John Glass, a restaurant analyst at CIBC, said that from a financial point of view, the company was taking a "calculated risk."

"For many years it functioned as a semiprivate club," said Malcolm M. Knapp, a restaurant analyst in Manhattan.

But like many other restaurant analysts, both men remain enthusiastic about McDonald's, and rank its stock as a "buy."

"In fast food, it's more than just advertising," said Andrew Barish, a restaurant analyst at Banc of America Securities.

As one restaurant analyst noted, "They don't have a whole lot of competition.

"They're losing market share across the board," said Mitchell J. Speiser, a senior restaurant analyst with Lehman Brothers.

"I don't see much downside," said Joe Buckley, restaurant analyst for Bear Stearns.

Caroline Levy, restaurant analyst for Shearson, urged avoiding the stock because of declining growth.

Joseph Buckley, a restaurant analyst at Bear Stearns, discussed whether there is still some sizzle in the stocks.

"The marketplace already knew that first-quarter sales were weak," said Peter Oakes, a restaurant analyst at Merrill Lynch.