McDonald's Stock Slumps on Eight-Week Losing Streak Amid Concerns Over Next Plan
McDonald's stock has been on a slide for eight consecutive weeks, its longest losing streak since the dot-com bust. The company's shares have dropped almost 24% this year and were trading at around $232 on Thursday morning.
The decline can be attributed to CEO Chris Kempczinski's cautious outlook and weak U.S. same-store sales. Additionally, concerns over the recently revealed NEXT plan have raised doubts about its effectiveness in spurring growth without straining short-term cash flow.
McDonald's plans to invest $8.5 billion through 2036 to help franchisees, but this large upfront investment has led investors to question when the financial benefits will materialize. The company's projected profit objectives extend until 2030, leaving investors with a challenging trade-off between investing in the restaurant network and waiting for potential returns.