McDonald's Value Push Hits Speed Bump Amid Inflation and Slowing Sales

McDonald's is revamping its U.S. value strategy in response to weak sales momentum and inflationary pressures on lower-income diners.

The company posted a 0.8% comparable sales growth in Q2, the slowest in over a year, with its consumer value perception dropping from 55% in 2020 to 40% in 2024.

McDonald's shares are trading at $248.50, down from nearly 25 times forward earnings five years ago to its current multiple of 19.2, the lowest in a decade.

The company is revising its value strategy with temporary menu items, national digital promotions, and personalized offers for loyalty members.