RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, markets performed poorly, and the S&P 500 index (“S&P”) and the Russell 1000 Growth Index (RLG) declined -3.27% and -3.13%, respectively and Institutional Class (RPX) declined -4.11%. Year to date, RPX has returned 26.59% compared to the SPX and the RLG’s 13.07% and 24.98% returns, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2023.
RiverPark Advisors highlighted stocks like McDonald’s Corporation (NYSE:MCD) in the third quarter 2023 investor letter. Headquartered in South Jordan, Utah, McDonald’s Corporation (NYSE:MCD) manufactures and markets proprietary disposable medical devices. On November 16, 2023, McDonald’s Corporation (NYSE:MCD) stock closed at $276.12 per share. One-month return of McDonald’s Corporation (NYSE:MCD) was 6.98%, and its shares gained 1.01% of their value over the last 52 weeks. McDonald’s Corporation (NYSE:MCD) has a market capitalization of $200.281 billion.
RiverPark Advisors made the following comment about McDonald’s Corporation (NYSE:MCD) in its Q3 2023 investor letter:
“McDonald’s Corporation (NYSE:MCD): MCD is the world’s leading global foodservice retailer with over 40,000 locations in over 100 countries. Approximately 95% of McDonald’s restaurants worldwide are owned and operated by independent local business owners under franchise licenses. This franchise model gives MCD enough control to drive sustainably high comparable store sales (same-store-sales or SSS) through quality controls, food sourcing agreements, and culinary and technological innovation, while delivering high operating and free cash flow margins. In addition, the company’s restaurants deliver industry-leading value and have therefore performed well in good economies and bad.
We believe that a combination of 3-4% SSS growth (11.7% in the recently reported 2Q23) and 3-4% new unit growth over the coming five years will drive 7-8% revenue growth and 12-15% EPS growth. The company generates greater than 30% free cash flow margins ($8+ billion expected for 2023), pays a $1.52 dividend (2.17% yield), and bought back nearly $4 billion of stock last year. We initiated a small position in August.”
A close-up of customers ordering from a McDonald’s restaurant in Latin America.
McDonald’s Corporation (NYSE:MCD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held McDonald’s Corporation (NYSE:MCD) at the end of second quarter which was 64 in the previous quarter.
We discussed McDonald’s Corporation (NYSE:MCD) in another article and shared the list of most valuable restaurant companies in the world. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
