McDonald's Struggles with Execution Amid Slowing Revenue Growth
McDonald's new US chief, Skye Anderson, faces a challenge in reviving the company's fortunes after its share price hit a 52-week low. The stock has shed 12% since January and now trades at €230.50, just 1.1% above its trough of €228.10.
The decline is partly due to execution problems with McDonald's Everyday Affordable Pricing (EDAP) strategy, which was rolled out to between 60-65% of the US system. Zacks analysts attribute two-thirds of the traffic decline to implementation issues rather than a lack of demand.
Anderson took over as president of McDonald's USA on August 4, just as the value proposition is being reworked. The company has not paused its innovation engine, with new menu items and partnerships in the pipeline, including a Red Bull Dragonberry Energizer and Hello Kitty x Godzilla Happy Meal crossover.