McDonald's Shares Plunge After Unveiling Costly NEXT Strategy

Shares of McDonald's fell 5.1% on September 23, 2026, following an Investor Day presentation at the company's Chicago headquarters. The stock experienced its sharpest intraday decline since the 2020 pandemic selloff, reaching its lowest valuation since 2022. The decline continued into Wednesday with a further 4.8% drop, contributing to a 22% annual loss that has pushed the stock into a bear market.

During the event, management unveiled the NEXT strategy, which includes an $8.5 billion support package for franchisees over the next decade. Despite the plan's intent to reassure long-term shareholders, investors reacted negatively to the high cost of the overhaul and softening U.S. demand. CFO Ian Borden projected that U.S. business would be "slightly negative" in the third quarter, while CEO Chris Kempczinski noted that industry traffic growth in wholly owned markets would remain flat due to elevated inflation.

Internal and external critics highlighted ongoing struggles. Head of U.S. business Skye Anderson admitted that restaurant operations still required improvement. Additionally, Deutsche Bank analyst Lauren Silberman warned that the company's turnaround remains unproven, pointing to weak same-store sales in July and August.