Manuel JM Steijaert, the Executive Vice President and President of International Operated Markets at McDonald’s (MCD), sold $4 million of company stock on the same day that the restaurant chain reported disappointing third-quarter financial results.
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Steijaert sold 13,134 shares of MCD stock for proceeds of $3.95 million on Nov. 5, the day that the company released its Q3 print. Following the sale, Steijaert still owns 4,606 shares of MCD stock valued at $1.38 million.
The stock sales is notable as it occurred on the day that McDonald’s delivered financial results that missed Wall Street forecasts on both the top and bottom lines. Citing weak demand among consumers, notably low-income clientele, McDonald’s delivered misses on both its sales and profits for this year’s third quarter.
Poor Showing
The company known for its hamburgers and fries announced earnings per share (EPS) of $3.22, which was below the $3.33 consensus expectation of analysts. Revenue in the quarter totaled $7.08 billion, which was below the $7.10 billion forecast on Wall Street.
McDonald’s CEO Chris Kempczinski said the current operating environment is “challenging” as consumers dine out less often. Restaurant spending among low-income diners has become particularly challenged, he noted. MCD stock has risen 5% this year.
Is MCD Stock a Buy?
The stock of McDonald’s has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 11 Buy and 13 Hold recommendations issued in the last three months. The average MCD price target of $323.79 implies 8% upside from current levels.
