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McDonald’s Stock Rebounds on Solid Sales and a Bullish Technical Setup

McDonald’s (MCD) stock is rallying more than 3% this morning despite missing Wall Street’s earnings target.

The world’s largest restaurant chain reported third-quarter earnings per share of $3.22, below estimates of $3.33, but delivered 3.6% same-store sales growth.The results signal that the company continues to outperform peers in a slowing consumer environment.

The U.S. segment posted a 2.4% same-store sales increase, topping expectations for 1.9%. Growth came primarily from higher average checks as customers paid more per order, even amid fierce “value wars” across the fast-food industry.

CEO Chris Kempczinski called the performance “a testament to our ability to deliver sustainable growth even in a challenging environment.”

That challenge remains clear: McDonald’s continues to warn of a split consumer base, where lower-income traffic has fallen nearly double digits for two years, while higher-income diners continue spending.

Demand Remains Constant

Globally, McDonald’s saw steady demand across regions.

The International Operated Markets division, which includes Canada and Australia, reported a 4.3% same-store sales increase, while its International Developmental Licensed Markets grew 4.7%, led by Japan. These results underscore McDonald’s global pricing power and brand resilience, even as the company expects consumer pressure to persist well into 2026.

The company’s value strategy is again proving effective. McDonald’s reintroduced Snack Wraps - priced at $2.99 after a nine-year absence - which became one of the most successful product launches in recent history, with nearly one in five customers buying one within four weeks.

The return of Extra Value Meals and the upcoming Monopoly promotion are designed to attract price-sensitive diners while maintaining traffic among higher-income customers seeking perceived value.

McDonald’s Charts Remain Bullish

From a technical perspective, MCD shares are reasserting leadership within the restaurant sector.

The stock is trading back above a trinity of bullish moving averages—the 20-, 50-, and 200-day lines, which turned positive in tandem this summer.

That pattern often marks the start of a sustained uptrend. The recent rally also returns shares above key support from the $295–$300 range, where institutional buyers have repeatedly stepped in.

The next critical level to watch is $310, which has acted as a short-term ceiling for two months.

A confirmed breakout above that level would likely trigger a wave of technical buying and reposition MCD as one of the market’s more defensive growth plays heading into year-end.

(Click on image to enlarge)

Bottom Line on McDonald’s

While the broader restaurant industry, including Darden (DRI), Cava (CAVA), and Chipotle (CMG), has warned of weakening consumer demand, McDonald’s stands out for adapting quickly to economic conditions. The company leveraged value-driven menu adjustments to gain share during the Great Recession, and it appears to be executing the same playbook today.

With shares still trending higher over the long term, the technical price target remains $350, supported by improving momentum, strong brand equity, and a consistent ability to protect margins even as consumers tighten their belts.

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