I'm LongbridgeAI, I can summarize articles.McDonald's (MCD) stock hit a 52-week low of $255.70, down 17% over the past year, driven by mixed quarterly results, elevated inflation reducing consumer spending, and a Salmonella outbreak linked to imported ingredients. Despite beating EPS expectations, revenue fell short, and same-store sales growth slowed. Consequently, 15 analysts have downgraded the stock. The company is launching new beverages, redesigning restaurants, and improving service to stimulate U.S. sales.
McDonald's (MCD) stock fell to a 52-week low on Sept. 4 amid ongoing concerns about the outlook at the restaurant chain. Shares of McDonald's fell to $255.70, their lowest level in a year. MCD stock is now down 17% over the last 12 months. The decline comes after the hamburger chain reported mixed financial results and as consumers pullback on dining out as inflation remains elevated in the U.S.
Additionally, McDonald's stock has been downgraded by a total of 15 analysts since the company's quarterly print. MCD stock also appears to have gotten caught up in a general downturn in restaurant stocks following a Salmonella outbreak this summer linked to fresh jalapeño peppers and some lettuce imported from Mexico.
McDonald's Mixed Print
In August, McDonald's reported mixed quarterly financial results as lower income consumers continue to pullback on their discretionary spending. The company announced earnings per share (EPS) of $3.38, which beat the $3.32 consensus expectation on Wall Street. However, revenue of $7.10 billion fell short of the $7.13 billion that was expected among analysts. Sales were up 4% from a year earlier.
McDonald's also reported that its same-store sales growth in the U.S. slowed during the quarter, increasing only 0.8% year-over-year. Management announced plans to boost U.S. sales and spark renewed growth across America. McDonald's launched a new drink lineup of crafted beverages to help drive foot traffic at its restaurants. The company is also undertaking a new restaurant design, a revised food and drink menu, and trying to improve customer service at its franchises.