How McDonald's lags behind competitors in sales growth

McDonald's (MCD) is experiencing a slowdown in growth, with its same-store sales lagging behind competitors like Burger King. This shift in market dynamics comes as fast-food chains increasingly pivot towards value-focused meal options to attract budget-conscious consumers.

Yahoo Finance's Julie Hyman breaks down the details.

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his post was written by Angel Smith

Video Transcript

Mcdonald's is falling behind Burger King in same store sales growth in the US is coming as the fast food value meal competition heats up with mcdonald's $5 value meal set to take effect on June 25th and Young finances very own.

Julie Hyman joins me now with a closer look, Julie.

Yeah, this helps, explains what's at stake with these sort of new value meal wars, so to speak.

As the mcdonald's for the past few years has pretty consistently been on top in terms of its same store sales.

But now that has changed and we'll see if it's sustainably changed.

But mcdonald's us comps 2.5% last quarter.

That compares with Burger King at 3.8%.

Wendy still lagging here at 0.6%.

But this does help explain why we are seeing this flurry of activity around value meals being introduced.

So next Tuesday, mcdonald's gonna kick off its new marketing campaign around this new meal deal, which is a $5 meal deal.

It's in response to some of its competitors, right?

You're getting a Wendy's $3 breakfast, uh, value meal.

Even Starbucks has now a $6 breakfast, sandwich and coffee, uh meal as well.

Burger King also has been pushing out some value.

So there's that element, but there's also sort of the social media surrounding mcdonald's itself recently.

Of course, there was that social media post that highlighted in eight dollar Big Mac Meal and the companies pushed back against, that said it was an anomaly.

But nonetheless, this all seems to be somewhat connected here.

We'll see what, how consumers react to this latest meal deal.

We'll also see how franchisees react to it because sometimes these types of value meals are not necessarily popular because it threatens the margins for some of these franchisees.

Josh.

So it'll be interesting to see how it all plays out and we'll see if it helps juice, uh, the sales for mcdonald's $5 meal deal.

Viewers wanna know.

What do I get for that?

Here's what you get.

Apparently a mcdole Cheeseburger or a mcchicken sandwich, small french fries, my personal favorite, the four piece chicken nuggets and a small soft drink.

Are you in Julie Hyman?

Are you in?

Does that make sense to you?

Do you want that?

You know, I don't, but I know you do and you will order more than enough for me.

I'm gonna have enough for both of us, Julie Hyman.

Thank you so much.

Appreciate it.