wealth Advisors Inc. lifted its holdings in shares of McDonald’s by 1.6% in the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant’s stock valued at $642,000 after buying an additional 33 shares during the period. Hedge funds and other institutional investors own 70.29% of the company’s stock.

More McDonald’s News

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

• Positive Sentiment: Tigress Financial raised its price target on McDonald’s to $390 from $385 and reiterated a buy rating, signaling confidence that the stock has meaningful upside from current levels.
• Positive Sentiment: Analyst coverage and commentary continue to highlight McDonald’s value offerings, loyalty efforts, localized marketing, and menu innovation as ways the company can support customer traffic and defend sales trends.
• Neutral Sentiment: McDonald’s is expected to report second-quarter earnings next month, with consensus calling for modest single-digit profit growth, keeping investor focus on whether traffic and margins improve.
• Neutral Sentiment: Recent product news, including the new Caesar sauce and other menu rollouts, is generating consumer interest, but the items appear more promotional than clearly material to near-term earnings.
• Negative Sentiment: Articles questioning why McDonald’s stock is at nearly two-year lows and noting a 10.1% decline over the past six months versus a rising S&P 500 suggest investors are worried about relative underperformance and slowing momentum.
• Negative Sentiment: Commentary describing a “McProblem” that is not getting better points to continuing concerns about business execution, customer traffic, or overall sentiment toward the stock.
• Negative Sentiment: One recent piece also urged investors to stay skeptical, indicating that while the stock may look attractive to some value investors, there are still fundamental questions weighing on shares.

Insider Activity at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president directly owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction that occurred 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 owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 8,681 shares of company stock valued at $2,456,440. Corporate insiders own 0.26% of the company’s stock.

Analysts Set New Price Targets

MCD has been the topic of a number of recent research reports. Robert W. Baird set a $305.00 target price on McDonald’s in a research note on Thursday, May 7th. Weiss Ratings cut McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. 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. Erste Group Bank lowered McDonald’s from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Finally, Deutsche Bank Aktiengesellschaft set a $325.00 price objective on shares of McDonald’s in a research note on Thursday, July 9th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $336.32.

McDonald’s Stock Down 2.1%

Shares of McDonald’s stock opened at $267.74 on Friday. McDonald’s Corporation has a twelve month low of $264.09 and a twelve month high of $341.75. The business has a 50-day moving average price of $277.07 and a 200 day moving average price of $300.33. The firm has a market cap of $190.23 billion, a PE ratio of 22.07, a P/E/G ratio of 2.78 and a beta of 0.41.

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, topping analysts’ consensus estimates of $2.74 by $0.09. The company had revenue of $6.52 billion during the quarter, compared to analysts’ expectations of $6.47 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.McDonald’s’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.67 EPS. On average, sell-side analysts expect that McDonald’s Corporation will post 12.86 EPS for the current year.

McDonald’s Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders 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 dividend on an annualized basis and a dividend yield of 2.8%. McDonald’s’s payout ratio is 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.