With earnings season underway, the majority of companies have come in beating analyst estimates. However, some analysts say there's danger lurking in the next round of reports.
"The one that I'm really worried about is McDonald's," Erin Gibbs of S&P Capital IQ said Monday on CNBC's "Power Lunch." "They've had two years of lagging sales, they've implemented a lot of new strategies, and nothing has been able to gain foot [traffic] and turn around sales."
The company faces challenges from increasing wages and new market competitors such as Chipotle and Shake Shack. This year, McDonald's has explored adding kale, gouda cheese and sirloin beef in attempts to create a more sophisticated menu.
Gibbs also said a recent poll spelled trouble for the fast food restaurant, in which 29 franchisees gave the worst sales outlook since 2003. The survey was conducted by Janney Capital Markets, and found franchisees rated the company forecast at an average of 1.84 on a scale of 1 to 5.