Are you interested in restaurant stocks? If so, pay close attention to the following: It appears the heavy rainfall and record flooding in both Florida and Texas (also known as Hurricane Irma and Hurricane Harvey, respectively) has put quite the damper on McDonald’s (NYSE:$MCD) Q3 results.
Data tracker M Science disclosed on Tuesday, September 12, that its sales prediction for McDonald’s is weaker than what Wall Street analysts had forecast, according to Bloomberg.
The report caused McDonald’s shares to fall 3.2%, which, according to FactSet, is the company’s worst one-day decline since July 26 of last year.
Both Hurricane Harvey, which hit Texas in August, and Hurricane Irma, which is still making its way up the east coast, are expected to play a defining role in August and September sales at restaurants. And McDonald’s, which has around 2,000 locations in Texas and Florida, is not immune to these forecast declines.
According to M Science, the Golden Arches will likely miss on domestic revenue as well as same-store sales in the upcoming quarter, Bloomberg reported.
This earnings decrease comes after a strong Q2 for the burger chain, which saw sales increase due to the restaurant’s menu of upscale burgers, chicken sandwiches, and discounted beverages.
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