MCD stock fell sharply despite 9% revenue growth to $6.5 billion and $2.78 EPS in Q1 2026, driven by economic uncertainty and insider selling.
McDonald’s shares dropped 18% since late February, falling from $341 to $278, as geopolitical tensions and inflation concerns weighed on sentiment. The decline occurred despite strong Q1 2026 earnings, with revenue rising 9% to $6.5 billion and earnings per share climbing 7% to $2.78, beating estimates.
Systemwide sales surged 11% year over year to $34 billion, while comparable sales increased 3.8%. However, U.S. store margins compressed to levels deemed “not acceptable” by CFO Ian Borden, reflecting cost pressures. Insider selling in March also contributed to the stock’s decline after shares peaked above $340.
The stock is now at a 52-week low, despite the company’s solid financial performance, as macroeconomic uncertainty overshadows results.