McDonald’s shares slid more 2% on Tuesday after an analyst at J.P. Morgan raised concern about the fast-food chain’s third-quarter results.
Analyst John Ivankoe lowered his estimate for same-store sales growth — a key metric for restaurants — to 5% from 6% and trimmed his full-year earnings expectations. He said conversations with McDonald’s management along with his team’s checks “suggest 3Q trending softer than we thought.”
Ivankoe pointed to “less value attention” around McDonald’s’ buy-one-get-one for $1 relative to last year’s 2-for-$5 deal and the chain’s “uninteresting” Spicy BBQ chicken sandwiches that were released in the middle of the quarter as some of the reasons for the lowered estimate.
