McDonald's CEO Chris Kempczinski told investors the company has no strategy problem but simply did not execute at the level needed in the second quarter, as the stock closed at $248.51, down 1.69% on the session and 17.1% lower year to date at a two-year low. U.S. comparable sales grew just 0.8% in the second quarter and U.S. guest counts turned negative, while global comps decelerated to 1.3% from 3.8% a year earlier. Kempczinski said execution issues explain only about two-thirds of the traffic miss, with the rest tied to a lower-income customer base squeezed in what trader Guy Adami called the K-shape economy, where some consumers struggle while others do very well. McDonald's launched an under-$3 everyday affordable price menu and a $4 breakfast meal deal, yet SG&A still jumped 17%, and the 10-year Treasury yield hit 5.00% on September 15, undercutting the appeal of the stock's 2.91% dividend. Fiscal 2027 EPS has drawn 26 downward analyst revisions against 3 upward in the trailing 30 days, moving the average from $14.22 to $13.98, while the company earns a 46.1% operating margin and a 31.9% net margin and opened 1,915 net restaurants over the past year.
McDonald’s CorporationSG&A jumped 17% and fiscal 2027 EPS drew 26 downward analyst revisions versus 3 upward, moving the average from $14.22 to $13.98.
