NEW YORK -- Wall Street is losing its appetite for McDonald's, believing that there aren't many fans of its new Dollar Menu.
Shares tumbled 4.77 percent to a new low for the year Friday.
Value menus have become the tool of choice at fast-food companies to generate traffic. In January, McDonald's revived its popular Dollar Menu, with items priced at $1, $2 or $3.
But competition for mouths has never been more fierce. Rivals Taco Bell and Wendy's responded with their own value meals and they've won some converts.
On Friday, David Palmer of RBC Capital Markets lowered his expectations for the company because of the lack of excitement over the Dollar Menu, on top of a worsening picture for the entire industry.
McDonald's may have cannibalized its own sales with promotions for the Dollar Menu, pulling customers away from its popular breakfast foods, Palmer wrote.
Shares of McDonald's Corp., based just outside Chicago in Oak Brook, Ill., dropped 7.43 points to close at $148.27, levels not seen since May.
Business on 03/03/2018