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.