McDonald’s shares face largest decline since pandemic

McDonald’s shares are experiencing their most significant correction since the pandemic, marking the second-largest decline in at least 20 years. The stock has seen a notable drop from its historical highs, trading significantly lower than its peak reached in early 2026.

Several factors are contributing to this downturn. Rising prices driven by inflation have led many customers, particularly low-income households, to reduce their visits to save money. Additionally, the company is facing increased operational costs due to rising wages and the soaring price of raw materials. Specifically, the cost of ground beef has reached historic highs, partly due to a smaller US cattle herd limiting domestic supply.

Changing consumer preferences and external health factors are also impacting the business. There is a growing trend toward chicken consumption over beef in the United States, and management has noted that the popularity of obesity medications has also influenced customer traffic.