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McDonald’s is trading at $91.25 and the share price is 7.8% lower since announcing its second-quarter numbers in July which missed traders’ expectations. Revenue came in at $7.18 billion vs $7.28 billion and EPS was $1.4 vs $1.43. Like-for-like sales in the US dropped by 1.5% and Europe registered a 1% decline, whereas Africa, the Middle East and Asia posted a 1.1% rise.
The world’s largest restaurant chain introduced new items to its menu but some customers say it resulted in an over-complication of the ordering process which slowed things down. The fast-food chain has been struggling to gain market share, and CEO Don Thompson stated the focus will be on marketing and low-priced items on the menu.
Equity analysts are moderately bullish on McDonalds. Out of the 33 recommendations, seven are buys, 23 are holds and three are sells.
The share price failed to hit $105 twice in the past two years, and has been in steady decline since May. Weak figures could push the stock to $86, while a positive report could drive the share price to $93.53.