Latest news with #McDonald'sCorporation
Yahoo
26-05-2025
- Business
- Yahoo
With 76% ownership, McDonald's Corporation (NYSE:MCD) boasts of strong institutional backing
Institutions' substantial holdings in McDonald's implies that they have significant influence over the company's share price 48% of the business is held by the top 25 shareholders Recent sales by insiders We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Every investor in McDonald's Corporation (NYSE:MCD) should be aware of the most powerful shareholder groups. With 76% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. Let's take a closer look to see what the different types of shareholders can tell us about McDonald's. Check out our latest analysis for McDonald's Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that McDonald's does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see McDonald's' historic earnings and revenue below, but keep in mind there's always more to the story. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in McDonald's. Looking at our data, we can see that the largest shareholder is The Vanguard Group, Inc. with 9.8% of shares outstanding. With 7.3% and 4.8% of the shares outstanding respectively, BlackRock, Inc. and State Street Global Advisors, Inc. are the second and third largest shareholders. A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that McDonald's Corporation insiders own under 1% of the company. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own US$146m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying. The general public-- including retail investors -- own 24% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that McDonald's is showing 2 warning signs in our investment analysis , you should know about... Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
23-05-2025
- Business
- Yahoo
McDonald's Corporation (MCD) to Close CosMc's Locations, Bring Drink Flavors to Core Menu
McDonald's Corporation (NYSE:MCD) announced on Friday that it will be closing its CosMc's chain, a beverage-focused offshoot launched just two years ago. McDonald's Corporation (NYSE:MCD) stated that shutdowns of the standalone CosMc's pilot locations will begin in June, along with the discontinuation of the CosMc's mobile app. The company made the following statement: "The main goal of the CosMc's test was to create a launchpad for learning for the McDonald's System– and the insights we've gathered have given us a whole new way to get closer to our fans. We've learned so much, so quickly from the CosMc's test. As part of this next testing phase, starting in late June, we will be closing all stand-alone pilot CosMc's locations on a rolling basis and discontinuing the CosMc's app." The first CosMc's store opened in Illinois in December 2023, aiming to rival Starbucks and Dunkin' by offering customizable drinks that traditional McDonald's outlets typically don't serve. While McDonald's Corporation (NYSE:MCD) didn't specify which ones, it said some of CosMc's beverage offerings would be added to the main menu at its core restaurants. CosMc's marked McDonald's first new US restaurant concept in over 60 years, designed to attract younger customers with vibrant, sweet drinks like frappés, lattes, and slushes. Back in March, McDonald's Corporation (NYSE:MCD) indicated it was shifting more focus toward beverages within a newly created division, with one of CosMc's leaders transitioning to help lead the effort. Earlier this month, the company noted it had initially worried the drinks might be too complex for standard McDonald's kitchens, but customer demand for customizations was lower than expected. It also found it could potentially boost food sales by offering the drinks in its regular restaurants instead of keeping them limited to CosMc's. MCD has surged by over 7.5% in 2025 so far. While we acknowledge the potential of MCD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MCD and that has 100x upside potential, check out our report about this cheapest AI stock. READ MORE: and Disclosure. None.
Yahoo
23-05-2025
- Business
- Yahoo
McDonald's Affirms Financial Strength with $1.77 Quarterly Dividend
Despite facing a challenging macro environment characterized by reduced traffic in fast food chains, McDonald's Corporation's (NYSE:MCD) has reiterated its commitment to returning value to shareholders. On May 20, the company announced a $1.77 quarterly cash dividend, payable on June 16, to shareholders of record as of June 2, 2025. Ken Wolter / McDonald's has always been a staple in income-focused portfolios, given its impressive record in returning value through dividends. Backed by a globally recognized brand and efficient franchise models, the company has paid dividends for 47 years. The nearly half-century commitment underscores the company's commitment to shareholder value, backed by solid financial strength. The company boasts a solid five-year dividend growth rate of 5.96%. Its current yield of 2.21% outpaces the S&P 500 average yield of 1.32%. While its payout is 57.2%, there is room for future growth. The new $1.77 a share dividend comes on the heels of McDonald's delivering mixed first-quarter results. Revenue in the quarter was down by 3%, hurt by a 3.6% same-store sales drop, the steepest decline since 2020. The company is facing slowing consumer spending amid heightened inflation. Nevertheless, the stock has outperformed the overall market by an 8% year-to-date gain. Likewise, Loop Capital has reiterated a Buy rating on the stock with a $346 price target. While we acknowledge the potential of McDonald's Corporation (NYSE:MCD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MCD and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None.
Yahoo
23-05-2025
- Business
- Yahoo
McDonald's Affirms Financial Strength with $1.77 Quarterly Dividend
Despite facing a challenging macro environment characterized by reduced traffic in fast food chains, McDonald's Corporation's (NYSE:MCD) has reiterated its commitment to returning value to shareholders. On May 20, the company announced a $1.77 quarterly cash dividend, payable on June 16, to shareholders of record as of June 2, 2025. Ken Wolter / McDonald's has always been a staple in income-focused portfolios, given its impressive record in returning value through dividends. Backed by a globally recognized brand and efficient franchise models, the company has paid dividends for 47 years. The nearly half-century commitment underscores the company's commitment to shareholder value, backed by solid financial strength. The company boasts a solid five-year dividend growth rate of 5.96%. Its current yield of 2.21% outpaces the S&P 500 average yield of 1.32%. While its payout is 57.2%, there is room for future growth. The new $1.77 a share dividend comes on the heels of McDonald's delivering mixed first-quarter results. Revenue in the quarter was down by 3%, hurt by a 3.6% same-store sales drop, the steepest decline since 2020. The company is facing slowing consumer spending amid heightened inflation. Nevertheless, the stock has outperformed the overall market by an 8% year-to-date gain. Likewise, Loop Capital has reiterated a Buy rating on the stock with a $346 price target. While we acknowledge the potential of McDonald's Corporation (NYSE:MCD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MCD and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Earnings Update: McDonald's Corporation (NYSE:MCD) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts
McDonald's Corporation (NYSE:MCD) just released its latest quarterly report and things are not looking great. McDonald's missed analyst forecasts, with revenues of US$6.0b and statutory earnings per share (EPS) of US$2.60, falling short by 2.8% and 3.3% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on McDonald's after the latest results. We've discovered 2 warning signs about McDonald's. View them for free. Taking into account the latest results, the most recent consensus for McDonald's from 30 analysts is for revenues of US$26.4b in 2025. If met, it would imply a modest 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 7.0% to US$12.22. Before this earnings report, the analysts had been forecasting revenues of US$26.5b and earnings per share (EPS) of US$12.31 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. View our latest analysis for McDonald's There were no changes to revenue or earnings estimates or the price target of US$332, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic McDonald's analyst has a price target of US$364 per share, while the most pessimistic values it at US$300. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that McDonald's' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 6.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that McDonald's is also expected to grow slower than other industry participants. The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that McDonald's' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$332, with the latest estimates not enough to have an impact on their price targets. With that in mind, we wouldn't be too quick to come to a conclusion on McDonald's. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple McDonald's analysts - going out to 2027, and you can see them free on our platform here. We don't want to rain on the parade too much, but we did also find 2 warning signs for McDonald's (1 is significant!) that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
