McDonald's Shares Plummet Amid Inflation Fears
McDonald's Corp., owner of the iconic fast-food chain McDonald's, faces ongoing challenges from persistent inflation and stagnant customer traffic. This forecast was shared by Chris Kempczinski, CEO of McDonald's, during an interview on CNBC's 'Squawk on the Street.'
Kempczinski stated that these issues will continue to affect the restaurant industry, saying 'We're not expecting things to change.' This outlook is concerning for investors, as McDonald's shares have hit a four-year low. The stock closed at $237.43 and is currently trading 9.99% below its 50-day SMA of $263.79 and 18.85% below its 200-day SMA of $292.57.
The company's $8.5 billion franchisee support plan, unveiled during the investor day, failed to reassure investors. Several analysts have adjusted their price targets downward in response, with UBS, Citigroup, and Morgan Stanley lowering theirs. Seaport Global initiated coverage at Neutral, indicating that significant improvement is unlikely before mid-2027.