One of the world-renowned fast food and burger joint, McDonald, have seen one of the worst day they have after analysts cuts sales forecasts. The company’s menu hasn’t been appealing to the market that’s why a massive deficit on their market performance was observed today.
McDonald’s New Menu
Reports revealed that McDonald's’ all-new $1, $2, and the $3 menu where weaker than what was expected. The new menu resulted in a massive shutdown of the company’s United States’ same-store sales expectations.
The revamped menu has been seen as a massive flunk despite the enormous choices and early sales showed disappointing results. Reports revealed that the menu is lackluster and holds no standing and lasting item to be excited about.
Furthermore, the current state of the market and the whole industry of fast food and burger chain is also in shambles. The deteriorating industry figures and performance have also helped weighed McDonald down to one of its worst single-day slumps.
Downgraded US SSS
An analyst wrote that the disappointing early sales from their new menu have already cemented their thoughts for the company. Most of the general consensuses were pointing to a massive lowered price target for the company.
Reports revealed that the current US SSS is tallied to be at a flat 1%, a hefty downgrade from the previous 3.5%. The company’s 2018 earnings-per-share forecasts were also hit, dropping to the $7.43, as opposed to the latter which was at $7.60
The company’s price target shares were also adjusted to $170 from the previous $190. The massive changes from the analysts have beaten McDonald's to a pulp, pulling its stock down to a total of 13.8% this year alone.
Reports revealed that the market has overreacted to the reports and are just swayed by what the majority of analysts are saying, but a good half of the market is pointing that the company has been slumping with its market performance in the past months.
McDonald Market Performance
Just last Friday, the company was down by a massive 5% right after the adjusted figures were reported. Currently, McDonald's is regarded as the worst performing stock on the Dow Jones Industrial Average, is just behind the recently surging General Electric.
It has been well established that the General Electric is the worst performing stock in almost a decade, but today, the tides might have turn and McDonalds is now weighted down to its level despite having a massive market presence in the past years.
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