McDonald’s shares plunge, competition gets tougher


McDonald’s shares plunge as competition gets tougher

The third quarter shares of McDonald’s went below expectations, indicating the food chain competition is getting tougher, especially that plant-based restaurants came booming.

On Tuesday, McDonald’s shares plunged by 5%. The company’s reported sales grew by 4.8% in the third quarter. However, it hit below Wall Street expectation at 5.2%.

Sales growth was down from 5.7% in the second quarter, but higher from the same timeframe in 2018.

In the international market, McDonald’s posted 5.9% sales growth at stores open at least 13 months. The revenue for the quarter went up to $5.43 billion, posting a 1% increase from last year, while net income fell 2%.

McDonald’s is considering plant-based options for its menu, but will only be available in its international locations. The company has also yet to test a meat alternative in the U.S.

“We’re interested in this, clearly,” There are a number of important factors we are learning quickly,” CEO Easterbook said.

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