McDonald's Shares Tumble on $8.5 Billion Support Plan and Warning of Flat Traffic

McDonald's shares plummeted on September 24th after the fast-food giant announced an $8.5 billion support plan for its franchisees and warned of flat industry traffic due to high inflation.

The stock dropped as much as 6.5% during trading, reaching a nearly four-year low of $234.03, before closing at $238.32, down 4.81%. The unusually heavy trading activity saw over 13.8 million shares changing hands, more than three times the 20-day average.

The support plan includes around $5 billion for franchisees through 2030 and will be used to upgrade restaurant technology and modernize locations. However, investors are concerned about the timing of this investment, as the benefits from these upgrades may take several years to materialize.