- Consumer Edge data shows Chick-fil-A gained 0.58 percentage points of limited-service restaurant spending among McDonald's customers in Q3 versus a year earlier, the largest gain among tracked chains.
- Four coffee chains, including Starbucks, Dutch Bros. and Dunkin', 7 Brew, together added 0.88 percentage points of spending share from McDonald's customers.
- McDonald's targets an additional 1.5 percentage points of global market share in both chicken and beverages by 2030, set at its September investor day.
- Bernstein analyst Danilo Gargiulo has a market perform rating and a $295 price target on McDonald's, with shares closing near $235 on the prior Friday.
- Gargiulo said U.S. beverage launches have not generated enough sales to offset broader weakness and the next chicken platform is further away than expected.
- McDonald's said U.S. comparable sales were slightly negative in July and August and it expected September to turn positive; Consumer Edge showed spending share declines narrowing across every income group in September.
Quotes
“The scale of investment required to deliver [the company's growth plan] McDonald's Next was above our expectations and introduces additional pressure on near-term earnings”
“There’s a big battle for a smaller amount of restaurant spend as people become more selective in what they spend”