Mcdonald's Reportedly Plans To Fully Adjust Its Discount Strategy To Revive Sales Growth In The United States!

In an internal message sent to operators, McDonald's stated that it will develop a more long-term plan for value-focused consumers in the coming weeks. Meanwhile, McDonald's is preparing a short-term plan that includes limited-time specials and digital promotions based on popular items. Currently, its app offers a $2 breakfast sandwich and offers free fries with a minimum purchase of $1.

This strategic adjustment, accompanied by changes to the franchisee training and support system, is the first major move since the new head of U.S. operations took office, and it is also launched on the eve of the company's investor day event next week. After the announcement, McDonald's stock price briefly rose but then gave back gains, with the stock having fallen about 17% so far this year. Last quarter, sales at McDonald's existing U.S. stores grew only 0.8%, the weakest performance since early 2025. The stock has fallen nearly 20% year-to-date, putting significant pressure on management.

In 2024, McDonald's launched a $5 package to address concerns about high pricing, benefiting from it. Earlier this year, McDonald's further expanded its offers, launching at least 10 products priced below $3. However, the CEO said during the August 4 earnings call that many franchisees did not follow the company's pricing recommendations, which dragged down performance. Additionally, the company cut app-exclusive deals and ended the buy-one-get-one-free promotion, which cost only $1.

Seaport Global Securities launched its research coverage of McDonald's with a neutral rating, citing challenges at the execution level and a bleak overall operating environment. Seaport stated that McDonald's failed to seize the opportunity to leverage its competitive advantages in 2026, and actual execution performance fell short of expectations. The agency also pointed out that McDonald's scale advantage and market influence in the fast-food industry remain unmatched.

However, McDonald's and its franchisees remain in a tough operating environment, mainly reflected in rising interest rates, pressure on low- and middle-income consumers, high beef costs, and increasing competitive pressure. Meanwhile, against the backdrop of limited cash flow for franchisees, the company is planning to launch a new round of capital expenditure cycles.

Market Insight:

McDonald's has the right strategic direction and execution tools and is expected to gradually regain growth momentum, but based on year-on-year comparisons, substantial improvement is not expected to appear until mid-2027. Currently, the stock is trading at a P/E ratio of 18 times its 2027 earnings per share, which is six times lower than its five-year average P/E of 24 times over the next twelve months.