No way. McDonald's stock has already recovered its earlier losses from 2023 over concerns about these new weight loss drugs.
Here is why:
1. Food companies can make up the difference by raising prices and reducing portion size (which is already a thing, called shrinkflation), and diversifying to new offerings such as food that is specifically marketed to people who are on these drugs, at a markup.
2. People on these drugs still need to eat, but not as much. This varies by person. Some have significant appetite loss, others not so much.
3. Response is highly variable, with anywhere from 20-50% of people losing only between 0-15% of initial weight, which may not be enough weight loss to justify the side effects and costs. People who do not lose much weight will still be overweight or obese, and given the costs and side effects, will likely discontinue usage.
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[ 0.20 ms ] story [ 13.7 ms ] threadHere is why:
1. Food companies can make up the difference by raising prices and reducing portion size (which is already a thing, called shrinkflation), and diversifying to new offerings such as food that is specifically marketed to people who are on these drugs, at a markup.
2. People on these drugs still need to eat, but not as much. This varies by person. Some have significant appetite loss, others not so much.
3. Response is highly variable, with anywhere from 20-50% of people losing only between 0-15% of initial weight, which may not be enough weight loss to justify the side effects and costs. People who do not lose much weight will still be overweight or obese, and given the costs and side effects, will likely discontinue usage.