Catenaa, Saturday, September 26, 2026- McDonald’s shares are down nearly 31% from their February high and on track for the worst annual return in 24 years.
According to Bloomberg News, the burger chain guided for “slightly negative” US sales for the current quarter during an investor day event earlier this week, while sales last quarter rose just 0.8%, their slowest pace in more than a year.
The slowdown stems from customer dissatisfaction, from menu prices to the loss of in-store experiences such as playgrounds and other popular features.
Earlier this week, McDonald’s announced an $8.5 billion multiyear plan to improve services and food quality, raising concerns about eating into profits and driving investors to sell off shares.
“Their prices have gone up substantially, and it’s no longer viewed as the best value in food,” Jacob Aiken-Phillips of Melius Research told Bloomberg.
Phillips has the lone “sell” rating on the stock among analysts tracked by Bloomberg.
“I could go to Texas Roadhouse instead and have an actual sit-down experience with my family that’s not that much more expensive,” he said.
A Bloomberg report said a McDonald’s spokesperson on Friday reiterated the company’s plans to act urgently to put the US business in a stronger position exiting 2026.
The Economist’s Big Mac Index, typically used to compare purchasing power parity between countries, shows that the price of the sandwich in the US rose by around 23% between 2019 and the end of 2025.
McDonald’s raised menu prices on its menu as costs surged for labor wages, ingredients like beef, and fuel after the pandemic.
Meanwhile, customers were also being squeezed by inflation and rising interest rates, making them more selective about where they spend their dollars, the Bloomberg report said, adding that the dynamic intensified competition within the restaurant industry, with chains vying for customer traffic by dangling limited-time offers and enticing shoppers with aggressive discounts.
However, rivals such as Restaurant Brands International’s Burger King posted US comparable sales growth of 8.5% in the latest quarter, exceeding estimates thanks to a revamped Whopper and Star Wars promotion, and Yum! Brands-owned Taco Bell reported a 7% increase in same-store sales as its $5, $7 and $9 meal boxes drove customer visits.
The companies’ shares are up 5% and down 8.4% year-to-date, respectively, underperforming the S&P 500’s 13% gain. By comparison, McDonald’s shares are down 23% year to date.
