McDonald's was one of the Dow Jones's biggest decliners on Tuesday morning on the New York Stock Exchange, with the fast-food giant's share price penalized by a note from Bank of America.

Just over an hour after opening, the world's number-one fast-food company's share price was down 0.7%, underperforming a Dow index down less than 0.4%.

In a note, BofA analysts expressed concern about the company's slowdown in like-for-like growth, which in the first quarter hit its lowest level since Covid's inception in early 2020.

According to their indications, this bout of weakness is set to continue into the second quarter, an underperformance they explain by a less favorable basis of comparison, but also by poorer operational execution.

While acknowledging that the stock's valuation is currently at the lower end of its historical range, the research firm expects the stock's performance to be held back by a return of like-for-like growth to around its long-term average in the US, i.e. 2-3%.

As a result, BofA has lowered its price target on the stock to $288, from $302 previously, while maintaining its 'neutral' opinion on the stock.

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