McDonald's stock declined on Thursday after the Dow Jones burger behemoth's mixed Q1 results revealed a decline in U.S. traffic.
McDonald's reported a 1% decrease in earnings to $2.67 per share adjusted. Total revenue slid 3% to $5.96 billion.
FactSet analysts expected earnings of $2.66 per share on $6.09 billion in sales.
Global comparable sales declined 1% during the quarter. McDonald's reported a 3.6% decrease in comparable U.S. sales, primarily driven by a slip in its guest count.
Systemwide sales, which includes franchise restaurants, eased 1% for the quarter.
CEO Chris Kempczinski said he has "confidence in our ability to navigate even the toughest of market conditions and gain share." He added that consumers are grappling with uncertainty but they can count on McDonald's for value.
McDonald's Stock
McDonald's stock slid 1.9% Thursday on results.
MCD stock is trading in a flat base with a 326.32 buy point, which matches McDonald's record high from March 10.
Shares have a 21-day ATR of 2.68%.
The average true range is a metric available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR.
There are exceptions, but given current market conditions, IBD generally suggests investors keep most of their portfolio focused on stocks with ATRs at or below 6%.
McDonald's stock is up more than 8% this year and trading above its 50-day line.
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