McDonald’s (NYSE:MCD) Shares Up 0.7% Following Dividend Announcement

McDonald’s Co. (NYSE:MCD)’s stock price shot up 0.7% during trading on Friday following a dividend announcement from the company. The stock traded as high as $253.84 and last traded at $253.16. 671,732 shares traded hands during mid-day trading, a decline of 81% from the average session volume of 3,453,392 shares. The stock had previously closed at $251.46.

The newly announced dividend which will be paid on Tuesday, September 17th. Shareholders of record on Tuesday, September 3rd will be given a $1.67 dividend. This represents a $6.68 annualized dividend and a yield of 2.64%. McDonald’s’s dividend payout ratio (DPR) is 56.71%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on MCD. Bank of America lowered their price objective on shares of McDonald’s from $302.00 to $288.00 and set a “neutral” rating for the company in a research report on Tuesday, May 28th. UBS Group decreased their price target on shares of McDonald’s from $340.00 to $335.00 and set a “buy” rating for the company in a research report on Friday, April 5th. Wedbush reissued an “outperform” rating and set a $295.00 price target on shares of McDonald’s in a research report on Friday, July 19th. Erste Group Bank reissued a “hold” rating on shares of McDonald’s in a research report on Wednesday, April 3rd. Finally, TD Cowen decreased their price target on shares of McDonald’s from $305.00 to $285.00 and set a “buy” rating for the company in a research report on Wednesday, July 17th. Ten investment analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $308.57.

McDonald’s Stock Up 0.7 %

The business has a 50 day simple moving average of $255.85 and a 200-day simple moving average of $274.06. The company has a market capitalization of $182.45 billion, a P/E ratio of 21.49, a PEG ratio of 2.91 and a beta of 0.71.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Tuesday, April 30th. The fast-food giant reported $2.70 earnings per share for the quarter, missing analysts’ consensus estimates of $2.71 by ($0.01). McDonald’s had a net margin of 33.36% and a negative return on equity of 180.74%. The company had revenue of $6.17 billion for the quarter, compared to the consensus estimate of $6.16 billion. During the same quarter in the prior year, the firm earned $2.63 earnings per share. McDonald’s’s revenue for the quarter was up 4.6% compared to the same quarter last year. Equities analysts forecast that McDonald’s Co. will post 12.13 EPS for the current fiscal year.

Insider Activity at McDonald’s

In related news, EVP Jonathan Banner sold 800 shares of McDonald’s stock in a transaction dated Friday, May 10th. The shares were sold at an average price of $275.02, for a total transaction of $220,016.00. Following the sale, the executive vice president now directly owns 19 shares in the company, valued at $5,225.38. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In related news, EVP Marion K. Gross sold 1,498 shares of McDonald’s stock in a transaction dated Wednesday, July 3rd. The stock was sold at an average price of $248.26, for a total transaction of $371,893.48. Following the transaction, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at $387,285.60. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Jonathan Banner sold 800 shares of McDonald’s stock in a transaction dated Friday, May 10th. The stock was sold at an average price of $275.02, for a total value of $220,016.00. Following the transaction, the executive vice president now directly owns 19 shares in the company, valued at $5,225.38. The disclosure for this sale can be found here. Insiders have sold a total of 5,594 shares of company stock worth $1,454,507 over the last ninety days. 0.23% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of MCD. Dixon Mitchell Investment Counsel Inc. purchased a new position in McDonald’s in the 1st quarter worth about $28,000. Signature Resources Capital Management LLC purchased a new position in McDonald’s in the 4th quarter worth about $31,000. Clear Investment Research LLC purchased a new position in McDonald’s in the 4th quarter worth about $38,000. Keener Financial Planning LLC purchased a new position in McDonald’s in the 4th quarter worth about $39,000. Finally, Atlantic Edge Private Wealth Management LLC purchased a new position in McDonald’s in the 4th quarter worth about $39,000. 70.29% of the stock is owned by institutional investors and hedge funds.

About McDonald’s

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.