McDonald's (MCD) Plunges 5.22% in Five Days Amid Earnings Disappointment

McDonald's (MCD) shares fell 1.40% intraday, marking the fifth consecutive day of decline and reaching its lowest level since February 2025, with a total drop of 5.22% over the past five days.

The strategy of buying MCD shares after they reached a recent low and holding for one week yielded a 10.00% return over the past five years. However, this was significantly underperformed the benchmark, which returned 56.94%, resulting in an excess return of -46.94%. The strategy also had a maximum drawdown of -18.11% and a Sharpe ratio of 0.22, indicating a challenging risk-return profile.

McDonald's stock has been under pressure due to a recent decline in its share price, which has dropped by about 8% over the past month. Analysts have expressed dissatisfaction with the company's latest earnings report, which has contributed to the stock's downward trend.

Concerns about traffic and consumer pushback on menu pricing have also weighed on McDonald's stock. These issues have increased pressure on the company, leading to a dip in its share price to the lowest level since February.

Recent product launches and a legal settlement have further impacted McDonald's stock. These developments, combined with softer same-store sales, have added to the challenges faced by the company.

Additionally, an upcoming nationwide boycott of McDonald's is planned for June 24, led by the pro-Palestinian BDS movement. This boycott could potentially impact the company's stock price and overall performance.