McDonald's Has Fallen More Than 30% From Its Peak Before. Here's What History Says Happens Next.
McDonald's has crashed and come back stronger twice before. Here's what's different and the same about its current slump.
Overview
McDonald's (NYSE: MCD) shares are down roughly 32% from the $341.75 all-time high they hit in February, recently trading near $232, close to a four-year low. That's a steep drop for a company this size, but it isn't the first time McDonald's stock has fallen this hard. It's happened twice before, and both times, the stock eventually came back stronger than it went in.
Image source: Getty Images.
In early 2003, McDonald's posted its first quarterly loss since going public in 1965, and the stock had fallen 70% from its 1999 peak, hitting an all-time low near $12, according to NPR. The cause was years of overexpansion and inconsistent restaurant quality -- growth for growth's sake rather than a focus on the customer experience.
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Originally published at www.fool.com.