I don't know if this would be considered an unintended consequence or just the way the McCookie crumbles, but Ronald McDonald is in trouble.
For the third time, McDonald's stock has been downgraded - this time with a double downgrade that takes the stock from "buy" to "sell." But industry experts aren't blaming the fast food giant. They have another culprit in mind.
Ozempic, Wegovy - whatever new semaglutide-targeting weight loss drug everyone's pushing - some experts say it's keeping people away from the golden arches.
[Redburn Atlantic analyst Chris] Luyckx wrote that GLP-1 weight-loss drugs pose an underappreciated threat to McDonald's, saying that while the current drag on sales may be small, it 'could easily build to 10% or more over time.' ...
[Pepsi CEO Ramon] Laguarta said that the weight-loss drugs also are 'driving more consumption on protein space, on fiber, on hydration.'
All these drugs that are helping people lose weight and lose appetite are also causing our junk-food giants to lose cash.
Of course, there's more than the expert analysis:
Whatever the cause, McDonald's is not doing well at all.
McDonald's was off 1.3% to 300.82 in early Tuesday stock market action, signaling another 200-day line test. On Monday, while the Dow Jones finished nearly unchanged, MCD fell 0.8% to 304.78, briefly undercutting 300 as well as its 200-day line.
MCD finished 6.6% off its 52-week high on Monday.
If McDonald's wants to bring people back, maybe start with this?
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