Apple and Restaurant Brands pullbacks signal potential setup for further gains

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Apple, Restaurant Brands pullbacks

Highlights

Apple posts June quarter revenue of $109.4 billion, up 16% year over year, with iPhone and Mac revenue up 22% and 29% respectively, and guides for 9% to 11% revenue growth in September quarter.
Apple shares near $317 filled a prior summer gap, with RSI at 51, suggesting momentum reset and key support at $300 and $284 levels.
Restaurant Brands stock gains 19.8% year to date, driven by Burger King U.S. comparable sales up 8.5%, and management targets $2.60 dividend and $500 million in buybacks.

Technical setups follow product and earnings momentum

As reported by CNBC, market commentator Josh Brown and colleague Sean highlighted Apple and Restaurant Brands as stocks whose recent retreats appear to be refreshers rather than rally-enders after both names reached 52-week highs in recent weeks.

For Apple, the backdrop includes three straight record quarters and a June quarter that delivered $109.4 billion in revenue, up 16% year over year. iPhone revenue rises 22% to $54.3 billion, Mac revenue climbs 29% to $10.4 billion, and Services reaches a record $30.7 billion, up 12%, while earnings per share of $2.02 increase 29%.

Management guides for 9% to 11% revenue growth in the September quarter, slower than the prior quarter's pace, while indicating demand, not supply, is the constraint. The company also introduces the foldable iPhone Duo at $1,999, alongside higher-priced iPhone 18 Pro models, AirPods 5, and new Apple Watch devices, under new Chief Executive John Ternus, who takes over on September 1 as Tim Cook becomes executive chairman.

Brown says Apple's chart has now filled a gap from its earlier summer drop, a move he describes as a classic sign that selling pressure has been absorbed. He says the stock's move back through that price gap, with shares near $317 and the RSI at 51, suggests momentum has reset without breaking the broader trend, with $300 as a key near-term level and the 200-day moving average near $284 as a deeper support marker.

Burger King strength underpins Restaurant Brands outlook

Restaurant Brands is also drawing attention as Burger King regains market share and the parent company's broader portfolio posts steady growth. Sean says the stock has risen 5.8% since early April and 19.8% year to date, after pushing through a long-standing ceiling near $75 and reaching as high as $81.67.

Second-quarter results show Burger King U.S. comparable sales up 8.5%, more than nine points ahead of the U.S. burger quick-service industry, helping the chain pass Wendy's as the second-largest U.S. burger brand by system-wide sales. International comparable sales rise 5.5%, Firehouse Subs system-wide sales increase 7.5%, and the company reports consolidated comparable sales growth of 3.8% with adjusted earnings per share of $1.07 on $2.52 billion in revenue.

Management sets a $2.60 dividend target, up 5%, marking an 11th straight annual increase, and guides to roughly $500 million in buybacks. Net leverage eases to 4.1x from 4.2x, with a low-to-mid 3x target by 2028, while Pershing Square adds about 14% to its position in the second quarter.

Brown says Restaurant Brands has been forming a cup-and-handle pattern for months and is close to a breakout. He identifies $82 as the key threshold for confirmation, with the RSI back to a neutral 48, and says support sits near the 50-day moving average at $76 and the 200-day at $73 if the breakout does not hold.

Our earlier coverage of Apple’s $1,999 foldable iPhone Duo launch explained why the pricing and product positioning were seen as a push for adoption and ecosystem growth rather than immediate margin expansion. We also noted the initial market reaction in Apple shares and highlighted the key questions investors were focused on around foldable demand and what the new form factor could mean for Apple’s longer-term services opportunity.

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