Shares of fast-food giant McDonald's continued their decline on Monday, extending losses from last week's earnings report. The stock has now broken below a key prior support level, with technical indicators pointing to a pressured outlook.

Last Thursday, McDonald's reported first-quarter revenue of $6.52 billion, slightly above market expectations of $6.47 billion. Adjusted earnings per share came in at $2.83, surpassing the expected $2.74. Despite the better-than-expected performance, management cautioned that rising gasoline prices and a potential pullback in consumer spending could impact demand, sparking concerns over second-half performance.

Following the earnings report, several investment banks lowered their price targets. JPMorgan reduced its target for McDonald's from $325 to $305 on Monday, while maintaining an "Overweight" rating. Analysts noted that while the first quarter was solid, the second quarter presents challenges for the fast-food chain, and they also lowered profit forecasts for 2026 and 2027.

From a technical perspective, McDonald's stock has broken below the previous support area around $285. As of early Monday trading, the stock was trading near $275.62, with its year-to-date low at $274.83. Key moving averages are in a bearish alignment, with the 50-day moving average at $311.40 and the 200-day moving average at $311.40, both significantly above the current price. The Relative Strength Index has fallen to around 33, approaching oversold territory, but no clear reversal signals have emerged yet.

Market observers suggest that the $280 level has now become a new psychological resistance point. If the stock fails to reclaim this level in the near term, it may continue to seek lower support.