Stocks
McDonald's Stock Hits Lowest Level Since 2022 Amid Flat Traffic Concerns
McDonald's stock has fallen to its lowest level since 2022 after the company's investor day, dropping more than 5% in value.
In a cautious tone, CEO Chris Kempczinski warned that high inflation and flat traffic will continue to weigh on the restaurant industry, making it necessary for McDonald's to win customers from rivals to grow.
The U.S. business is already under pressure, with same-store sales growing just 0.8% last quarter as fewer people visited, and management expects U.S. sales to be slightly negative in Q3.
To turn things around, McDonald's has unveiled a plan called NEXT, which includes major upgrades to menu taste and quality, AI tools in restaurants, and restaurant efficiency gains of about 250 basis points by 2030.