Cohen Investment Advisors LLC, a prominent investment firm, has recently disclosed a decrease in its holdings of McDonald’s Co. (NYSE:MCD) by 8.0% during the second quarter of the fiscal year 2023. According to company filings with the Securities and Exchange Commission (SEC), the fund now owns 9,253 shares of McDonald’s stock after selling off 806 shares during this quarter. This reduction in holdings reflects a strategic decision by Cohen Investment Advisors LLC regarding its investment portfolio.
At present, McDonald’s constitutes approximately 2.2% of Cohen Investment Advisors LLC’s overall portfolio, making it the 11th largest position within their holdings. As per the most recent SEC filing, the total value of Cohen Investment Advisors LLC’s stake in McDonald’s stands at $2,761,000. This information provides investors and market observers with insights into the strategy and allocation decisions made by one of the key players in the investment field.
In its last quarterly earnings report released on July 27th, McDonald’s exhibited promising financial results for shareholders. The fast-food giant reported earnings per share (EPS) of $3.17 for that quarter, surpassing analysts’ consensus estimate of $2.77 by an impressive margin of $0.40. Despite challenges faced by various sectors due to global uncertainties, McDonald’s demonstrated noteworthy performance.
Moreover, while some companies struggled to maintain profitability during this period, McDonald’s showcased a net margin of 33.06%. It is worth noting that negative return on equity figures were also reported for this period at 139.57%, indicating particular areas for improvement moving forward.
Furthermore, McDonald’s recorded revenue amounting to $6.50 billion for the quarter under review, outperforming market expectations set at $6.30 billion by analysts—a clear testament to its strong operational performance even amidst difficult economic conditions globally.
In comparison to the corresponding quarter last year when the company posted earnings per share of $2.55, McDonald’s has demonstrated remarkable growth, with a 13.6% increase in revenue. This upward trajectory reflects the company’s continued efforts to adapt to changing consumer trends and innovate its offerings while maintaining strong financial performance.
Looking ahead, research analysts predict that McDonald’s Co. is poised to deliver an annual earnings per share figure of 11.52 for the current year—a projection that solidifies optimism about the future prospects of the company in terms of financial growth.
As investors and market participants continue to monitor developments within the fast-food industry, it is crucial to assess key players such as McDonald’s and their performance indicators accurately. Maintaining awareness of changes in holdings by influential firms like Cohen Investment Advisors LLC contributes to an informed understanding of market dynamics and investment trends.
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Institutional Investors and Hedge Funds Show Confidence in McDonald’s Corporation Amidst Growth Potential
Institutional investors and hedge funds have made significant adjustments to their holdings of McDonald’s Corporation (NYSE: MCD), reflecting the confidence they have in the fast-food giant’s potential for growth. Oak Harvest Investment Services, for example, increased its holdings in McDonald’s by 6.9% during the second quarter, now owning 19,768 shares with a value of $5,899,000. Similarly, Long Run Wealth Advisors LLC bought a new position in McDonald’s worth $204,000 during the same period.
Other entities such as Hixon Zuercher LLC and Capstone Triton Financial Group LLC also acquired additional shares of McDonald’s stock, resulting in a collective ownership by institutional investors and hedge funds amounting to 67.60% of the company’s total shares.
McDonald’s stock opened at $269.72 on September 26, 2023, with a one-year low of $230.58 and a one-year high of $299.35. The stock has been displaying a relatively stable performance recently, maintaining a fifty-day simple moving average of $284.80 and a two-hundred-day simple moving average of $286.54.
Furthermore, McDonald’s announced a quarterly dividend on September 18th which was paid to shareholders who were recorded before September 1st. The dividend amounted to $1.52 per share, resulting in an annualized dividend of $6.08 and yielding 2.25%. Considering this payout ratio is currently at 55.93%, shareholders can anticipate consistent returns from their investments.
Several equity research analysts have shared their perspectives on McDonald’s stock as well. Bank of America adjusted their target price from $319.00 to $3430 and assigned the company a “neutral” rating in their research note published on July 28th. Truist Financial lowered their price target from $340 to $335 but maintained a “buy” rating on the stock in a report on September 20th. Additionally, Morgan Stanley increased their target price from $315.00 to $320.00 and gave the stock an “overweight” rating on July 17th.
Considering the diverse opinions of analysts, it is important to note that Bloomberg.com reports that McDonald’s currently holds a consensus rating of “Moderate Buy” with an average target price of $323.63 assigned by market experts.
Overall, the adjustments made by institutional investors and hedge funds, combined with steady performance indicators and favorable dividend payouts, contribute to the overall positive outlook for McDonald’s Corporation. As always, investors should conduct their own thorough research before making any investment decisions regarding McDonald’s or any other company in order to ensure informed choices aligned with their specific financial goals.
