Restaurant stocks are on fire this year, but McDonald’s has gotten left in the dust.
Shares of the world’s largest fast food company are down nearly 8 percent since January, compared with a more than 26 percent gain in the same time period last year.
Worth noted that while shares of McDonald’s have been underperforming this year, they have been on a torrid run over the last three decades, more than tripling the performance of the Nasdaq composite.
Despite seeing gains of nearly 64 percent in the last five years, Worth’s charting reveals a number a bearish technical indicators signaling shares of McDonald’s are now “coming down to trend” around the $140 level.
“Some might say [McDonald’s is] going to break out,” he said. “That’s a bet I would not make. I think it’s going to break down.”
McDonald’s is scheduled to report second-quarter earnings before the bell on Thursday. The stock was trading slightly higher Monday afternoon, around $158.40.