On Thursday before the bell Mcdonalds released strong Q2 earnings beating both EPS & revenue targets set by analysts

Mcdonald's released their Q2 earnings recently and strongly beat analysts’ expectations. The fast food chain saw a rise in sales due to a new range of food products across the US & Europe. EPS was expected at $2.79 but came in at $3.17 per share with revenue $230m higher than anticipated at $6.5bn. Analysts also have strong outlooks for the trailing 12 months too with average price targets according to tipranks at $323.79 per share (11% upside)

Looking more at the financials Mcdonald's is doing incredibly well. The total market cap for the company sits around $215-$218bn with Q2 revenue at $6.497bn, up 14% YoY. Net profit for Q2 came in at $2.31bn up 94% YoY.

Looking at the chart the stock also sits really comfortability in a long-term uptrend with support below. Support for McDonalds sits at $285 (blue support) with a break below here then aiming for $280 (June low). Given the strong earnings just released for a fall below $280 there would likely be an external factor at play such as geopolitical tensions or bad economic news (like inflation rising again). Mcdonald's is currently underperforming the S&P’s 18% gain this year up just 11% YTD therefore suggesting there could be some value even after the Q2 earnings call rally.  Toward the upside, resistance for the share sits at $301 followed by trendline resistance at $308. A break above $301 would mean Mcdonald's is at an all-time high and therefore upside potential would be determined by its ability to grow in Q3 & Q4 rather than recover from 2022. Mcdonald's also has a 5.4% weighting in the Dow Jones which will help push this higher if the stock continues to move towards the upside.