McDonald's Stock Hits Four-Year Lows Amid Franchisee Support Plan

McDonald's stock has slumped to four-year lows after an investor day presentation unveiled an $8.5 billion franchisee support plan that spooked investors. The stock fell 4.8% to $238 on Wednesday, marking the company's seventh consecutive weekly loss.

The slide was accelerated by the announcement of a new media advertising network, which some saw as a threat to existing franchisees. McDonald's is building its own media advertising network, with pilot ads already running on digital drive-thru screens across 450 U.S. corporate-owned restaurants.

Despite this ambitious plan, options volume for McDonald's hit record highs, but most of that volume was due to existing positions being unwound rather than new bets being placed.