U.S. business growth falls to a one-year low, stock price evaporates 19% year-to-date! McDonald's Corporation (MCD.US) urgently swaps leadership to rebuild its "value" defense line.

McDonald's Corporation (MCD.US) is adjusting its value strategy portfolio after its U.S. business experienced its slowest growth in over a year. According to a message to operators, the company will work with franchisees in the coming weeks to develop a "longer-term" plan that can attract value-conscious diners. At the same time, McDonald's Corporation is "building a short-term bridge plan," rolling out temporary products and digital offers focused on categories currently performing well. On its app, customers can get a breakfast sandwich for $2, or free fries with a minimum $1 purchase. The move comes alongside adjustments to how the company trains and supports franchisees. This is the first sign of a shift under new U.S. business head Skye Anderson, and it comes ahead of next week's investor day. Although McDonald's Corporation has largely outperformed fast-food competitors in recent years, the company is trying to avoid a prolonged slump in the U.S.especially as Burger King gains momentum. The stock has fallen 19% year-to-date, increasing pressure on management. Last quarter, McDonald's Corporation's U.S. same-store sales rose 0.8%the weakest performance since early 2025. Last month, Anderson was appointed to bring "focus and urgency" to the business. In 2024, McDonald's Corporation got a boost from its $5 meal deal, as the burger chain sought to reverse perceptions that its food had become too expensive. The latest memo shows the company is looking to further refine its affordability strategy. The company said "compelling value remains critical to bringing customers into our restaurants and shoring up the foundation of our business," according to the message, which was signed jointly by the head of the company's headquarters and the head of the franchisee group involved in developing these plans. Earlier this year, McDonald's Corporation expanded its value lineup, introducing at least 10 items priced under $3. But CEO Chris Kempczinski said on the company's August 4 earnings call that many franchisees, who have pricing autonomy, did not adopt recommendations from third-party consultants, which hurt performance. McDonald's Corporation also reduced app-only offers and ended its "add $1, get one free" promotion. McDonald's Corporation had previously announced a multi-year plan aimed at becoming consumers' preferred dining destination, expanding its appeal beyond customers who just want a quick, cheap fast-food meal. This includes higher-quality food, such as hand-breaded fried chicken, and restaurant renovations to create a more open feel. The company also wants to provide friendlier service and hopes all customers are greeted when they enter. As part of these efforts, according to the memo, McDonald's Corporation will pause temporary store visits to some franchisees before March 31, shifting instead to targeted training aimed at improving the customer experience. Employees will take training courses on hospitality and ensuring menu items are always prepared properly. McDonald's Corporation said in the message that "there is more work to do in these areas," and that "a customer's last visit often determines whether they will come back, which is why every interaction should reflect the best of McDonald's Corporation." The seller of the Big Mac is facing intense competition from Burger King. Thanks to improvements to its signature Whopper and ongoing restaurant renovations, Burger King grew faster last quarter. The chain, owned by Restaurant Brands International, Inc., also appointed a manager specifically responsible for handling any issues customers encounter during their visit. According to debit and credit card data tracked by Second Measure, McDonald's Corporation's U.S. sales declined in July and August. Jefferies Financial Group Inc. analyst Andy Barish said in a recent investor note that the investor day scheduled for September 23 "could be a key 'clear the air' event," allowing management to demonstrate it has a credible plan. Barish wrote that "for the stock to rebound, management must convince investors that the recent same-store sales slowdown is (soon) addressable."