McDonald’s Unveils 10-Year Growth Plan to Drive Market Share Gains and Efficiency. Should Investors Be Concerned About the $8.5 Billion Price Tag?
McDonald's announced a bold new turnaround plan, but investors don't like the price tag.
Overview
Burger King is resurgent, and McDonald's (NYSE:MCD)is feeling the heat. With shares of the Golden Arches near a four-year low, the fast-food giant introduced a bold new turnaround plan that management hopes will accelerate same-store sales growth and reestablish the company as the clear #1 in its industry.
However, at first glance, investors didn't like what they saw. The stock closed down 4.8% on Wednesday, as the market seemed to balk at its plan to spend $8.5 billion over the next decade as part of NEXT, what the company is calling its turnaround plan, which it announced at Wednesday's Investor Day. Management also gave a disappointing update on the third quarter, saying that U.S. comparable sales would be slightly negative.
Image source: McDonald's.
Details
Source
Originally published at www.fool.com.