BUY, SELL, HOLD (2)

Bears Loving McDonald's Stock After Revenue Miss

Bad weather and consumer caution impacted the fast food chain's results

Digital Content Manager
May 1, 2025 at 10:43 AM
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McDonald's Corp (NYSE:MCD) stock is down 1.3% to trade at $315.58 at last check, after the fast food giant posted a revenue miss for the fiscal first quarter. While the company beat profit expectations, same-store sales fell for the second-straight quarter in the U.S. for the biggest tumble since Covid-19 amid bad weather and consumer caution.

MCD still sports an 8.9% year-to-date lead, however. The $310 level looks poised to contain any additional pullbacks, while the 10-day moving average is also acting as support. The security is also not too far from its March 10, record high of $326.32, though it has remained below $320 since.

Short-term options traders are overwhelmingly bearish, per McDonald's stock's Schaeffer's put/call open interest ratio (SOIR) of 1.41 that ranks in the top percentile of readings from the past 12 months. In other words, puts have been getting picked up at a quicker-than-usual rate. 

Options traders are also leaning bearish today, with 7,993 puts and 5,917 calls across the tape so far, which is double the intraday average volume. The leading weekly 5/2 320-strike call is most active, with new positions being opened there, followed by the 310-strike put in that same series.
 

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