BTIG’s recent franchise checks at McDonald’s reveal that foot traffic remains weak despite heavy discounts. The softness, which was prevalent in January and February, has largely continued into spring, with varying trends among operators in March and April. BTIG analysts note that while McDonald’s is implementing menu innovations, digital loyalty growth, and value bundles to boost traffic, they do not anticipate a sustained improvement in the first half of 2024. Discounting is likely to remain a strategy for the rest of the year. As a result, BTIG has adjusted its first-quarter comparable sales estimates downward, anticipating more normalized same-store sales and limited earnings growth.
McDonald’s Traffic Remains Challenged Despite Heavy Discounts
