McDonald’s Corporation (MCD) Posts Q4 Earnings Beat, Shares Soar


Investors had been waiting anxiously for McDonald’s (NYSE:MCD) fourth quarter earnings report this morning, and if they were long the stock are likely quite happy to start this week off. Today McDonald’s Corporation (NYSE:MCD) beat analyst expectations, reporting an EPS of $1.31 vs a consensus of $1.23. Also the company has grown profits significantly compared to the same quarter last year when they reported just $1.13 per share.

With this said, revenue for the quarter was down more than $230 million since last year’s fourth quarter, but cost-cutting measures have raised the profitability of the company to a new level. While U.S. same-restaurant sales rose 5.7% from a year ago, global sales also did quite well, rising 5%, well above the 3.2% that analysts were expecting. Shares of McDonald’s Corporation (NYSE:MCD) are up $3.77 or 3.18% in pre-market trading this morning. The stock increased 0.48% or $0.56 during the last trading session, hitting $118.4. About 95,099 shares traded hands. MCD has risen 23.12% since June 18, 2015 and is uptrending. It has outperformed the S&P500 by 31.98%.

From a total of 11 analysts covering McDonald’s Corporation (NYSE:MCD) stock, 11 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $130 while the lowest target price is $35. The mean of all analyst targets is $113.79 which is -3.89% below today’s ($118.4) stock price. McDonald’s Corporation was the topic of 22 analyst reports since September 29, 2015 according to the firm StockzIntelligence Inc. Nomura upgraded shares on January 4 to a “Buy” rating. Piper Jaffray upgraded shares to a”Overweight” rating and a $130 target share price in their report from an October 23. Barclays Capital maintained MCD stock in a recent report from November 11 with a “Overweight” rating. SunTrust initiated the rating on October 13. SunTrust has a “Buy” rating and a $117 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Outperform” rating in a report they issued on a November 11.

The institutional sentiment increased to 0.72 in Q2 2015. It’s up 0.11, from 0.61 in 2015Q2. The ratio increased, as 79 funds sold all their McDonald’s Corporation shares they owned while 662 reduced their positions. 92 funds bought stakes while 438 increased their total positions. Institutions now own 567.05 million shares which is 10.07% less than the previous share count of 630.58 million in 2015Q2.

Highfields Capital Management Lp holds 10.24% of its total portfolio in McDonald’s Corporation, equating to 11.78 million shares. Silver Rock Financial Llc owns 144,605 shares representing 8.79% of their total US portfolio. Moreover, Wcg Management L.P. has 8.05% of their total portfolio invested in the company, equating to 181,835 shares. The Tennessee-based Southeastern Asset Management Inc Tn has a total of 7.02% of their portfolio invested in the stock. Covey Capital Advisors Llc, a Georgia-based fund reported 121,470 shares owned.

Since March 13, 2015, the stock had 0 buys, and 1 sale for a total of $1.21 million in net activity. Goare Douglas M sold 12,050 shares worth $1.21 million. Hoffmann David L sold 979 shares worth $94,317. Mcmillan Cary D sold 1,075 shares worth $105,447. Armario Jose sold 10,000 shares worth $975,800. The insider Sappington James R sold 11,123 shares worth $1.08 million.

McDonald’s Corporation operates and franchises McDonald’s restaurants. The company has a market cap of $108.72 billion. McDonald’s global system comprises both Company-owned and franchised restaurants. It has 25.6 P/E ratio. The Firm manages its business as distinct geographic divisions: the United States ; Europe, and Asia/Pacific, Middle East and Africa (APMEA).