MCD targets $350 – the rise could continue

After reporting financial results last week, McDonald’s stock is climbing and is now approaching its all-time high around $325, last reached in mid-March.

Since then, MCD has formed a potential bullish chart pattern known as a “cup with handle.” This is significant because the stock has shown the ability to benefit from such chart formations over the past nine months, as shown in the chart.

A similar breakout occurred in July of last year, leading to a significant price increase until early October. After a period of consolidation, MCD broke out of two more bullish patterns in February, bringing us to the current situation — where the stock is once again attempting to capitalize on a positive technical setup. Needless to say, a potential breakout would likely push the price significantly higher — toward $350 per share.

📈 Image 1 (click to enlarge):

As the stock once again approaches its highs, it is no surprise that it’s trading above all of its key moving averages, including the 50-day moving average.

Historically, MCD has shown strong upward moves in the months following a break above the 50-day moving average. This was most evident in 2020, 2021, and 2024, when rallies after surpassing the 50-day line exceeded 20% gains.

Currently, the stock is up about 9% since it once again crossed above the 50-day average at the start of 2025. From this perspective, there is room for further upside — especially if it repeats some of its strongest moves in recent years.

Looking at the bigger picture, it’s clear that MCD’s recent strength is nothing new.

The stock has been moving in a distinct upward channel since the post-COVID recovery in 2020. Price has fluctuated between the extremes of this channel in recent years. Right now, MCD is near the middle of the channel, suggesting there is still room to climb if it manages to rise back to the upper edge of the structure.

📈 Image 2 (click to enlarge):

Putting it all together — with MCD just a step away from breaking out of its latest bullish pattern, recently regaining its 50-day average, and still trading within a long-term upward channel — it is clear that the technical picture remains positive.

The risk, however, lies in the scenario where the anticipated breakout fails to materialize, or if an attempt at new highs is quickly rejected by the market.

For now though, the charts support a continuation of the uptrend.