Why McDonald's stock is at nearly 2-year lows

McDonald's (MCD) banal terms is McSliding.

Quick insight: McDonald's stock terms is present hovering astir two-year lows, according to Yahoo Finance AlphaSpace data. At a guardant P/E aggregate of astir 20.7 times, the Golden Arches' banal trades connected the lowest aggregate successful much than a decade.

McDonald's banal is down 13.3% successful 2026, underperforming the S&P 500's (^GSPC) 10.6% advance.

The why: At archetypal blush, McDonald's banal terms shouldn't beryllium trading astatine these levels fixed its latest paper push. 

Following the highly publicized motorboat of the Big Arch, the institution launched six caller drinks connected May 6, with refreshers similar Strawberry Watermelon and crafted sodas similar Sprite Berry Blast. All the drinks are caffeinated and aimed astatine Gen Z consumers who person been going to the nearest Dutch Bros (BROS) oregon convenience store for a Celsius (CELH). 

But whether it's these items falling flat, consumers balking astatine precocious accelerated nutrient prices, oregon the dispersed of GLP-1s, McDonald's isn't delivering connected the numbers.

"Data suggest McDonald's was incapable to powerfulness done manufacture challenges successful 2Q, and we are modeling US same-store income down 2%/reaching a multi-year debased successful comparative show vs the accelerated nutrient benchmark," Citi expert Jon Tower said successful a caller note. 

"With beverages connected the horizon, we deliberation this tin beryllium the low-water people for some same-store income and the aggregate earlier a September capitalist lawsuit gives McDonald's the accidental to marque the lawsuit for plus investments/a faster gait of paper innovation/beverages arsenic multi-year income drivers," helium added.

Tower noted that McDonald's US ft postulation fell by 4.6% twelvemonth implicit twelvemonth successful the 2nd quarter, with May being the worst month.

The bottommost line: At this point, McDonald's is simply a show-me banal — and the institution has to amusement investors a batch erstwhile it reports connected Aug. 4.

Brian Sozzi is Yahoo Finance's Executive Editor, big of the Power Players with Brian Sozzi podcast, and a subordinate of Yahoo Finance's editorial enactment team. Follow Sozzi connected X @BrianSozzi, Instagram, and LinkedIn. Tips connected stories? Email [email protected].

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