McDonald's (MCD, Financial) dipped to its lowest level since February as traffic worries and consumer pushback on menu pricing add pressure on the fast-food giant.
Shares of McDonald's slipped Wednesday amid growing concerns that years of price hikes are weighing on guest counts. Morgan Stanley still calls MCD a “top-quality business,” but warns it isn't immune to structural headwinds in quick-serve dining. Argus recently downgraded the stock, citing likely sustained traffic weakness after surveys showed U.S. On the flip side, the average sell-side price target sits at $328.75, implying roughly 13% upside. dding to the mix are calls that McDonald's could face global consumer backlash linked to U.S. policies, though how much that factors into foot traffic is still up for debate.
Foot-traffic trends are the lifeblood of fast-food earnings, and when a bellwether like McDonald's starts losing momentum, it signals broader discretionary-spend stress. With shares trading below all major moving averages and RSI hitting one-year lows, investor sentiment is tilting cautious—making upcoming same-store sales and traffic metrics critical.
Keep an eye on McDonald's next traffic update and quarterly report. A rebound in guest counts could spark a relief rally, while continued softness might push shares toward key technical supports in the low $280s.
