The shares of The Carlyle Group Inc. (NASDAQ: CG) exhibited an upward trajectory on Monday, experiencing a noteworthy 6.06% surge in the after-market session, reaching $34.81. This surge followed a 0.77% increase in Carlyle Group stock during the regular session, concluding at $32.82. The impetus behind the CG stock’s ascent lies in its imminent inclusion in a distinguished index category.
As of the commencement of trading on Thursday, November 30, The Carlyle Group will added to S&P MidCap 400 and replace ICU Medical on S&P Dow Jones Indices, marking a significant shift in its market presence. Recently, Carlyle Group reached an agreement with McDonald’s Corporation to divest its minority ownership in China.
McDonald’s will acquire CG’s stake in the strategic partnership overseeing McDonald’s operations in mainland China, Hong Kong, and Macau. The CITIC Consortium, particularly through CITIC Capital, will maintain its controlling ownership, with the consortium’s ownership staying at 52% post-transaction. McDonald’s, while remaining a minority partner, will enhance its ownership from 20% to 48%.
The strategic collaboration between CITIC and CG has proven highly successful in expanding McDonald’s footprint in the region, transforming China into its second-largest market with a restaurant count exceeding 5,500 since 2017. McDonald’s decision to streamline its structure through this agreement is driven by the immense opportunity to meet rising demand and capitalize on the long-term potential of its fastest-growing market.
The business has demonstrated robust Systemwide sales growth of over 30% in the market year-to-date since September 2019. Moving forward, the partners will sustain their collaboration, aligned with the brand’s Accelerating the Arches growth strategy, focusing on developing and opening new restaurants and cultivating stronger connections with customers.
Collaborating with CITIC, Carlyle Group has played a pivotal role in reshaping the business, propelling its growth trajectory, and revolutionizing its digital marketing and operational capabilities.
