McDonald's Slumps Under Pressure from Affordability Concerns
McDonald's Corporation (MCD) is one of the world's leading global foodservice retailers, with a market cap of $187.5 billion and over 44,000 locations across more than 100 countries.
About 95% of its restaurants are owned and operated by independent local business owners, giving McDonald's a highly franchised global business model.
Shares of the fast food giant have pulled back 22.7% from their 52-week high of $341.75, with a decline of nearly 5% over the past three months, lagging behind the S&P 500 Index's ($SPX) nearly 2% rise over the same time frame.
The stock is down 13.2% on a YTD basis, underperforming SPX's 12.7% increase.
McDonald's has underperformed as affordability pressures weigh on its lower-income customer base, while weak execution of value promotions has failed to drive enough traffic.