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 [email protected].
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