After former President Donald Trump made headlines serving fries at a McDonald’s drive-thru in Pennsylvania over the weekend, some were quick to speculate that the fast food giant’s stock might see some turbulence.
During Monday’s trading hours, McDonald’s (NYSE: MCD) shares experienced a slight dip, but was it really due to Trump’s impromptu shift behind the counter?
On Sunday, Trump was spotted chatting with voters and handing out fries, creating a buzz across social media. However, McDonald’s was quick to clarify its stance, distancing itself from any political endorsement.
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“Upon learning of the former president’s request, we approached it through the lens of one of our core values: we open our doors to everyone,” the company said in a statement to the Associated Press. “McDonald’s does not endorse candidates for elected office and that remains true in this race for the next president. We are not red or blue – we are golden.”
While McDonald’s appreciates recognition from prominent figures like Trump, they stressed neutrality in the political arena:
“Though we are not a political brand, we’ve been proud to hear former President Trump’s love for McDonald’s and Vice President Harris’s fond memories working under the Arches.”
While some on social media speculated that Trump’s fry-serving stunt might boost the stock, the reality suggests otherwise.
McDonald’s stock price analysis
McDonald’s began Monday trading at $316.90 before retracing to a 0.8% decline. The price had hit $313.18 by the time of publication, marking a 1.17% decline since Friday’s close.
Financial experts weighed in, noting that the broader market experienced a general downturn. McDonald’s drop was relatively mild in comparison to the rest of the market.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek. He added that the slight dip wasn’t significant enough to link to Trump’s public appearance.
“This was an isolated incident at one of the restaurant chain’s locations and wasn’t a part of a business relationship between the company and Trump. The broader market was down today, as well, meaning McDonald’s got dragged down with most of the other consumer stocks.”
Despite the viral moment and social media buzz, it seems McDonald’s stock was more affected by overall market conditions than by Trump’s impromptu fry-serving stunt.
