McDonald’s shares trade at a decade-low forward P/E of 20.7x after US same-store sales fell 2% in Q2, underperforming peers.
McDonald’s stock dropped to near two-year lows, down 13.3% in 2026, lagging the S&P 500’s 10.6% gain. The company’s forward P/E multiple stands at 20.7x, its lowest in over a decade.
US same-store sales declined 2% in the second quarter, marking a multi-year low in relative performance against the fast-food benchmark. Analysts cited weak consumer demand and pricing pressures despite recent menu innovations, including new caffeinated drinks targeting Gen Z.
The stock’s valuation compression reflects broader industry challenges, with investors awaiting a September event for potential strategic updates on asset investments and menu innovation.