Is McDonald’s Corporation (MCD) A Good Stock To Buy?

It is also important to note that McDonald’s Corporation (NYSE:MCD) is among the highly-scrutinized collection of dividend aristocrats, as the company has increased its annual dividend payments for 39 straight years. The fast food restaurant chain pays out an annual dividend of $3.56 per share, which denotes a current dividend yield of 3%. Meanwhile, the stock is priced at 19.58-timed expected fiscal 2017 earnings, substantially below the forward P/E multiple of 24 for the Restaurants industry. According to Euromonitor International, the global informal eating out (IEO) segment generated approximately $1.2 trillion in annual sales in 2014, with McDonald’s restaurant business accounting for 7.2% of those sales. Therefore, McDonald’s can keep growing in the upcoming years considering the massive size of the global IEO segment and the company’s recent turnaround efforts.

Keeping this in mind, let’s check out the fresh action regarding McDonald’s Corporation (NYSE:MCD).

How are hedge funds trading McDonald’s Corporation (NYSE:MCD)?

At Q4’s end, a total of 84 of the hedge funds tracked by Insider Monkey were long this stock, a change of 12% from the third quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Jonathon Jacobson’s Highfields Capital Management has the number one position in McDonald’s Corporation (NYSE:MCD), worth close to $1.41 billion, corresponding to 12.1% of its total 13F portfolio. On Highfields Capital Management’s heels is OZ Management, managed by Daniel S. Och, which holds a $653.7 million position; the fund has 3.6% of its 13F portfolio invested in the stock. Remaining members of the smart money with similar optimism encompass First Eagle Investment Management, and Howard Guberman’s Gruss Asset Management.