McDonald’s Downgraded as Rivals Close In: Consumer Biz Report

Shares of McDonald’s Corporation (NYSE:MCD) were downgraded from Buy to Neutral on Monday by the analyst Matthew DiFrisco at Lazard Capital Markets, explaining that tough competition might deter sales growth, adding that a key sales figure will likely decrease by 1.8 percent in the last three months of this year, with a slow start in the next. The key figure that DiFrisco mentioned is revenue from restaurants that have been open no less than a year, which in McDonald’s case indicates that it is losing domestic share while fast-food trends are stalling in a number important overseas markets as well. After years on top, the historic company has struggled of late with its competitors Wendy’s (NYSE:WEN) and Burger King (NYSE:BKW), as they have given their menus remakes, and new items keep Taco Bell’s (NYSE:YUM) sales growth running along nicely. Further, fast casual chains such as Chipotle Mexican Grill (NYSE:CMG) have customers piling in their better quality of food for prices only a bit higher.

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