McDonald's Slumps as Revenue Growth Hits 15-Year Low

The article discusses the real value of McDonald's (NYSE:MCD) stock. The author, who has a beneficial long position in MCD shares, highlights that despite its reputation as a dividend-paying stalwart, the company's fundamentals have been under pressure due to increased competition and changing consumer preferences.

The author notes that McDonald's revenue growth has slowed down significantly over the past few years, with sales declining by 15% on a two-year compound annual growth rate (CAGR) basis. This is a stark contrast to its historical performance, where it grew at an average of 5-6% per year.

The author attributes this decline to increased competition from fast-casual chains and changing consumer preferences towards healthier options. Additionally, the company's efforts to revamp its menu and improve customer experience have been met with mixed results.