The article attributes the stock’s near-2-year drawdown to deteriorating demand/foot traffic and analyst expectations for continued pressure, highlighting the next reported catalyst (Aug. 4) as a key “show-me” point.
Why McDonald's stock is at nearly 2-year lows Brian Sozzi · Executive Editor Thu, July 16, 2026 at 4:54 PM GMT+2 2 min read MCD ^GSPC BROS CELH McDonald's ( MCD ) stock price is McSliding. Quick insight: McDonald's share price is now hovering around two-year lows, according to Yahoo Finance AlphaSpace data. At a forward P/E multiple of about 20.
7 times, the Golden Arches' stock trades on the lowest multiple in more than a decade. McDonald's stock is down 13. 3% in 2026, underperforming the S&P 500's ( ^GSPC ) 10.
6% advance. The why: At first blush, McDonald's stock price shouldn't be trading at these levels given its latest menu push. Following the highly publicized launch of the Big Arch , the company launched six new drinks on May 6, with refreshers like Strawberry Watermelon and crafted sodas like Sprite Berry Blast.
All the drinks are caffeinated and aimed at Gen Z consumers who have been going to the nearest Dutch Bros ( BROS ) or convenience store for a Celsius ( CELH ). But whether it's these items falling flat, consumers balking at high fast food prices, or the spread of GLP-1s, McDonald's isn't delivering on the numbers. "Data suggest McDonald's was unable to power through industry challenges in 2Q, and we are modeling US same-store sales down 2%/reaching a multi-year low in relative performance vs the fast food benchmark," Citi analyst Jon Tower said in a new note.
"With beverages on the horizon, we think this can be the low-water mark for both same-store sales and the multiple before a September investor event gives McDonald's the opportunity to make the case for asset investments/a faster pace of menu innovation/beverages as multi-year sales drivers," he added. Tower noted that McDonald's US foot traffic fell by 4. 6% year over year in the second quarter, with May being the worst month.
The bottom line: At this point, McDonald's is a show-me stock — and the company has to show investors a lot when it reports on Aug. 4. Brian Sozzi is Yahoo Finance's Executive Editor, host of the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance's editorial leadership team.
Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email brian.
sozzi@yahoofinance. com.
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