Elliott Wave Perspective
From an Elliott Wave perspective, McDonald’s stock may rally before a pullback as its structure matures. The stock’s price actions suggest the formation of either a triangle or a bullish nest. If a correction occurs, McDonald’s might reach around $336.36, and a bearish signal could indicate the end of wave ((1)) and the start of a potential correction. These insights are based on the Elliott Wave Forecast team’s analysis.
Given the current stability in McDonald’s, we see the stock moving within a defined range, likely forming a technical triangle pattern. This suggests a period of consolidation before a potential move higher toward the $336 mark. The critical support level to watch remains at $283.63, which is expected to hold in the near term.
Our view is supported by the company’s recent third-quarter report from October 2025, which showed strong global comparable sales growth of 8.8%. U.S. sales were particularly robust, rising 8.1% due to strategic price increases and continued consumer traffic. These results confirm that McDonald’s business model is successfully navigating inflationary pressures.
Consumer Spending Resilience
Furthermore, November 2025 consumer spending data showed resilience, with retail sales holding steady despite persistent inflation. This economic backdrop favors value-oriented companies like McDonald’s, reinforcing its status as a defensive stock. We have seen this pattern before, particularly during the inflationary environment of 2022 and 2023, when the stock outperformed the broader market.
For the coming weeks, a strategy of selling out-of-the-money put spreads could be considered. This approach capitalizes on the expected price stability and the strong support level identified near $283, allowing traders to collect premium while the stock consolidates. The moderate volatility means option prices are not excessively high, making this a viable income-generating strategy.
As we approach the projected target of $336.36, traders should prepare for a potential reversal, as a significant correction is expected after this peak is reached. Gearing up for this, initiating long put positions or establishing bear call spreads could hedge against the anticipated corrective wave. This allows for capturing the initial upside while being positioned for the subsequent downturn.
