Millennials could be just the start of McDonald's problems

Are the golden arches showing signs of aging?

According to the Wall Street Journal, a research report says young adults are putting down Big Macs in favor of trendier –and supposedly healthier–options from other fast food establishments.

Citing research from Technomic, the Journal report showed that in the last three years, visits to McDonald's by 19-to-21-year-olds have fallen by an astounding 13 percent.

The Tehnomic study also shows those in their 20s and 30s are seeking alternatives, as well. Growth with that population is flat for McDonald's. Instead, Gen Y is increasingly patronizing places like Five Guys Burgers and the more health-focused Chipotle Mexican Grill.

The lack of millennials is just one of the many problems plaguing the fast food giant. Recent sales and earnings figures have come in well short of expectations. McDonald's shares are effectively flat for the year while rivals Burger King and Chipotle have logged respective gains of 40 and 19 percent.

(Read: Investors see generous profits in obesity epidemic)

But despite the underperformance, one "Talking Numbers" contributor still feels the fast food giant is overvalued.

"We're seeing a reversal in trends and a weak environment," said Gina Sanchez, founder of Chantico Global and a CNBC contributor. "So the stock has to come back down to a price that is attractive. And that [means] there's probably more to go from here." According to Sanchez, the stock is suffering from a one-two punch: changing tastes and a tepid economic recovery.

On the technicals, the picture is not improving much, according to one technician's chart work.

(Watch: Desperate McDonald's vs. Dunkin' Dark Roast)

"I'm not really lovin' it here, technically," said Mark Newton, chief technical analyst at Greywolf Execution Partners. "If you look at the stock over the last couple of years, you continue to see increasing signs of underperformance and lagging. My technical targets are down in the low $80s for the stock."

One worry Newton has for the stock is that it broke below what he sees as a two-year trend line in the stock. For him, that suggests continued underperformance to the Dow Jones industrial average, of which McDonald's is a member.

However, Newton is slightly more positive on the longer-term charts. "Since 2003, the stock has had very decent outperformance," he said. Nonetheless, Newton would hold off buying McDonald's shares.

"For now, I think what we call this is a 'super-sized stall-out,' " he said. "If anything, I don't really want to buy the stock just yet. It's premature to buy McDonald's."

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