From New York Post · · 1m 20s
McDonald's Shares Fall as CEO Cites Weak Growth
McDonald's shares drop 5% after CEO says industry growth will be flat amid rising inflation.
In brief
McDonald's shares drop 5% after CEO says industry growth will be flat amid rising inflation. McDonald's shares fell 5% during investor day as CEO Chris Kempczinski revealed flat customer traffic growth in key markets despite accelerating inflation. Originally reported by New York Post.
McDonald's Shares Drop
McDonald’s shares dropped almost 5% during its investor day presentation after CEO Chris Kempczinski said industry customer traffic growth in key markets will be flat while inflation continues to accelerate.
New $8.5 Billion Investment Plan
The burger giant outlined key details of a multi-year $8.5 billion investment to revamp its restaurants, make its menu tastier and upgrade technology, including an AI program called ArchIQ.
CEO's Market Share Goal
Kempczinski said, 'We must be the first choice for more customers more often,' to capture marketshare.
“We must be the first choice for more customers more often”
Shares Down 22% This Year
The company’s shares have fallen 22% so far this year.
NEXT Strategy for Low-Income Customers
The new program called NEXT comes on the heels of an effort to win back low-income customers who have pulled back on their visits to McDonalds as their costs have risen due to inflation.
2027 Sales Growth Target
The burger chain expects restaurant expansion to contribute about 2.5% of systemwide sales growth in 2027 and around 2% by 2030.
The key point
McDonald's shares fell 5% during investor day as CEO Chris Kempczinski revealed flat customer traffic growth in key markets despite accelerating inflation.
