Business
McDonald’s Stock Slips Again Today, Trading Near 52-Week Lows Despite Four Quarters of Rising Comparable Sales
McDonald’s shares fell again Monday, extending a steep slide that has pushed the world’s largest restaurant franchisor down more than 20% from its early-year highs, even as the company’s underlying sales trends have continued to strengthen.
Shares of the Chicago-based company were trading at $266.33 as of noon EDT, down $3.43, or 1.27%, on the day. The decline keeps the stock hovering close to its 52-week low of roughly $270, a level it first touched on June 22, and well off its 52-week high of $337.56, reached in late February. The roughly 20% drawdown over the past four months stands in contrast to a business that has, by most measures, continued to perform well operationally.
McDonald’s first-quarter 2026 results, reported earlier this year, showed earnings per share of $2.83, ahead of analyst estimates of $2.74, while revenue climbed 9.4% year-over-year to $6.52 billion. Global comparable sales rose 3.8%, a sharp reversal from a 1% decline in the same period a year earlier, with U.S. comparable sales up 3.9% and international operated markets posting 14% revenue growth. According to recent analyst commentary, the quarter marked the fourth consecutive period of accelerating global comparable sales for the chain, a streak that has continued even as the stock has fallen.
Several factors appear to be weighing on the shares despite that operational momentum. Broader sector rotation has played a meaningful role, with institutional investors shifting money away from defensive consumer names like McDonald’s and into higher-growth technology and semiconductor stocks amid the ongoing artificial intelligence investment boom. Persistently sticky inflation data has also raised concerns that interest rates could stay elevated longer than previously expected, a dynamic that tends to weigh on consumer discretionary spending and, by extension, restaurant stocks broadly. McDonald’s has faced its own version of that pressure directly, with customers increasingly pushing back against menu pricing even as the company has leaned on value-focused promotions to keep traffic steady, particularly among lower-income consumers who have grown more price-sensitive.
Company-specific decisions have added to the uncertainty. McDonald’s recently discontinued its long-running “Wrap of the Day” promotion, a roughly 15-year-old offering, a move some analysts have flagged as a potential risk to customer traffic at a moment when overall quick-service foot traffic across the industry is already softening. At the same time, the company rolled out a new systemwide initiative called “McDonald’s NEXT” earlier this month, aimed at improving food quality, expanding automation, enhancing digital ordering and strengthening franchise economics across its nearly 46,000 restaurants. While the program has been broadly welcomed as a long-term positive, some analysts have characterized the automated rollout as unproven at this stage, introducing near-term execution risk and requiring heavy upfront investment in labor and capital just as franchisee margins are already under pressure. Separately, the company has leaned into nostalgia marketing, reintroducing its Fried Apple Pie to U.S. menus for the first time in 34 years in an effort to drive renewed customer engagement.
Wall Street’s reaction to the stock’s pullback has been mixed. KeyBanc lowered its price target on McDonald’s to $315 from $330 earlier Monday while maintaining a Buy rating on the shares, according to research tracked by financial data providers. Other firms have taken a more cautious stance, with Erste Group and RBC Capital both reaffirming Hold ratings on the stock in recent days. Across a broader pool of analysts, the consensus price target sits at roughly $331, with estimates ranging from a high of $375 to a low of $300, and ratings split between 19 Buy recommendations, 14 Hold ratings and a single Sell, reflecting a genuinely divided view on where the stock goes from here. Some recent insider selling, including a multimillion-dollar stock sale by a top McDonald’s executive earlier this month, has added to investor unease even as at least one institutional investor, SG Americas, increased its stake in the company by nearly 69% during the recent pullback, a move some market watchers have read as a sign of growing conviction that the stock’s decline has been overdone.
McDonald’s underlying financial profile continues to support its reputation as one of the more durable cash-generating businesses in the restaurant industry. The company posted roughly $7.19 billion in free cash flow over the trailing year and reported annual net profit of $8.56 billion, ranking it first among its peers in the broader consumer services sector despite trailing some rivals in total revenue. McDonald’s also remains a Dividend Aristocrat, having raised its payout for decades, including a 5% increase in October 2025 that brought its quarterly dividend to $1.86 per share, translating to a yield of roughly 2.6%, above the broader industry average. The company’s most recent dividend was paid June 16 to shareholders of record as of June 2.
Looking ahead, the company has outlined plans to open roughly 2,600 new restaurants globally in 2026 and has set a target of reaching a mid-to-high 40% operating margin over time, underscoring management’s continued confidence in the underlying business model even amid the stock’s recent weakness. Analysts tracking the company have pointed to a planned investor event tied to the NEXT initiative, expected in September, as the most likely near-term catalyst that could help re-rate the stock if management can convincingly demonstrate progress on automation, digital engagement and franchise profitability.
Risks to that more optimistic view remain real. Restructuring charges tied to the NEXT rollout are expected to run through 2027, while the company faces 4% to 6% higher interest expense and a higher effective tax rate of 22%, compared with roughly 19.8% previously. Broader margin pressure across the restaurant industry, illustrated by a recent decline in Chipotle’s restaurant-level operating margin, suggests McDonald’s is not alone in navigating a tougher cost environment, even as its scale and largely franchised model continue to set it apart from many competitors.
For now, McDonald’s finds itself in an unusual position: a business posting improving sales trends and steady cash generation, trading near multiyear lows on its stock price, caught between near-term investor caution over execution risk and rising costs, and a longer-term bull case built around the durability of its global franchise model and its ability to keep adapting its value proposition to changing consumer habits.
In the past two days, the scrip recorded a gain of over 9 per cent on the BSE, making its investors richer by a whopping Rs 15,000 crore.
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Krabi Province saw a significant rise in staycation bookings on Traveloka, doubling compared to last year. This growth highlights traveler confidence and showcases Krabi’s appeal for short getaways, enhanced by coordinated efforts for improved tourism standards and safety.
Key Points
- Krabi Province saw a significant rise in staycation accommodation bookings on Traveloka, more than doubling from last year, indicating strong traveler confidence in the region’s appeal as a destination for short getaways.
- The area’s popularity is attributed to its stunning beaches, islands, natural attractions, quality accommodations, and unique dining options, attracting travelers who desire relaxation, exploration, and wellness experiences.
- Governor Angkoon Silathewakul acknowledged the collaborative efforts of government, private sectors, and local communities in enhancing service standards and safety, reinforcing Krabi’s commitment to high-quality, sustainable tourism experiences.
Krabi Province recorded Thailand’s highest growth in staycation accommodation bookings on Traveloka, with bookings more than doubling compared to the same period last year. This increase demonstrates strong traveler confidence in Krabi as a leading destination for short-term getaways.
The booking data confirms Krabi’s ongoing popularity, supported by its renowned beaches, islands, natural attractions, quality accommodations, and distinctive dining options. These features appeal to travelers seeking experiences that combine relaxation, exploration, and wellness.
Krabi Governor Angkoon Silathewakul credited this growth to the joint efforts of government agencies, the private sector, tourism operators, and local communities. He noted that these groups have consistently worked to raise service standards, enhance public facilities, and promote tourism activities.
The governor emphasized the administration’s commitment to visitor safety, maintaining tourist site quality, and ensuring convenient travel. He highlighted that Krabi offers both natural beauty and a safe, welcoming environment for all visitors. Authorities remain dedicated to enhancing local tourism to provide memorable and secure experiences.
The increase in staycation travel reflects a shift in traveler preferences toward short two- to three-day trips for relaxation. This trend strengthens Krabi’s position as a leading destination for experiential travel in Thailand and supports its goal of becoming a sustainable, high-quality tourism hub.
Source : Krabi Leads Thailand in Staycation Booking Growth on Traveloka
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I have a strong interest in fundamental equity research, with a focus on companies with smaller market capitalizations. I look for underfollowed or misunderstood businesses with solid fundamentals, attractive long-term potential, and valuations that may not fully reflect their prospects.My approach emphasizes business quality, financial performance, management, capital allocation, valuation, and downside risk. I write on Seeking Alpha to share independent investment ideas, refine my research, and engage with other investors.Closely associated with Rafael Binatti Costa.
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Amelia Lee
Head of Investor Relations & Corporate Communications
Good morning, everyone. Thank you for joining us at Seatrium’s First Half 2026 Results Briefing. My name is Amelia, and I take care of Investor Relations for Seatrium. This morning, we have with us our CEO, Mr. Chris Ong; our CFO, Dr. Stephen Liu.
Chris and Stephen will bring us through a short presentation before we open the floor to questions. Chris, please?
Leng Yeow Ong
CEO & Executive Director
Thank you, Amelia. Good morning, and thank you for joining us today for Seatrium’s First Half 2026 Results Briefing. Today’s results center on 3 key themes. First, despite macroeconomic uncertainties, we continue to deliver strong progress. While revenue maintained healthy momentum, our primary focus is driving margin efficiencies. Our cost optimization and divestments are delivering real sustainable benefits.
Second, we remain well positioned to capture opportunities from a global pipeline of over $32 billion. Although the market was relatively quiet in the first half, we are actively engaged across all major energy markets and expect FID momentum to accelerate in the coming quarters. Our net order book remains healthy at $13.3 billion, providing clear near-term earning visibility with a higher quality project mix.
Third, we are shifting from recovery to value creation. This means growing earnings, generating cash and building resilience by scaling our series built and adjacent services
Business
Second Ransom Note in Nancy Guthrie Case Claims Her Death Shortly After Abduction, Remains Unverified
A second ransom note connected to the disappearance of Nancy Guthrie, the 84-year-old mother of “Today” show co-anchor Savannah Guthrie, claims that Guthrie died shortly after being abducted from her Tucson, Arizona, home in early February, though authorities say they have not been able to verify that claim and continue to treat the case as an active missing-person investigation.
The message, dated Feb. 6, states that Guthrie “perished shortly after she was taken” and says she is “buried in nature.” The note’s author apologizes to the Guthrie family, describing her death as unintentional and attributing it to a “heart related” cause. The note continues, “We did not fully grasp the seriousness of her physical condition. We never intended to hurt her, that was not our intention. She perished shortly after she was taken. We believe it was heart related.” It concludes, “Nothing you could have done could have changed the outcome,” followed by an apology to the family.
Guthrie was last seen on the evening of Jan. 31 at her home in Tucson’s Catalina Foothills neighborhood. Family members reported her missing the following day after she failed to attend church, prompting an investigation that authorities have consistently treated as a suspected abduction from the outset.
An earlier ransom note, received Feb. 2, demanded $4 million in bitcoin by 5 p.m. on Feb. 5, with the demand increasing to $6 million if payment was delayed until Feb. 9. That first note included details investigators say suggested the author may have had direct knowledge of the crime scene, including references to a white smartwatch found on the floor beside Guthrie’s bed and a damaged floodlight outside the home. Investigators have said those details are significant but have not confirmed the note’s authenticity.
In late July, the Pima County Sheriff’s Department publicly released both ransom notes, saying it hoped members of the public might recognize the wording, writing style or other distinctive linguistic characteristics that could help identify the sender. Investigators believe both notes were sent from the same IP address, though the sender has not been publicly identified.
Savannah Guthrie has previously said she believes the two released notes may be authentic, distinguishing them from other messages the family received that she believes were fraudulent. “I tend to believe those are real,” she said in March, adding that the family had responded to the notes. In February, she also posted a public appeal on Instagram directed at whoever sent the messages. “We received your message and we understand,” she wrote. “We beg you now to return our mother to us so that we can celebrate with her.” She later told fellow “Today” host Hoda Kotb that the family could not find peace without knowing what had happened to her mother, urging anyone with information to contact investigators.
More than six months after Guthrie’s disappearance, the investigation remains active, with the FBI and the Pima County Sheriff’s Department continuing to pursue the case jointly. No arrests have been made and no suspect has been publicly identified. Authorities have reviewed hundreds of hours of surveillance footage, including video showing a masked individual outside Guthrie’s home on the night she disappeared, though investigators have not publicly identified that person or confirmed whether they were involved in the abduction.
A combined reward remains available for information leading to Guthrie’s location or the identification of those responsible, including a $1 million reward from the family and a separate $100,000 reward from the FBI. Investigators have pursued numerous leads throughout the case, including a volunteer search near Nogales, Mexico, prompted by an anonymous tip. Mexican authorities later said they found no evidence Guthrie had crossed into Sonora, and the Pima County Sheriff’s Department said it had not coordinated that particular search effort.
In June, deputies arrested Alexander Zabel Jr., 54, outside Guthrie’s home following repeated complaints about his behavior in the area. Authorities have not publicly linked Zabel to Guthrie’s disappearance.
The sheriff’s office continues asking the public to review the released ransom notes for any details that might help identify their author. While investigators regard the notes as significant pieces of evidence, they have not confirmed whether the person or people who wrote them were directly involved in Guthrie’s abduction, leaving open the possibility that the messages could have come from someone unconnected to the actual crime.
Anyone with information related to the case is urged to contact 911, the FBI at 1-800-CALL-FBI, or the Pima County Sheriff’s Department directly at 520-351-4900. Authorities have emphasized that the investigation remains ongoing and that no aspect of Guthrie’s fate, including the claims made in the second ransom note, has been independently confirmed as of the most recent public updates on the case.
In the late afternoon session, the scrip was being traded at 20.61 pounds, down by 5.50 per cent on the LSE. Vedanta opened on a positive note, but soon swung into the red.
The broader market was also weak and the benchmark FTSE 100 was trading at 5,248.95, down 0.32 per cent in the late afternoon session.
On the other hand, Cairn Energy Plc climbed 1.41 per cent and was being quoted at 4.59 pounds on the LSE.
In India too, Vedanta Group firm Sterlite Industries sank by over 4 per cent to close at Rs 160.70 on the Bombay Stock Exchange. Sterlite was the biggest loser in the Sensex pack today.
In contrast, Cairn Energy Plc’s Indian arm, Cairn India, surged by over 5 per cent to hit its highest-ever level of Rs 358 on the BSE. The scrip ended with a gain of 355.45, up 4.36 per cent.
Vedanta Resources Plc is in talks to acquire a majority 51 per cent stake in Cairn India for about USD 8-8.5 billion (nearly Rs 40,000 crore) and a deal may be announced on Sunday evening or Monday.Scottish explorer Cairn Energy Plc, which holds a 62.37 per cent stake in India-listed Cairn India, is seeking up to a 20 per cent premium for passing on the controlling stake, two persons in-the-know of the development said.
Agarwal “is meeting Cairn Energy Plc Chief Executive Bill Gammell in London today and the deal is likely to be announced as early as Sunday evening or on Monday,” one of them said.
The deal will be contingent on government approval, as Cairn’s three producing oil and gas assets, including the giant Rajasthan fields, and seven exploration blocks either have explicit provisions for seeking prior approval before the transfer of interest or gives pre-emption, or the right of first refusal, on any shares being sold to partners like ONGC.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, AVGO, SNDK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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Wall Street’s major market averages drifted lower on Friday despite a rally from Amazon’s strong quarterly results. Shares of Amazon (AMZN) are +13.3% after the e-commerce giant reported second-quarter revenue of $200.6B, topping analysts’ estimates of $197B, driven by strong growth in its North America business.
The coming week will see a slew of economic data releases, beginning with S&P Global manufacturing PMI data for July, ISM manufacturing PMI, and prices for July on Monday. JOLTS job openings data will be released on Tuesday, followed by S&P Global services PMI, ISM non-manufacturing PMI, and ISM non-manufacturing prices for July on Wednesday. Initial jobless claims data is due on Thursday, while nonfarm payrolls and the unemployment rate for July will be out on Friday.
SpaceX (SPCX) will report its first earnings as a public company next week. Other companies reporting during the week are AMD (AMD), Merck (MRK), Pfizer (PFE), and Eli Lilly (LLY).
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Earnings spotlight: Monday: Berkshire Hathaway (BRK.A) (BRK.B), Palantir (PLTR), Snap (SNAP). See the full earnings calendar.
Earnings spotlight: Tuesday: SpaceX (SPCX), AMD, Merck, Pfizer. See the full earnings calendar.
Earnings spotlight: Wednesday: Eli Lilly, Novo Nordisk (NVO), Uber (UBER). See the full earnings calendar.
Earnings spotlight: Thursday: ConocoPhillips (COP), Airbnb (ABNB). See the full earnings calendar.
Earnings spotlight: Friday: Take-Two Interactive Software (TTWO), Oklo (OKLO). See the full earnings calendar.
Volatility watch: Sandisk (SNDK) and Amylyx Pharmaceuticals (AMLX) have seen options volatility increase over the last week. The most overbought stocks per their 14-day relative strength index
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