The hamburger is no longer enough: McDonald's stock at a five-year low

McDonald's stock has plunged more than 30% from its March peak and lost a quarter of its value since the start of the year, against a backdrop of weak US sales, rising raw material costs and growing competition. Promotions and product launches have failed to bring customers back, and an $8.5 billion investment plan has not calmed investors.

McDonald's stock is at a five-year low, having lost more than 30% of its value since its March 2026 peak and nearly a quarter of its value since the start of the year. The declines reflect persistent weakness in US sales, the chain's most important market, against the backdrop of a cost of living that is eroding consumers' purchasing power. Summer sales rose by only 0.8%, with the increase stemming from higher spending per customer rather than growth in the volume of purchases. The company's attempts to counter the trend with value menus and promotions have not produced a significant improvement, and the launch of new chicken products has also failed to provide a boost. At the same time, competition in the sector is intensifying, with Burger King showing faster sales growth. Raw material costs, mainly beef, weigh on the ability to offer low prices without hurting profit margins. A $8.5 billion investment plan over a decade, meant to upgrade restaurants and improve the customer experience, was received negatively by the market due to concern over the financial outlay in the near term. The next test will be the publication of quarterly results on November 4.