McDonald's Earnings Report Set to Spark Volatility in Stock Price

McDonald's is set to release its latest earnings report on Tuesday morning, and traders are anticipating the stock could hit a new two-year low following the results. McDonald's shares have been down more than 10% since the start of the year, with options pricing suggesting traders see the stock swinging up to 4% by the end of the week.

According to recent options pricing, a move of that size from Monday's close could see McDonald's shares sink to $255, which would be its lowest point since July. The high end of that range could lift the shares back above $255.

The fast food giant has been working to return to consistent sales growth in recent quarters, with an emphasis on deals and promotions to draw value-conscious consumers. UBS analysts have cut their price target to $340 from $365, saying they see McDonald's results as 'likely to be pressured given a difficult macro backdrop in the US and globally'.