Below is a complimentary Consumables Pro research note written by Hedgeye Consumables analysts Howard Penney and Nick Balch. Click here to learn more and subscribe.


Industry Traffic | What's Wrong With McDonald's $MCD? - mcdonalds

McDonald's (MCD) weekly traffic trends have significantly decelerated since the beginning of August.

McDonald's stock tends to be a favorite in times of concern for the restaurant industry, like rising gas prices and student loan payments. The current bull case for McDonald's is due to a "best" burger innovation, digital initiatives, and value offerings. None of this is helping short-term traffic trends, which are collapsing.

We have concerns about the company's aggressive pricing over the past few years.

Industry Traffic | What's Wrong With McDonald's $MCD? - 2023 09 20 7 53 48

We talked more about McDonald's troubling trends on The Call @ Hedgeye today and on Aug. 31.

"Restaurant sales are collapsing," Howard Penney told Keith McCullough this morning. "Traffic is down -7% in Sept. vs. -3.3% in Aug. Rise in oil prices, student loan payments ... Whatever excuse you want to make, it's slowing. McDonald's went from flat traffic the first week of August to -7% this week. There are clearly some issues."

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