image credit: Pixabay

McDonald’s slides after JP Morgan analyst says chain’s earnings seem ‘softer’ than expected

October 1, 2019


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.

Read More on CNBC