McDonald's Shares Plummet as $8.5 Billion Support Plan Sparks Industry Concerns

McDonald's shares tumbled to their lowest level in nearly four years after the fast-food giant unveiled an $8.5 billion franchisee support plan and warned that industry traffic could remain flat while inflation stays elevated.

The stock dropped as much as 6.5% during the session, with trading activity unusually heavy at over 13.8 million shares changing hands, nearly three times the 20-day average.

The support plan includes approximately $8.5 billion in investments through 2036, including around $5 billion through 2030, to be provided through a combination of rent relief and capital support as part of McDonald's NEXT strategy.