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McDonald's Stock Crosses $300McDonald's stock has surged over 4.5% , reinforcing its bullish momentum, which had been paused after a prolonged neutral phase. Today’s earnings report has been a key driver, as the company posted earnings per share of $2.83 , in line with forecasts, along with a questionable sales figure of $6.39 billion , slightly below the $6.44 billion expected. However, what has fueled the temporary bullish momentum is the board of directors’ decision to eliminate certain discounts that had been in place during previous quarters. These promotions are no longer considered essential for boosting sales growth, as they may have negatively impacted the company’s revenue figures. Now, the market sees this shift as a potential catalyst for sustained sales growth, which could in turn support long-term stock price appreciation. Breaking the Sideways Trend Until a few sessions ago, McDonald's stock had been trading within a tight range, fluctuating between $300 resistance and $286 support. However, the rising bullish momentum has pushed this sideways phase into the background. Now, analysts are evaluating whether this new upward gap could mark the beginning of a stronger trend movement. This scenario could materialize if the stock manages to reach its previous highs at $317. Technical Indicators RSI: The RSI line has spiked rapidly and is now reaching overbought levels, as indicated by the 70-mark threshold. If the stock remains above this level, it could signal a potential downward correction in the coming trading sessions. MACD: The histogram has started to diverge from the neutral 0 level , indicating that the latest moving average trends continue to support the bullish movement. As long as this bias remains in the MACD, buying pressure could become even more significant. Key Levels to Watch $317 – Current key resistance, aligning with the October 2024 high. Consistent movements above this level could signal the beginning of a new and fresh uptrend in the stock. $300 – New support level, corresponding to the top of the previous lateral channel. If the price dips back below this level, it could increase neutral bias and lead to extended sideways movement. This also serves as a potential retracement area in the short term. $293 – Support zone, marked by the 50- and 100-period moving averages. If the price falls below this level, it would signal an end to the current bullish momentum, potentially confirming the start of a larger downtrend. By Julian Pineda, CFA – Market Analyst
NYSE:MCD
by FOREXcom
Amidst Q4 Revenue Estimate, $MCD is Up 2.86% Premarket TradingMcDonald’s (NYSE: MCD), the global fast-food giant, delivered a mixed bag of results in its Q4 CY2024 earnings report. While the company missed both revenue and earnings estimates, the stock surged nearly 2.86% in premarket trading, defying expectations. This paradoxical reaction highlights the interplay between technical and fundamental factors driving investor sentiment. Revenue and Earnings Miss McDonald’s reported Q4 revenue of $6.39 billion, falling short of Wall Street’s $6.46 billion estimate. This represents flat year-over-year growth and a 1.1% miss. Adjusted earnings per share (EPS) of $2.83 also came in 1% below the consensus estimate of $2.86. While the company maintained strong profitability, with an operating margin of 44.9% (up from 43.7% in the prior year), the revenue and EPS misses raised concerns about its growth trajectory. Comparable Sales Global comparable sales grew by 0.4%, beating expectations of a 0.41% decline. However, U.S. comparable sales dropped 1.4%, worse than anticipated. This decline was partly attributed to an E. coli outbreak in October, which impacted traffic in several states. Additionally, McDonald’s has faced criticism for raising prices too aggressively, alienating budget-conscious consumers. In response, the company has rolled out value-centric deals and promotions to win back customers. Long-Term Growth Strategy Despite the short-term challenges, McDonald’s remains committed to its "Accelerating the Arches" strategy, which focuses on expanding market share and driving operational efficiency. Chairman and CEO Chris Kempczinski emphasized that this strategy is delivering results, even as the company navigates macroeconomic headwinds and shifting consumer preferences. Strong Full-Year Performance For the full year 2023, McDonald’s posted revenue of $25.49 billion, a 9.97% increase from the previous year. Earnings surged 37.09% to $8.47 billion, underscoring the company’s ability to maintain profitability despite inflationary pressures and competitive challenges. Technical Analysis Despite the negative revenue and earnings reports, MCD’s stock price is trading within a bullish reversal pattern. Here’s what the technicals suggest: Immediate Support: The stock is finding support at the 38.2% Fibonacci retracement level, a critical technical indicator that often acts as a floor during pullbacks. - Resistance Point: The resistance lies just ahead of the 1-month high. A breakout above this level could sustain the bullish rally, potentially pushing the stock toward target of $319.58 (an 8.59% upside from current levels). Momentum Indicators The stock’s 2.48% gain at the time of writing indicates strong buying interest, despite the weak fundamentals. This suggests that traders are focusing on the company’s long-term growth potential and its ability to navigate short-term challenges. #Market Sentiment Analysts remain bullish on MCD, with an average rating of "Buy" and a 12-month price target implying significant upside. The stock’s resilience in the face of disappointing earnings reflects confidence in McDonald’s ability to execute its strategy and deliver value to shareholders. Conclusion McDonald’s Q4 results may have fallen short of expectations, but the stock’s rally reflects a broader narrative of resilience and long-term growth potential. While the U.S. market remains a challenge, the company’s global footprint, improving margins, and strategic initiatives position it well for future success.
NYSE:MCDLong
by DEXWireNews
Fast food restaurant stock prices can potentially declineI am cautious and afraid that fast food restaurant stocks such as McDonald, Pizza Hut, Starbucks etc. will soon see a steady decline. Looking back at history, when USA threatens tariffs on countries such as China, Canada, Mexico and Europe at large, consumers in those countries become hesitant to spend money in American fast food chain. There are too many instances back in history to refer to. Happy cautious trading to my retail friends. www.stimson.org
NYSE:YUMShort
by getdabuzz
McDonald’s (MCD): Crisis Management and Market ReactionWhat a perfect flat this is on McDonald’s. Already back in the range and finished the wave ((ii)) at the 50% Fibonacci retracement level. Far more downside is expected for $MCD. If we are right about this intra wave count, we should see the level of wave ((iii)) to be at a minimum of $258.5. The outbreak that caused the big drop was linked to slivered onions used in Quarter Pounder burgers, which affected 104 individuals across 14 states and resulted in one death. To address the crisis, McDonald’s will invest $35 million in marketing and advertising campaigns to rebuild customer trust and foot traffic. Additionally, $65 million will be directed toward franchisee support, including deferrals on rent and royalties. To recover from this significant image damage, it will likely take much time for NYSE:MCD to resolve these challenges. Therefore, it would also be valid if NYSE:MCD sweeps the range low at the level of $245 before coming back to at least the range middle.
NYSE:MCDShort
by freeguy_by_wmc
KO Coca-Cola and the E. coli outbreak linked to McDonald’sIf you haven`t bought the dip on KO: Now you need to know that Coca-Cola (KO) could see a decline due to the E. coli outbreak linked to McDonald’s, as the two brands have a longstanding partnership, with Coca-Cola products being served widely in McDonald's restaurants. Negative publicity impacting McDonald's could indirectly affect Coca-Cola by reducing in-store traffic, which may lower beverage sales. Additionally, Coca-Cola's association with fast food means that consumer sentiment shifting towards healthier options could further impact sales. If the outbreak spurs changes in public dining behavior, Coca-Cola may face a temporary decline in demand across other food service venues, potentially impacting its stock performance.
NYSE:KOShort
by TopgOptions
1
McDonald's (MCD): New setback after quarter pounder incidentOne month ago, we predicted McDonald’s would push into the 127.2%-138% range at max, and now the stock is reacting precisely as we expected. Pre-market trading shows a 6% drop following the news from Tuesday. The Centers for Disease Control and Prevention (CDC) has reported one fatality and ten hospitalizations linked to McDonald's Quarter Pounder burgers, resulting in the fast-food chain pulling the item from several menus. This incident has brought McDonald's stock back into its previous range, signaling that this wave (B) should mark the local top for now. If we are correct, we expect to see a 5-wave structure downward from here. While there could be a brief relief pump, we anticipate the stock falling below the wave (A) level of $243. We are patiently monitoring the situation, and if a favorable short setup presents itself, we will share the entry details. For now, we are watching how the news unfolds and waiting on the sidelines.
NYSE:MCD
by freeguy_by_wmc
Can a Single Onion Slice Reshape the Future of Fast Food?In a dramatic turn of events that has sent ripples through the quick-service restaurant industry, McDonald's Corporation faces a watershed moment that transcends mere food safety concerns. The recent E. coli outbreak linked to Quarter Pounder burgers, resulting in 49 reported cases across 10 states, serves as a powerful reminder of how seemingly minor supply chain decisions can cascade into significant corporate challenges. With shares plummeting 7% in after-hours trading, this crisis presents a compelling case study in crisis management, operational resilience, and the delicate balance between efficiency and safety in modern food service operations. The revelation that slivered onions from a single supplier could potentially trigger such widespread impact challenges conventional wisdom about supply chain diversification in the fast-food industry. McDonald's swift response - removing Quarter Pounders from menus across several Western states and implementing immediate supply chain modifications - demonstrates the complex interplay between brand protection and operational agility. This situation raises profound questions about the industry's approach to supplier relationships and the potential vulnerabilities created by centralized sourcing strategies in pursuit of consistency and cost efficiency. Beyond the immediate health concerns and financial implications, this crisis illuminates a broader narrative about consumer trust and corporate responsibility in the modern food service landscape. As McDonald's navigates this challenge, their response may well set new standards for crisis management and transparency in the industry. The incident serves as a catalyst for reimagining food safety protocols and supply chain resilience, potentially ushering in a new era where consumer safety and operational efficiency are not just balanced but fundamentally integrated into the fabric of fast-food operations.
NYSE:MCDShort
by signalmastermind
McDonald's (MCD): Time for a Correction!We predicted it back in March, and sometimes you have to give yourself a pat on the shoulder when things play out exactly as expected. A little over six months ago, we said that Wave (A) would likely hit $245.88, and what did we get? $244, which is less than a 1% difference from our target. After that, the stock surged by 24% to what now seems like another high. Now we find ourselves back at the range high, and we must treat it with caution. Since March, we've been hoping for this exact scenario to unfold, but we're not ready to jump into a short position on NYSE:MCD just yet! The rise has been pretty strong, and we're seeing the RSI hovering around the overbought area. Given this price level, we could either see a smaller pullback before heading higher—possibly up to the 127.2%-138% Fibonacci extension—or NYSE:MCD could fall lower after losing the mid-range level. In both scenarios, we would like to see lower prices as we still haven't concluded Wave II. We’ve zoomed in on the chart now, but whether we’re right or wrong, we’ll zoom back out to reevaluate when the time is right. This serves as the perfect reminder that good things take time 🚀.
NYSE:MCDShort
by freeguy_by_wmc
4
McDonald's Earnings Miss For the First Time Since 2020McDonald's second-quarter earnings report fell short of analysts' expectations as higher prices contributed to a decline in foot traffic and comparable store sales. Despite efforts to boost sales with promotions like the "$5 Meal Deal," the fast food giant faced challenges in maintaining revenue and profitability. Key Takeaways: - Revenue and Profits: McDonald's reported $6.49 billion in total revenue for Q2, nearly identical to the same period in 2023, but fell short of the $6.63 billion projected by analysts. Net income dropped 12% year-over-year to $2.02 billion, missing expectations of $2.24 billion. - Comparable Sales Decline: Global comparable sales fell 1% from last year, with U.S. locations experiencing a drop in foot traffic due to higher prices. Sales decreases in France and China offset improvements in Japan and Latin America. - Impact of Promotions: The recent "$5 Meal Deal" promotion provided a late-quarter boost, though its full impact will be more evident in the third quarter. Detailed Analysis: Revenue and Profit Performance In the second quarter of 2024, McDonald's revenue remained flat at $6.49 billion compared to the same period in 2023. Analysts had anticipated a growth in revenue to $6.63 billion, but the reality fell short. This stagnation in revenue was accompanied by a notable decline in net income, which dropped 12% year-over-year to $2.02 billion, compared to analysts' expectations of $2.24 billion. Comparable Sales and Foot Traffic The global comparable sales decline of 1% highlighted the challenges McDonald's faced in maintaining customer engagement amid rising prices. In the U.S., higher menu prices led to reduced foot traffic, contributing to a 0.7% decline in same-store sales. Internationally, sales fell by 1.1%, driven by weaknesses in markets like France and China, which overshadowed gains in Japan and Latin America. Promotional Efforts and Market Response In response to the declining sales, McDonald's launched the "$5 Meal Deal" promotion in an effort to attract price-sensitive customers. While this promotion only impacted the final days of the second quarter, it is expected to have a more significant effect on third-quarter earnings. Early reports suggest that the promotion has been successful, potentially continuing into August to sustain momentum. McDonald's CEO Chris Kempczinski emphasized the company's commitment to delivering "reliable, everyday value" and accelerating growth drivers such as chicken and loyalty programs. Despite these efforts, the broader economic environment and consumer price sensitivity have posed substantial challenges. Market Reaction Shares of McDonald's have experienced a 15% decline in value so far this year. However, the stock showed a slight recovery, up 3.77% in Monday's trading session following the earnings announcement. This reflects a cautious optimism among investors that the company's strategic initiatives may eventually pay off. The stock has a Relative Strength Index (RSI) of 57.83, indicating potential for further growth. Adding to the potential growth is the bullish flag pattern depicted on the chart. Conclusion McDonald's second-quarter performance underscores the difficulties faced by the fast food industry amid rising prices and shifting consumer behaviors. While the "$5 Meal Deal" and other strategic initiatives show promise, the company must navigate a complex landscape to regain growth and profitability.
NYSE:MCDLong
by DEXWireNews
MCD 1H Swing / Investment Conservative Trend TradeConservative Trend Trade + long impulse + expanding T2 + volumed 2Sp- + weak test + first bullish bar closed entry Calculated affordable stop limit Take profit: 1/3 1 to 2 R/R 1/3 daily T1 level 1/3 monthly 1/2 Daily trend "+ long impulse + expanding T2 + volumed 2Sp- + weak test + first bullish bar closed entry" Monthly trens "+ long impulse + volumed T2 level + support level + 1/2 correction + biggest volume Sp + weak test" MCD @NYSE Sell Limit 261.99, GTC Sell Stop 250.94 LMT 253.18, GTC Sell Limit 257.63, GTC OCO 2A: Sell Shares of MCD Limit at $271.49 (Good 'til Canceled) OCO 2B: Sell Shares of MCD Stop at $250.94 Limit at $251.94 (Good 'til Canceled)
NYSE:MCDLong
by MishaSuvorov
SBUX gets another earnings miss SHORTSBUX on the dialy chart may be another candidate to short while the general market remains challenging in the face of the loss of anticipated rate cuts and ongoing geopolitical risk. SBUX has been trending down for nearly six months and the earnings miss add emphaisis to the trend. At this juncture, there is nothing to suggest a turnaround. I am adding SBUX to my short list. I will look for pivot highs on a lower time frame and average into an overall position in pieces.
NASDAQ:SBUXShort
by AwesomeAvani