BUZZ - McDonald's stock falls as CEO warns of sluggish traffic growth and announces an $8.5 billion franchisee plan

September 23 - ** Burger giant McDonald's MCD.N shares dropped 4.3% to $239.7

** McDonald's (MCD) (link) announced an $8.5 billion franchisee support plan as part of its expanded growth strategy

** “With inflation remaining elevated, we expect customer traffic in our company-operated markets to be flat,” the CEO warned at the Investor Day meeting

** These new targets and the ten-year franchisee support plan are part of its “NEXT” strategy, aimed at reviving sales momentum—after the company's U.S. sales growth in the second quarter fell short of expectations

** McDonald's (MCD) aims to boost its operating profit margin to the low to mid-50% range by 2030, up from 46.9% in fiscal 2025

** Out of 38 brokerages, 22 rate the stock as “buy” or higher, 15 rate it as “hold,” and 1 rates it as “sell;” the median target price is $306.50—data compiled by LSEG

** Including the day's movement, the stock is down 22% year-to-date

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