NEW YORK (TheStreet) -- McDonald's (MCD) - Get Report stock is one of today's "losers," closing lower by 4.47% to $121.71 due to weak 2016 second quarter same-store sales, CNBC's Susan Li reported on "Closing Bell" Tuesday.
Before today's opening bell, McDonald's reported that second quarter same-store sales rose by 1.8% year over year, missing Wall Street estimates of a 3.2% growth. The company posted adjusted earnings of $1.45 per share on revenue of $6.26 billion, compared to analysts' expectation of $1.38 a share on $6.27 billion in revenue.
"First of all the entire restaurant industry is in a slump. The sales have been flattening in the past quarter and it looks like McDonald's is not immune to that," Li noted.
The all-day breakfast and McPick 2 Menu initiatives may "not be doing as well as McDonald's had hoped," she added.
However, margins are being driven by strong growth in China, Li continued.
Moving forward, the biggest headwind McDonald's expects to see from Brexit is currency translation, which will negatively impact next quarter's earnings by 2 cents to 4 cents, according to Li.
"Still though McDonald's is still returning a whole lot of cash to shareholders," Li commented.
In addition, the fast food giant is looking at opportunities to take advantage of Nintendo's (NTDOY) hit augmented reality game "Pokemon Go," she concluded.
Separately, TheStreet Ratings rated McDonald's as a "buy" with a score of B.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, notable return on equity, expanding profit margins and good cash flow from operations. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
You can view the full analysis from the report here: MCD
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.