MCD breaking meaningful supportMcDonald’s Corp. (MCD) presently approaching meaningful long-term support, able to absorb monthly selling pressures.
From here, (MCD) can rotate higher to our next notable resistance level, eliciting gains of 10 - 15% over the following 3 - 5 months, and gains of 20% over the following 5 - 6 months.
Inversely, a weekly settlement below key support would place (MCD) into a sell signal where losses of 20% would be expected over the following 3 - 5 months.
MCD
McDonald's: Unwrapping the Unique Investment Opportunity
Unwrapping the Unique Investment Opportunity: The McDonald's Story
McDonald's, the golden arches that symbolize fast food worldwide, may not shine with the glamour of tech giants, but it offers a distinct investment opportunity. Beyond its role as a fast-food behemoth, McDonald's operates on a unique model that sets it apart from traditional restaurant businesses. In this article, we'll uncover three key facts about McDonald's stock that make it an intriguing investment prospect.
McDonald's Is Not What It Seems
While many might see McDonald's as just another restaurant chain, a closer look reveals a different story. In reality, McDonald's functions more like a real estate investment trust (REIT) masquerading as a restaurant company. The company owns the physical buildings housing its franchisees' operations and collects rental income from these properties. Additionally, McDonald's takes a percentage fee based on sales and an initial fee when a new franchise is established.
These real estate-related activities contribute significantly to McDonald's income, anchoring its success to the stability of the real estate market. The steady stream of rental payments also provides a reliable source of income. This unique structure shields McDonald's from the volatility of the restaurant industry, helping it weather industry ups and downs more gracefully.
McDonald's Financial Health
In the first half of 2023, McDonald's reported impressive revenue exceeding $12 billion, with a remarkable 62% stemming from its franchise operations. The remaining 38% is attributed to the 5% of restaurants it directly owns.
What's particularly intriguing is that, despite company-owned restaurants accounting for slightly over half of its total expenses, they contributed only a fraction to its operating income, which totaled approximately $5.6 billion, primarily driven by its franchised locations.
After accounting for interest, non-operating expenses, and taxes, McDonald's achieved a GAAP net income of $4.1 billion in the first half of the year, marking a significant 78% surge compared to the same period the previous year.
McDonald's also stands out as a dividend payer, offering an annual payout of $6.08 per share, resulting in a dividend yield of 2.3%, surpassing the S&P 500's 1.6% yield. Notably, McDonald's has consistently increased its dividend annually since 1976, signaling that rising profits are likely to fuel further dividend growth.
McDonald's Presents an Attractive Valuation
Beyond its financial prowess, McDonald's offers an appealing valuation. Excluding the brief dip in early 2020, its price-to-earnings (P/E) ratio of 24 is near its five-year lows for this earnings multiple. This valuation places it in a similar range to peers like Restaurant Brands International and Yum! Brands.
This relatively low P/E ratio enhances McDonald's attractiveness, especially considering its consistent dividend growth and steadily rising profits, which have contributed to its outperformance compared to both the S&P 500 and its industry peers.
Conclusion
McDonald's success story is rooted in its astute business strategy. By focusing on real estate ownership and a franchise-centric model, the company has not only bolstered its revenue but also established a remarkable degree of stability in an otherwise unpredictable industry.
This unique approach has resulted in consistent growth in revenue, net income, and dividend payments. Coupled with its comparatively low P/E ratio, McDonald's emerges as an attractive option for investors seeking opportunities in the restaurant sector or those searching for a reliable source of dividend income.
In summary, McDonald's has effectively harnessed its distinctive business model to create a compelling investment proposition, making it a stock worthy of consideration for discerning investors.
McDonald's Corp: Bearish Deep Crab with Double PPO ConfirmationWe have a Bearish Deep Crab with a PPO Confirmation Arrow and a Circle with MACD Bearish Divergence and have broken below the faster moving EMAs. I would next expect this to make at least a 61.8% Retrace, which would take it back to about $185.
This makes the third major Dow 30 Stock that has signalled something ultra bearish like this; the other two being UNH and MSFT, which can be seen below:
We are likely looking at a major correction coming to the Dow Jones Industrial Average very soon.
MCD Entry, Volume, Target, StopEntry: with price above 298.80
Volume: with volume greater than 2.12M
Target: 318 area
Stop: Depending on your risk tolerance; 292.42 gets you 3/1 Reward to Risk Ratio.
This swing trade idea is not trade advice and is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
Can CMG recover from the post earnings drop?CMG had earnings today which were a beat but apparently less than expectations
of investors and traders. On the 15-minute chart, the indicators support a reversal
with a bounce on the dual time frame RS lines showing a bit of bullish divergence.
Decelerating bearish momentum on the MACD with lines converging under the histogram
suggests a reversal is impending. Further, the mass index indicator is in the reversal
zone but not yet triggering the signal with a drop below the zone. I will take a
long trade of CMG. They say trade what you know, My local CMG is always buzy and
a love either food. I believe that CMG is ready to give me a big rebate on my
patronage. I will take a call option expiring 8/18 striking $2100. I expect to realize
a large profit having done a similar trade on CMG more than once in the past. The expected
premium of $7300 will be about $700 of risk given a stop =loss but I expect a reward
of 4-6 times that if not more.
MCD McDonald's Corporation Options Ahead of EarningsIf you haven`t sold MCD Head and Shoulders here:
Or reentered here:
Then analyzing the options chain and the chart patterns of MCD McDonald's Corporation prior to the earnings report this week,
I would consider purchasing the 300usd strike price Calls with
an expiration date of 2023-8-18,
for a premium of approximately $3.75.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
MCD short opportunityNot financial advice.
When price reaches $290.32, i expect to see a strong rejection. Price could reject to one of three levels
$286
$283.63
or $273.26
Nothing is guaranteed, but I've posted further analysis on the chart for those interested. This is all on a daily timeframe, so act accordingly.
It should be noted that i am not looking to see NYSE:MCD create a lower low and initiate a change of structure, this is simply an accumulation type move following the previous higher low.
MCD are you rdy for short sell sell 🧨Wow, wow, after a few years, what will happen in McDonald's big company?
McDonald's company has taken enough of its profits from the stock market and Wall Street. The global economic recession will start soon. Do you think that 70% of McDonald's shares will not fall? I will tell you.
Be prepared for the fall of McDonald's shares. I think you should sell your shares today and buy and eat a McDonald's sandwich and laugh at the fall of the company's head.
The targets he will see start at $219.20, then move to the next target of $127.72, and that's where everyone says it's over, but I say he will see the third target, and that target is $91.73. Don't sell $35.
McDonald's:A Promising Investment Option Amidst Economy DownturnThe nation's slow economic growth rate of 1.1% in the first quarter and increasing interest rates and spending cutbacks indicate that a recession may be inevitable. Nevertheless, McDonald's appears to be a resilient company that can withstand the economic downturn. Despite price hikes, the fast-food giant has demonstrated strong sales, making it a worthy addition to any investment portfolio.
McDonald's impressive same-store sales growth rate of 12.6% during Q1 2023 indicates robust demand. Even during the Great Recession, the company outperformed the S&P 500 and earned positive returns. While the company's shares are currently trading at a high earnings multiple, its cost-cutting efforts and potential future earnings growth suggest that the stock may still prove to be an excellent long-term investment option. Additionally, McDonald's dividend provides a reliable source of recurring cash flow for investors. Overall, McDonald's stock may be one of the most promising investment opportunities during a recession.
McDonald's Reaches Upwards Sloping Resistance LineHere we are looking at MCD on the Daily TF…
As you can see, MCD has run into its macro resistance, at a current price of 298.47. This is the third time MCD has tested this upwards sloping resistance line. Each of the previous two tests led to a sharp sell-off.
Not only is MCD reaching this upwards sloping resistance, but it is also very over extended. For this reason, my bias is bearish, and we can likely expect a sell-off from this level.
I will continue to monitor this chart, and will update you all as I see fit. Trade safely!
Cheers!!
4/27 Watchlist + NotesSPY - Saw more downside as we had predicted last night. Made some solid range to the downside. I am expecting tomorrow to be a repeat of today or an inside day. We are reaching weekly downside exhaustion so I would say there is no reason to not be bearish... yet. But tomorrow could be a day of consolidation/retrace since we have had such big drops the past two days.
Watchlist:
MCD - 3-1
BABA - 2-1
Main Watch:
MCD - Looking for a heavy drop tomorrow. Seeing a Pivot Machine Gun pattern here that could play out nicely if sellers step up
Previous main watch:
W - Broke to the downside and banked. Solid trade overall. Pretty much filled all downside room I saw on my charts.
Watchlist Stats:
1/3 SPY Predictions
1/3 Main Watch Plays
Personal Stats:
0/2 On The Week
Overall Red
- Busy today with finals as I near the end of my semester at college.
- Wasnt able to trade because of this and probably wont be able to trade tomorrow either.
- Scalped some forex after hours but nothing serious
McDonald’s: Dig In! 🍴🐻After a long period of bullish appetite, the bears should dig in now. McDonald’s has thoroughly tapped the magenta-colored zone between $291.18 and $287.84 and also touched at the green zone between $294.18 and $290.10, completing wave in magenta as well as wave B in turquoise. Now, the share should drop out of the zone-compound in magenta and green and fall back below the mark at $282.43. Thus, the stock should gain enough downwards momentum to make it below the support at $259.51, where it should finish wave C in turquoise and wave (2) in magenta before turning upwards again. There is a 35% chance, though, for McDonald’s to continue climbing, leaving the green zone on the northern side. In that case, we would consider wave alt.(2) in magenta to be already finished.
MC DONALD'S TRADING LESSONSStory time…
One of the greatest success stories of all time, is with the company which is based on the glorious golden arches we still see today.
Mc Donalds…
It all started in 1940 where, two brothers, Maurice and Richard “Dick” Mc Donald’s made a small fortune selling hamburgers in San Bernardino, California…
They took a product and an idea and turned it into a fast, convenient and consistently profitable business.
Once they mastered their strategy and system then they introduced Ray Croc (a shrewd American businessman) into an agreement to build more Mc Donalds…
However, he barely made enough profits to sustain, find more franchisees and even pay off his expenses…
That’s when Harry Sonneborn came about where he made Ray Croc realise, he was in the land business rather than the restaurant business…
Ray Kroc explained…
“Pretty simple, really. Franchisee finds a piece of land he likes, gets a lease, usually 20 years, takes out a construction loan, throws up a building, and off he goes.”
Sonneborne then said:
“You don’t seem to realize what business you’re in. You’re not in the burger business. You’re in the real estate business.”
This conversation lead to the global expansion of McDonald’s, turning it into the most successful fast food corporation in the world.
In this article, I’m not going to talk about Ray Kroc, but instead how the brother’s starting concept applies to trading.
Here are three lessons I learnt from Mc Donald’s Success
#1: Less is more…
The brothers were geniuses from the start…
When something didn’t work, they threw it out… When something showed to work, they harnessed it, optimised it and improved it…
They did this with data.
The brothers took sales data to compare which products were making more money.
They found that 80% of their sales in the last 3 years came from simple burgers.
Each burger was made with precise ingredients.
Any deviation and this caused sales to drop.
The rest of the 20% were drinks and barbeque.
So the brothers made their life easy and got rid of the barbeque pit completely.
They also cut their menu down from 25 items to just 11 items.
It mainly had
Burgers
Fries
Milkshakes and
Soft drinks
They said let’s do less of what’s not helping sales and focus on what is making the most revenue.
Once they got rid of the barbeque pit the brothers later on systematised the burger making process.
So how does this relate to trading…
Less is more is one of my most powerful quotes when it comes to trading…
You need to cut out a LOT of data to maximise your returns…
Find one or two systems that suit you.
Minimise the number of markets, time frames and charts to look at.
Cut out unnecessary indicators that conflict with the systems signals and frequency.
Choose a certain time that works best for your system.
Stick to 1 or two financial instruments to trade.
Only have 1 or 2 or max 3 trading accounts with reason.
It will take time and effort on your side to cut out what needs to be cut, but you won’t regret it in the long run…
As Mc Donald’s did… Take a product improve it drastically then sell it to the masses.
#2: Find a system to repeat over and over
With Mc Donald’s did you know…
They took a tennis court and drew out the compartments of making a burger.
They then orchestrated it with their employees until the flow and speed was at the most optimised level.
Once they found a winning system, reduced the time to make a burger and optimise the process – they were able to even drop the price to appeal more demand…
At the time, they could drop the burger to 15 cents…
With trading, you know this…
You’ll need to find, adopt, follow and repeat your turn-key system.
It doesn’t matter whether it takes you 2 months, 2 years or even 7 years to get right.
Once you have it, you’ll be able to generate consistent results year in and year out.
Just like the cycle of burgers, you’ll have your very own consistent cycle of success through trading…
Also, with your one system you’ll be able to optimise it and improve it when conditions change…
This brings us to the third lesson…
#3: “We love to see you smile”
This was one of Mc Donald’s campaign they used from 2000-2003, which has stuck…
Not only does Mc Donald’s keep to their winning formula, systems, products and manner – but they also adapt to change…
They continue to offer new items on the menu’s as time’s change…
From Happy Meals, Toys, Lollipops, Café’s, Ice creams, food cultural adaptions to even Vegan food… They think of everything to adapt to change…
BUT! They don’t stop offering their winning products that bring in revenue.
With trading you need to also evolve as a trader and adapt to change.
Sure, your system will remain consistent.
Sure, your risk management won’t change…
But there are certain elements that require change such as…
New markets:
You might want to incorporate your system with new markets i.e. AI, Electric Vehicles, Metaverse, Cannabis, Energy alternatives, Crypto, NFTs. AI (with ChatGPT, DALLEE, BING) and so on…
New instruments:
Also, we might need to evolve from the current financial instruments we’re trading… Once day, CFDs and Spread Betting might be a thing of the past. I personally have evolved from shares, warrants, futures to ETFs. You never know what will be next…
New automations:
We might soon have robots and AI to use out system to find trades and execute them.
You get the point…
If you want to be successful with trading you have to understand the power of systems to repeat…
This way the system will do the job for you…
Next time you’re at Mc Donald’s, you’ll see what I mean.
MCD Mcdonalds is now at its all time highAs the market leader in the fast food industry, McDonalds enjoys global brand recognition.
It is a slow but steady gainer pays consistent dividends and always has buyers when a seller
lets some shares go at a reasonable price.
On the weekly chart over five years MCD is now at the all time high and weathered the
COVID era and recent market gyrations quite well. The EMA Cloud and Ichimmoku cloud
indicators have consistent slopes tracking in parallel. MCD is consistently above
the anchored long term VWAP showing buyers are in contro. It often uses the VWAP plus
one standard deviation for support. Fundamentally, if a recession hit when eating
customers will be looking for value as a high consideration.
My long term call options average 45% in monthly return. I will buy one more each
time there is a red engulfing candle on the daily or 4H chart.
see also money.cnn.com
MCD - BROKE Falling Trend Channel- MCD has broken through the ceiling of a falling trend channel in the medium long term.
- The price has broken through the ceiling at 272 of a rectangle pattern.
- A decisive break will signal a further rise to 286 or more.
- There is no resistance in the price chart and further rise is indicated.
- In case of a negative reaction, the stock has support at approximately 260.
- The RSI curve shows a rising trend, which could be an early signal of the start of a rising trend for the price as well.
- Overall assessed as technically positive for the medium long term.
*EP: Enter Price, SL: Support, TP: Take Profit, CL: Cut Loss, TF: Time Frame, RST: Resistance, RTS: Resistance to be Support LT TP: Long Term Target Price
Verify it first and believe later.
WavePoint ❤️
MCDonalds Analysis + Trade Setup
In my opinion, this is one of the best sales deals on the current market.
In the monthly chart, this stock has a 5-wave trend, which is currently the end of wave 3 and we are at the starting point of wave 4. This wave will be in the form of A B C and it will be a big and rapid wave. The reason for its rapidity is the end of a 5-wave in the weekly time frame and a 5-wave in the daily time frame.
It is worth noting that wave A will start with a high initial acceleration and then take an oscillatory form with large fluctuations
Note: If you buy a transaction at this price, please be patient and focus more on your psychology so that you don't exit the market when emotional fluctuations start and save your profit completely.
Be successful and profitable.
The Daily Key Levels to Watch for MCDOn the daily chart, MCD is trading within a descending channel extending since October of the year 2022 and also trading on both sides of the crucial EMA-50, and around the swing level at $267.98 (Fibonacci level 78.6%). The breach above the previous two lines usually leads MCD towards testing the top of the descending channel, as well as retesting the support below the channel when breaking below them, so they are critical lines that may determine the trend within the channel.
On the bullish side, if MCD managed to breach above the descending channel and hold above it, then the level of $275.71 would be the initial target for the breach, and a further breach above it might also may signal the potential upcoming upside movement after the breach.
Also, the levels between 279.90-281.67 would also be the next targets for MCD. If the MCD also managed to stabilize above the previous targets, then the Fibonacci extension level near the $300 level would be the farthest target, and that maybe followed by pullback to the level of 281.67.
In the bear case, a breakdown below the crucial support area between EMA-200-100 as well as the dynamic support level and the Fibonacci level of 61.8% (the orange shaded areas), may invalidate the previous bullish hypothesis, and may push MCD to decline further towards the levels of $251.75-249.67.






















