McDonald's Struggles with Value Message Amid Weak Sales Growth

McDonald's posted disappointing U.S. same-store sales growth of just 0.8% in its second quarter, well below rival Burger King's 8.5% increase.

The company attributed the shortfall to its own execution and said it would take time to get the value message aligned with consumer preferences.

McDonald's shares trade near two-year lows at about 20.5 times forward earnings, below their five-year average.

The company's franchise model delivers steady cash flow through rent payments from its operators, but this structure can slow systemwide changes and limit the effectiveness of new menu items and promotions.