McDonald's (MCD) Plunges 2.04% Amid Legal Settlement, Analyst Downgrades

McDonald's (MCD) shares fell 2.04% intraday, marking the lowest level since April 2025, with a 2.27% decline over the past two days.

The strategy of buying MCD shares after they reached a recent low and holding for one week yielded a 13.25% return over the past five years, underperforming the benchmark by 43.29%. With a Sharpe ratio of 0.29 and a maximum drawdown of -18.11%, the strategy faced significant volatility and risk, highlighting the challenges of such a short-term holding approach.

McDonald's recent legal settlement with media mogul Byron Allen for $10 billion may have a positive impact on the company's stock price by avoiding a potentially damaging chapter. This settlement could alleviate investor concerns about legal risks and improve market sentiment towards the company.

Analyst actions have also played a significant role in the recent fluctuations of McDonald's stock price. On June 13, 2025, Argus downgraded McDonald's from a "buy" rating to a "hold" rating, and Loop Capital also downgraded the shares from a "buy" to a "hold" rating. These downgrades reflect analysts' concerns about the company's near-term prospects and may have contributed to the recent sell-off in the stock.