McDonald's CEO Chris Kempczinski indicated that high inflation and stagnant customer traffic are likely to continue affecting the restaurant sector, leading to a modest same-store sales growth of just 0.8% in the latest quarter. This has resulted in a more than 5% drop in McDonald's shares, marking their lowest point since 2022.
In contrast, Cracker Barrel Old Country Store saw a 5% increase in its stock after reporting adjusted earnings per share of 99 cents, surpassing last year's 74 cents, and revenue of $849.3 million, which exceeded Wall Street's expectations.
Worthington Enterprises also rose 4% following a positive outlook from CEO Joseph Hayek, who noted growing demand for their engineered tanks used in data centers, with first-quarter earnings and revenue exceeding estimates.
On the downside, Astrana Health's shares fell 6% due to a significant data breach, while Royal Caribbean's stock dropped nearly 3% after announcing a $3 billion acquisition of a stake in Sandals and Beaches Resorts. Alibaba's shares fell 4% as investors took profits after a recent rally, despite the company launching a new AI chip and ambitious data center plans.
Paychex shares tumbled almost 7% after reporting revenue that met expectations but missed on its Management Solutions segment. IonQ's stock rose 5% following a breakthrough in quantum error correction technology, while Maplebear's shares fell 3% after announcing a partnership with Meta's AI agent.
Lastly, Immunovant's stock dropped 9% after disappointing trial results for a lupus treatment, although the company plans to pursue other autoimmune disease applications for the drug