McDonald’s has signaled that customer traffic in major markets is likely to remain flat as long as inflation stays elevated, a caution that weighed on its shares, which fell by as much as 6.5% to a nearly four-year low. The fast-food giant unveiled an $8.5 billion franchisee support package and outlined long-term growth initiatives on Wednesday, but investor concern lingered over the pace of its turnaround amid slowing sales and stiff competition.

The company’s chief executive officer, Chris Kempczinski, told investors that McDonald’s expects industry-wide traffic growth in its wholly owned markets to be stagnant while inflationary pressures persist. He emphasized that companies that succeed will be those able to generate increased demand and deliver it efficiently.

McDonald’s has been facing challenges in regaining lower-income customers who cut back on dining out as the broader economic environment tightens wallets. The company missed second-quarter U.S. sales growth projections last month, attributing the shortfall to execution issues that hampered efforts to attract budget-conscious consumers.

Shares of McDonald’s have declined approximately 22% this year, including Wednesday’s drop to $234.03, marking the lowest share price since 2022. Skye Anderson, McDonald’s newly appointed head of U.S. business, acknowledged the company’s recent performance issues, citing inconsistent execution and the need to enhance restaurant operations to support growth.

The company’s “NEXT” strategy, announced in June, serves as the framework for its turnaround plan, prioritizing improvements in food quality, hospitality, value, and innovation. During the investor meeting, executives presented a detailed roadmap with specific goals, including raising restaurant productivity and achieving operating margins in the low to mid-50% range by 2030.

The $8.5 billion support program announced on Wednesday is aimed at helping franchisees manage the substantial costs associated with implementing the “NEXT” plan. Franchisees operate the majority of McDonald’s locations and bear significant investment burdens as the company pursues modernization and customer experience enhancements.

Industry observers note that such turnarounds typically require extended periods before results are realized. Jake Dollarhide, CEO of Longbow Asset Management and an investor in McDonald’s, pointed to Starbucks’ recovery as an example, noting that its strategic investments took nearly a year to translate into sales growth.

As McDonald’s navigates a challenging economic landscape marked by inflation and changing consumer behavior, the company is focused on executing its long-term plan while managing short-term pressures that impact customer traffic and overall performance.