On Wednesday, McDonald’s Corp. (NYSE:MCD) CEO Chris Kempczinski said persistent inflation and stagnant customer traffic will continue to pressure the restaurant industry.
"We’re not expecting things to change,” Kempczinski said on CNBC’s “Squawk on the Street.”
McDonald’s Stock Hits 4-Year Lows
McDonald’s shares hit a four-year low on Wednesday and are heading for a seventh consecutive weekly loss. This marks the worst streak since July 2014.
The decline accelerated after the company’s investor day, where an $8.5 billion franchisee support plan failed to reassure investors.
Analysts have adjusted their price targets, with UBS, Citigroup, and Morgan Stanley lowering their expectations, while Seaport Global initiated coverage at Neutral, indicating meaningful improvement is unlikely before mid-2027.
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Technical Analysis
McDonald’s last closed at $237.43, with an RSI of 25.27 indicating oversold conditions. The stock trades 9.99% below its 50-day SMA of $263.79 and 18.85% below its 200-day SMA of $292.57. The 50-day SMA is currently below the 200-day SMA.
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