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McDonald's New Value Menu Doesn't Add Up

Published 2018-03-09, 08:39 a/m
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Investing.com - McDonalds new $1,$2,$3 value menu is delivering the wrong numbers for some analysts.
For the second time in a week, a Wall Street firm has lowered its stock price target on the fast food giant because of a slow sales start to the reshaped menu launched in January.
Credit Suisse (SIX:CSGN) lowered its target from $191 to $175.
When RBC Capital Markets adjusted its target from $190 to $170 last week, McDonald's (NYSE:MCD) shares tanked, posting their worst one-day loss in history.
Credit Suisse said it has spoken with Macdonald's franchisees, who said sales had slowed.
RBC said the new menu had yet to resonate with cost-conscious customers.
Both firms, however, kept their outperform ratings on the stock, saying the new menu will eventually produce higher sales.
McDonald's shares are down more than 10% this year, while the S&P 500 is flat.

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