McDonald's Revamps Strategy Amid Slowing U.S. Growth

McDonald's (MCD) stock rose 0.7% after reports that the fast-food giant plans to revamp its strategy to combat slowing U.S. growth. However, shares eventually closed flat in the regular session.

The company is building a 'longer-term' value plan aimed at price-sensitive customers, with a 'near-term bridge plan' of temporary menu items and digital promotions until then. The near-term plan includes offers such as a $2 breakfast sandwich and free fries with a $1 minimum purchase.

In the second quarter, U.S. comparable sales rose only 0.8%, down from 3.9% in the first quarter and 2.5% a year earlier. Global comps increased 1.3%. Chief Executive Chris Kempczinski previously attributed the problem to execution, not strategy.

McDonald's is scheduled to outline its 'McDonald's > NEXT' strategy at an Investor Day in Chicago on September 23. The company also pushed its 50,000-restaurant target to 2028 and named Skye Anderson president of McDonald's USA.