McDonald's falls as CEO warns on weak traffic growth, unveils $8.5 billion franchisee plan

By Reuters News

** Shares of burger giant McDonald's MCD.N fall 4.3% to $239.7

** MCD outlines a $8.5 bln franchisee support plan as part of an expanded growth strategy

** "We expect industry traffic growth in our wholly owned markets will be flat, while inflation remains elevated," CEO cautioned during the investor day conference

** The new goals and decade-long franchisee support plan are part of its "NEXT" strategy to revive sales momentum after weaker-than-expected U.S. sales growth in Q2

** MCD targets operating margins in the low- to mid-50% range by 2030, up from 46.9% in fiscal 2025

** 22 of 38 brokerages rate the stock "buy" or higher, 15 "hold" and one "sell"; median PT is $306.50 - data compiled by LSEG

** Including session's move, stock down 22% YTD

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