McDonald's Sell-Off Nears 30% as Big Mac Inflation Spurs Pushback

McDonald's Corp. faces a key challenge as it seeks to revive its sagging stock price: winning back cost-conscious diners who believe its menu has become too expensive, Peyton Forte reported for Bloomberg News.

A McDonald's restaurant as the fast-food chain works to address pricing concerns and revive sales.

Shares of the Big Mac maker are down nearly 31% from their February high and are on track for their worst annual return since 2002.

The burger chain guided for "slightly negative" US sales in the current quarter during an investor day event earlier this week, while sales last quarter rose just 0.8%, their slowest pace in more than a year.

Those signals come alongside longstanding complaints from customers about menu prices and an in-store experience that has changed with the removal of playgrounds and other popular features.

Recent value offerings have produced mixed results, while an $8.5 billion multiyear plan to improve service and food quality announced this week has raised concerns that the spending could pressure profits, contributing to a fresh sell-off in the company's shares.