Analysts Raise McDonald’s Targets to $356 as Insiders and Funds Adjust Stakes
UMB Bank trimmed its position in McDonald’s by 1.6% to 128,795 shares in Q3, while Norges Bank and Amundi increased stakes totaling over $4.9 billion. Insiders sold 45,142 shares worth $13.8 million last quarter, and analysts lifted price targets up to $356 after a Q3 EPS miss of $0.11 per share.
1. Institutional Investors Adjust Stakes
In the third quarter, UMB Bank n.a. reduced its position in McDonald's by 1.6%, selling 2,144 shares and ending the quarter with 128,795 shares valued at $39.14 million. Meanwhile, several large asset managers established or increased their stakes: Norges Bank initiated a position worth $2.78 billion; Laurel Wealth Advisors added 5.72 million shares, boosting its holding to 5.74 million shares valued at $1.68 billion; Soundwatch Capital purchased a new stake of $1.41 billion; Viking Global Investors lifted its position by 171.7% to 3.13 million shares worth $913.16 million; and Amundi nearly doubled its holdings to 4.03 million shares worth $1.19 billion. Collectively, hedge funds and other institutions now own roughly 70.3% of the company.
2. Insider Selling Activity
Company insiders have continued to lighten up on their holdings, selling a total of 45,142 shares in the most recent quarter for proceeds of approximately $13.84 million. EVP Manuel J.M. Steijaert sold 6,567 shares at an average price of $305.50, while EVP Desiree Ralls‐Morrison disposed of 2,486 shares at an average of $320.00. Following these transactions, insider ownership stands at just 0.25% of outstanding shares, marking a 58.8% decline in Steijaert’s stake and a 28.4% decline in Ralls‐Morrison’s stake.
3. Recent Earnings Performance
In the latest quarter, McDonald’s reported adjusted earnings per share of $3.22, missing analysts’ consensus by $0.11, while revenue of $7.08 billion fell short of expectations by $20 million but still marked a 3.0% year‐over‐year increase. The company delivered a net margin of 32.04% and generated a negative return on equity of 280.89%, reflecting high leverage in its franchising model. Management reiterated its full‐year guidance, aiming for $12.25 in EPS and continued global same‐restaurant sales growth driven by menu optimization and digital ordering initiatives.
4. Analyst Ratings and Targets
Research firms remain split on the stock’s outlook. Thirteen analysts maintain Buy ratings, while fifteen recommend Hold and two assign Sell. Robert W. Baird raised its target to $325, TD Cowen reaffirmed a Hold rating, Morgan Stanley set a $335 objective, BMO Capital Markets reiterated Outperform, and Truist Financial lifted its price target to $356 with a Buy recommendation. The consensus target across the broker universe stands at $328.88, reflecting modest upside potential based on current forecasts.