Citi sees downside risks for Aussie quick-service chains on McDonald's upswing

ReutersMay 10, 2026 6:46 PM

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Citi expects downside risks to Australian quick-service restaurants Collins Foods CKF.AX, Guzman y Gomez GYG.AX and Domino's Pizza Enterprises DMP.AX following McDonald's MCD.N Q1 results

Citi notes McDonald's results show its resurgence in Australia is continuing, with a second straight quarter of mid-to-high single-digit comparable growth and third consecutive quarter of market share gains

However, brokerage flags McDonald's experienced a deterioration in sales momentum in international markets, as well as negative comparable sales in April

This suggests that pressure on the QSR consumer is building - Citi

Brokerage also notes that in response to increasing pressure on Aussie QSR customers, McD is focused on a refreshed value meal strategy while GYG is eyeing fewer menu price increases,

Adds CKF is expanding into new platforms and geographies, and DMP is bringing back some level of promotions

YTD, CKF, GYG and DMP down 20.6%, 14.6% and 23.4%, respectively, as of last close

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