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McDonald's stock hits oversold levels as AI pricing concerns mount
The shares are at their lowest since 2022 and have an RSI around 25, below the 30 level used to flag extreme downside.
McDonald's shares have fallen to their lowest levels since 2022 and into deeply oversold territory, with a relative strength index around 25, well below the 30 threshold typically used to indicate a stock is stretched to the downside, according to MarketBeat Ratings.
The weakness has been building through the year amid softer U.S. traffic, pressure on lower-income consumers, and execution inefficiencies tied to value menu rollouts and service slowdowns.
MarketBeat Ratings adds that the most recent drop followed McDonald's investor day, when the company introduced an AI powered system for pricing and customer rewards.
Despite the selloff, analysts continue to hold a Moderate Buy view on the stock, with nearly 30% upside to their price target, the outlet said.