McDonald's Slumps on Inflation Fears and Turnaround Woes

McDonald's shares plummeted by as much as 6.5% on Wednesday as the company warned that weak customer traffic across its major markets could persist due to elevated inflation.

The warning came as McDonald's unveiled an $8.5 billion decade-long support package for franchisees, which includes a roadmap for its 'NEXT' strategy aimed at restoring sales growth by improving value, food quality, restaurant operations, and customer experience.

Chief Executive Chris Kempczinski emphasized that industry traffic growth in wholly-owned markets is expected to be flat while inflation remains elevated. He stated, 'The winners will be the companies that create more demand and deliver it more efficiently.'