McDonald's Investor Day Lifts Stock Amid New Growth Strategy Unveiling
McDonald's held its first investor day in three years on September 22, and as a result, the company's stock rose by about 2%. The event aimed to share details of McDonald's new growth strategy, dubbed 'McDonald's > NEXT', which includes a revamped menu and restaurant innovations. This comes after the company struggled with declining sales due to higher prices and an economic slump.
The burger chain has been working on its global growth plan since June, when it unveiled 'McDonald's > NEXT'. The strategy includes new restaurant designs, menu revamps, and various innovations. At the investor day, McDonald's is expected to provide further details about these changes, including updates to its value menu.
The company has been trying to win back customers after its U.S. business disappointed in the most recent quarter, with same-store sales rising only 0.8% and foot traffic at its restaurants dropping. McDonald's stock is trading near a 52-week low of $246.52 per share, down 18% this year and flat over the past five years.
As part of its investor day presentation, McDonald's is likely to focus on changes to its value menu, announce new chicken options that have been popular with consumers, and reveal plans for remodeling its restaurants with new equipment. With a consensus Moderate Buy rating among 24 Wall Street analysts and an average price target of $317.18 implying 24% upside from current levels, investors are keeping a close eye on the company's progress.