McDonald’s At Four-Year Lows Isn’t As Worrisome As Some Fear
McDonald's (MCD) hit four-year lows last week, down 22% on the year and 31% from its March high, marking a seventh straight weekly loss, its worst streak since 2014. Many investors look at a stock like MCD as a verdict on the American consumer. While its sales can be telling, internal issues are driving the bulk of the underperformance, not the macroeconomic environment. McDonald's raised prices until the brand stopped being "cheap." It is now paying to win that "cheap" reputation back through $5 value meals and other reduced or restrained pricing. Management claims the pricing has left the…
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