McDonald’s is facing a bigger problem than weight loss drugs. According to Redburn Atlantic, the fast-food giant’s core value perception is under increasing challenge. The equities broker downgraded its stock to “sell” due to concerns over GLP-1 weight-loss drugs, tempered growth expectations, and pricing fatigue.
GLP-1 (glucagon-like peptide-1) weight loss medications have affected many restaurants, including McDonald’s. However, the real issue for the company is pricing fatigue, which Redburn Atlantic believes will have a greater impact on its business. The downgraded stock rating indicates that investors are worried about the company’s ability to adapt to changing market conditions and maintain profitability.
Source: https://www.marketwatch.com/story/weight-loss-drugs-are-an-issue-for-mcdonalds-but-heres-the-bigger-problem-22b0f668