McDonald's stock recovers: Is the rise in the stock backed by data?
McDonald's stock has risen more than 15% in the past month following third-quarter earnings, but an analysis from Seeking Alpha points to a gap between the stock's rise and weakness in U.S. same-store sales, which fell 0.2%, along with a decline in customer traffic.
McDonald's stock has risen more than 15% in the past month following the release of third-quarter earnings, but an analysis published on Seeking Alpha suggests the recovery is not yet fully backed by the company's data. Adjusted earnings per share rose 11% and operating profit grew 7%, but weakness was recorded in the U.S. market: same-store sales fell 0.2%. The main issue is a gap between the average transaction amount, which increased, and a decline in the number of visits. Meanwhile, the NEXT expansion plan, aimed at growing the chain to 50,000 restaurants, raises questions about its contribution to shareholders, as much of the benefit is expected to go to franchisees. The article does not include investment advice.
McDonald's stock recovers: Is the rise in the stock backed by data?