Matrix Asset Advisors, an asset management company, released its Q2 2026 investor letter. A copy of the letter can be downloaded here. The stock market rebounded strongly in the second quarter, with the S&P 500 gaining 15.2% in the quarter and 10.2% year-to-date. Investors overlooked inflation concerns exceeding 4% and geopolitical tensions, focusing instead on robust corporate earnings, AI-driven growth, easing energy prices, and a stable economy. In the second quarter, the Large Cap Value portfolio rose in the mid-teens, in line with the S&P 500 and slightly ahead of the Russell 1000 Value Index. Key contributors included Technology, Financials, and Industrials, while Consumer Staples and Healthcare lagged. The Dividend Income strategy posted high-single-digit gains, supported by the Financials, Technology, and Consumer Discretionary sectors. Fixed income delivered modestly positive returns in the second quarter. Matrix remains cautiously optimistic, expecting volatility but positioning portfolios for continued growth with attractive valuations and diversified exposure. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Matrix Asset Advisors highlighted McDonald’s Corporation (NYSE:MCD). McDonald’s Corporation (NYSE:MCD) is a leading fast-food restaurant company, operating under the McDonald’s brand. On August 6, 2026, McDonald’s Corporation (NYSE:MCD) closed at $276.26 per share, with a market capitalization of $196.28 billion. The stock currently offers a 2.69% dividend yield, with an annual payout of $7.35 ($1.86 quarterly). McDonald’s Corporation (NYSE:MCD) posted a one-month return of 0.60%, while its shares lost 9.56% over the past 52 weeks.
Matrix Asset Advisors stated the following regarding McDonald’s Corporation (NYSE:MCD) in its Q2 2026 investor letter:
“During the quarter, we started new partial positions in Abbott Laboratories (ABT) and McDonald’s Corporation (NYSE:MCD). MCD is a multinational fast-food chain known for its hamburgers, French fries, and signature items such as the Big Mac and Happy Meal. Historically, the company’s financial performance has been very resilient. Ninety-five percent of McDonald’s restaurants are owned by franchisees who pay employee wages, local utilities, and food costs. The company charges franchisees for rent, sales royalties, and a one-time licensing fee. MCD generates significant cash flow and has paid a dividend every year since declaring its first dividend in 1976. The company’s shares were trading near their 52-week low amid concerns about weaker customer traffic, the negative impact of inflation on consumer spending, and price wars. We believe the company will work through these near-term issues, and the current lower share price and healthy dividend make it an attractive investment for the MDI portfolio. At our purchase price, the dividend yield was 2.8%.”
McDonald’s Corporation (NYSE:MCD) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held McDonald’s Corporation (NYSE:MCD) at the end of the first quarter which was 91 in the previous quarter. While we acknowledge the risk and potential of McDonald’s Corporation (NYSE:MCD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than McDonald’s Corporation (NYSE:MCD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered McDonald’s Corporation (NYSE:MCD) and shared Carillon Eagle Growth & Income Fund’s insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
