Not Lovin' It: McDonald's Stock Faces Bearish Headwinds Ahead Of Q2 Earnings

McDonald’s Corp MCD will be reporting its second-quarter earnings on Monday. Wall Street expects $3.09 in EPS and $6.6 billion in revenues as the company reports before market hours.

The stock is down 13.33% over the past year, and is trading 14.55% lower YTD.

Let’s look at what the charts indicate for McDonald’s stock, and how the stock currently maps against Wall Street estimates.

Bearish Indicators For McDonald’s Stock Ahead Of Q2 Earnings

McDonald’s stock is currently exhibiting bearish signals as it approaches its Q2 earnings announcement, with the share price at $251.46 positioned below the 5-day, 20-day, and 50-day exponential moving averages. This indicates strong selling pressure and the risk of further bearish movement.

Chart created using Benzinga Pro

The 8-day simple moving average (SMA) is at $255.96, while the 20-day SMA is at $253.15, both of which suggest bearish momentum as the stock price sits below these key averages.

Additionally, the 50-day and 200-day SMAs are at $256.62 and $274.43, respectively, reinforcing the bearish sentiment given the stock’s significant gap below these longer-term trends.

Chart created using Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator is at 0.67, underscoring the bearish outlook, although the Relative Strength Index (RSI) of 44.41 (treading downwards) indicates that McDonald’s is nearing oversold territory but still lacks the bullish momentum needed for a reversal.

Furthermore, the Bollinger Bands range from $245.67 to $262.83, with the stock price near the lower band, suggesting limited upside potential and continued selling interest.

Overall, McDonald’s stock faces a challenging technical environment, indicating the possibility of continued weakness ahead of its earnings release.

McDonald’s Analysts Consensus Ratings

Ratings & Consensus Estimates: The consensus analyst rating on McDonald’s stock stands at a Buy, with a price target of $307.62. Stifel, Wedbush, and TD Cowen’s recent ratings suggest McDonald’s stock has an 11.37% upside, with a $281.67 average target.

Price Action: McDonald’s stock was up 0.71% to $253.24 at the time of publication Friday.

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