McDonald’s (MCD) shares suffered their largest single-day drop in more than a year Tuesday after a research firm warned that the fast food chain could deliver worse-than-expected results in its third fiscal quarter.
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The note comes as investors attempt to assess the impact Hurricanes Harvey and Irma will have on fast food and restaurant chains in the region. McDonald’s has hundreds of store locations in Texas and Florida, the two states hit hardest by the storms.
M Science, a research and analysis firm, warned clients that its data indicated that McDonald’s revenue and same-store sales could miss Wall Street expectations. The firm declined to provide further details on its bearish case for the fast-food giant, stating that its notes are “proprietary” and “for clients only.”
McDonald’s shares fell more than 3% in trading after the note’s release, just one day after the stock closed at a record high of $161.53. The plunge marked the chain’s largest percentage decrease since July 2016, when shares fell more than 4%.
However, 2017 has been a strong year for the company. McDonald’s posted strong revenue and same-store sales in its most recent quarter last July, due in large part to the success of its discount soda promotions and “Signature Crafted” premium sandwiches.
Overall, McDonald’s shares are up more than 28% so far this year.