McDonald’s Q3 EPS Misses Estimates as UMB Bank Trims Stake by 1.6%

MCDMCD

McDonald’s Q3 EPS was $3.22 vs $3.33 consensus and revenues were $7.08B vs $7.10B estimates. UMB Bank n.a. cut its stake by 1.6% to 128,795 shares, while insiders sold 45,142 shares worth $13.84M, leaving institutions with 70.29% ownership.

1. Trading Session Outperformance

In the most recent trading session, McDonald’s shares closed with a 1.12% gain, outperforming the broader market indices. Volume was notably higher than the ten-day average, reflecting elevated investor interest in the company’s resilience amid consumer spending concerns. The stock’s short-term moving average also turned upward, signaling potential momentum for near-term traders.

2. Institutional Portfolio Adjustments

According to the latest 13F filings, UMB Bank n.a. trimmed its McDonald’s stake by 1.6%, reducing its holding to 128,795 shares. Meanwhile, Norges Bank initiated a new position of approximately 8.7 million shares, and Laurel Wealth Advisors expanded its exposure by more than 29,000% to over 5.7 million shares. Collectively, hedge funds and other institutional investors now own just over 70% of outstanding McDonald’s stock, underscoring continued confidence from large asset managers.

3. Insider Transactions and Ownership Trends

In the last quarter, company insiders sold a total of 45,142 shares, representing a 0.25% insider ownership level. Executive vice presidents reduced their positions by 58.8% and 28.4% respectively, selling 6,567 and 2,486 shares. Despite these sales, insider ownership remains aligned with historical norms for a mature, dividend-paying company, and no insider has increased their stake during this period.

4. Analysts’ Consensus and Expected Earnings Growth

Among 30 analysts covering the name, 13 rate it as a buy, 15 as a hold and 2 as a sell, producing a consensus hold recommendation. The average price target implies upside from current levels. For the fiscal year, analysts forecast earnings per share of 12.25, reflecting mid‐single‐digit growth driven by menu price adjustments and ongoing digital sales penetration. The company’s revenue is expected to rise by approximately 3% year-over-year, supported by new market openings and expanded delivery partnerships.

Sources

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