McDonald's is reporting third-quarter earnings on Wednesday morning
Wall Street expects same-store sales dropped 0.5 percent.
The short version
- The fast-food chain struggled with uneven value offers.
- Shares have fallen 11 percent over the past year.
Why it matters to you. For your business, a slowdown in big restaurant chains often signals cautious shoppers counting every dollar at the register.
McDonald's, the world's biggest fast-food chain, is set to report its third-quarter earnings before the bell on Wednesday. Wall Street analysts surveyed by LSEG are anticipating an even worse period for the company's home market, with same-store sales expected to decline 0.5 percent according to StreetAccount estimates.
Last quarter, McDonald's Chief Executive Officer Chris Kempczinski said the U.S. business fell short, hurt by uneven execution of value offers and complicated new menu items. In response to the slump, the company tapped Skye Anderson as its new U.S. president to turn things around.
Investors will also listen closely to executive commentary about the fourth quarter so far, especially after Chipotle Mexican Grill, the fast-casual Mexican restaurant chain, reported that restaurant industry traffic softened in October. Shares of McDonald's have fallen about 11 percent over the last year, weighed down by investor concerns about the U.S. business, expensive plans to upgrade restaurants, and the broader economy.
The giant burger chain currently holds a market capitalization of roughly $186 billion. At least the value menu is getting another look.
