11:09 AM EDT, 05/28/2024 (MT Newswires) -- McDonald's (MCD) saw its lowest quarterly same-store sales growth in Q1 since H1 of 2020 and real-time spending data indicate the slow trend will continue in Q2, BofA Securities said in a note Tuesday.

The company has been facing declining customer traffic since Q3 2023 and is now lagging peers like Burger King and Wendy's (WEN), highlighting issues with difficult comparisons and missed execution, BofA said.

McDonald's $5 combo deal aims to address the lack of a national value menu, but overall prices also need to moderate as the company's cumulative price increase of 20% since 2022 surpasses both Burger King and Wendy's, the analysts said.

BofA said it sees the $5 combo as an urgent move and a temporary measure before introducing a more permanent value offer.

The firm lowered the price objective on McDonald's stock to $288 from $302 and reiterated its neutral rating.

Price: 255.73, Change: -2.38, Percent Change: -0.92