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.
Mcdonalds
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.
McDonald's stock presents a small level double top shape!McDonald's stock presents a small level double top shape!
This figure shows the weekly candle chart of McDonald's stock from the end of 2019 to the present. The graph overlays the low point of 2020 against the golden section. As shown in the figure, the high points of the past two months have been suppressed by the 2.618 position of the golden section in the figure, and the low point in early June has just stepped back on the 2.382 position of the golden section in the figure! So, in the future, we can use these two positions (280-299) as the key ranges for McDonald's stocks, with a fluctuating approach within the range and a unilateral breakthrough approach outside the range!
🚀GRIMACE to the MarsTake a closer look at $GRIMACE right now
Short-term local forecast
This trading idea is based on a commonly observed behavior of meme coins. After an initial surge, the coin tends to consolidate for a few weeks, undergoing redistribution and position accumulation. Here are some arguments in favor of the asset's potential growth towards the first target ($10):
After trading in a deep discount zone, significant players start accumulating positions. We can observe a gradual reduction in local liquidity from decreasing lows.
Referring to the basics of technical analysis:
A Wyckoff pattern is apparent, with an UpThrust (UT) observed - a liquidity shakeout from the previous high. This forms new liquidity for further growth. Next, it is necessary to test the support in the form of an OB (Overbought) area. Here, a Spring will be formed - a local liquidity shakeout before mark-up. It is characterized by lower volumes, and the decrease to the specified values may take some time.
Local reverse bull divergence and direct bear divergence in local highs indicate buyer weakness, providing another argument in favor of a short-term asset devaluation.
GRIMACE/USDT 4H. New doge incoming. Idea + Chart.Hello everyone, in this idea i will try to share the ideology of Grimace and also we will look at chart. LFG.
Grimace is the new coin which was recently listed on MEXC. The ideology of the project is very promising and here's why:
1) Big community(over 30k people community).
2) Potential Hype with McDonalds(Think about it).
3) New project(big potential for pump).
Now let's move a bit to the fundamentals of the token. Once upon a time McDonalds had a "beef" with Tesla, in which it was decided, that McDonalds starts to accept Doge as a payment only if Tesla starts to accept Grimace.
From that moment on people started to create Grimace Tokens, chasing the hype, but no one treated it as serious as Odyssey...
This is the only Grimace token with over 2 millions $ capitalization. The huge work is being done in social networks. And the CEO is building hard. It's an open information.
Now let's move to the chart. The full chart can be found on dexscreener. Mexc contains only part of the full chart.
At the start of trading history we saw a little pump, after which the correction started. The price dropped down 66.14%(66/4) and reached 4.666$ price(exact numbers on MEXC).
Something similar was on Apt chart at the listing. Pump at the start, then drop 66%, a little accumulation, final capitulation and then pump 500%+ in 30 days.
After reaching 4.666 mark accumulation channel started to form, exactly as it happened on APT chart. Now, on Grimace, the channel is forming for 12 days. The amplitude is 72% for the "wide" channel and 42% for the "inner" channel.
You might also consider that there might be a manipulation to collect the liquidity. In this case, as almost on every coin, it's about 25% potential drop below support zone - this will be enough to collect the paper hands. Hence it's about 3.5$ to be reached potentially(shown on chart).
But it might also not happens. Only if market gives an opportunity to do so. Though at the beginning of trading history you, as MM, ain't interested in dropping price too low and giving people the opportunity to enter the market at cheap prices.
You might also notice on chart that the downtrend line was formed at the start. Recently it was broken up and now the retest is taking place(shown on chart). The volume is starting to come in right now.
Potential Double bottom might form with the base of 72%.
Consider also the next thing - MM moves the price according to the market cycles(best case scenario), so he's not interested in pumping price "tomorrow". And probably he is not interested in giving money away just for free. So be patient and use ur own head. DYOR.
Thanks for reading till the end guys. Long time no post, but coming with fresh thoughts. Profits to all.
The potentials here might be taken conservatively. ATH as the potential target. 13-15$ range. Then it's an open space, but relying on Fib, the target of 23-25$ zone might be also mentioned.
Potential support zone also shown.
$GRIMACE IS A NEW BIG ROCKETToday I will share with you one theory regarding the adoption of cryptocurrencies by large corporations and how McDonald's is moving towards the adoption of DOGE through the MEXC:GRIMACEUSDT coin invented by them.
On January 25, 2022, Elon Musk tweeted the following:
“I will eat a happy meal on tv if @McDonalds accepts Dogecoin”
On 01/26/2022, the official @McDonald's account replied to @elonmusk tweet: “only if tesla accepts grimacecoin”.
06/06/2023 – the official twitter account of McDonald's announces Grimace’s Birthday.
Would it be a coincidence if I said that Grimace's birthday and the listing of the token on MEHS were on the same date? July 12, 2023. McDonald's hasn't mentioned its character since 2018 before this day and now has launched a full-blown promotion?
Okay, you'll say it's a typical memcoin created on a hype wave. And I'll say that the token was created in February 2023 and the development team didn't just create a sht.
The coin was released with an 1,000,000 supply on the dogechain network. It had a capitalization of 13 mln (at the time of listing) and 12mln even before listing. Shitcoin?
Okay, here are a couple more examples of why it's a gem:
The team developed their swap tool the moment KibbleSwap stopped working and did it in 24 hours to ensure they could buy and sell tokens on the dogichain network for their users.
The razrbochtik team created an earn-2-play game and has already paid out over $25,000 in 3 weeks
The community is growing and rewards. More than 3 contests and 2 airdrops amounting to more than $150,000 were held in a month.
The project has tokenomics, whitepapper and live twitter. The team has announced NFT, burning and steaming. Now take a look at the chart. In the support zone interest from buyers is not just from whitepappers who have been buying from the bottoms and made x1000, there is live buying going on in this range, which the market maker is holding back.
Also, the team announced new listings, I am sure that on the tier1-2 exchange we will be able to break through the resistance of the phyb 0.362 and fly into the space.
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 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!!
TARGET Reached with MC Donalds at $289.50Falling Wedge formed on MC Ds. The reason it's a Falling Wedge, is because it lasted for a few months.
Then the price broke up and within a few weeks, headed straight to the first take profit at $289.50.
Now the price is still showing strong Bullish bias. And we need to wait for the market to consolidate and form the next pattern.
I'll let you know!
In the meantime here are some super interesting facts about Mc Donalds because I'm bored and I loved the movie "The Founder"
McDonald's was founded in 1940 in San Bernardino, California by Richard and Maurice McDonald as a barbecue restaurant.
The first McDonald's franchise was opened in 1955 by Ray Kroc in Des Plaines, Illinois.
The iconic Golden Arches logo was introduced in 1962, replacing the previous Speedee character.
The Big Mac was first introduced in 1968 and quickly became one of the chain's most popular items.
McDonald's is the world's largest restaurant chain, with over 38,000 locations in more than 100 countries.
McDonald's is the world's largest toy distributor, with Happy Meal toys being a popular item for kids.
The Filet-O-Fish sandwich was created in 1962 to cater to Catholic customers who abstain from meat on Fridays during Lent.
McDonald's has its own university, Hamburger University, which trains managers and executives for the company.
The Big Mac Index, created by The Economist, uses the cost of a Big Mac in different countries to compare the relative purchasing power of different currencies.
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.
Mc Donalds showing strong upside with a Falling Wedge - SMCFalling Wedge has formed on Mc Ds
The price broke up showing strong upside.
7>21>200 - Bullish
RSI >50 = Bullish - Higher lows
Target $289.50
SMC:
Sell Side Liquidity was swept at the very strong support. Once this happened, Smart Money bought into the orders pushing it up.
Now it's clearly showing strong upside to come.
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.
Three stocks to watch during the ‘January Effect’ January has been historically a good month for stocks as some investors reenter the market after selling some of their holdings at the end of the year. The bullishness at the start of each year is dubbed the ‘January Effect’.
On January 6, US stocks staged their first big rally of the year, with the Dow Jones Industrial Average closing 2.13%, the S&P 500 jumped 2.28% and the Nasdaq Composite gaining 2.6%.
It marked the best day for the Dow and the S&P 500 since November 30, 2022, and for the Nasdaq since December 29, 2022.
The rally could also be triggered by investors using their year-end cash bonuses to splurge into risky investments in January. With this in mind, we have rounded up three US stocks to watch in January:
Amazon.com
JP Morgan recently stated that Amazon remains its top internet pick, forecasting that the e-commerce giant will overcome macroeconomic headwinds by 2023. However, Amazon is no exception to the wave of layoffs in the tech space over the past year. The tech behemoth disclosed last week that is laying off 18,000 jobs, more than previously planned.
“Several teams are impacted; however, the majority of role eliminations are in our Amazon Stores and organizations,” Amazon CEO Andy Jassy said in a blog post on January 5.
But it is worth noting that Amazon remains the United States’ second-largest private employer next to Walmart. Amazon’s stock jumped 2.9% on Tuesday and 5.8% on Wednesday.
Tesla
Tesla recently applied to expand its Gigafactory in Texas with a $775.7 million investment, Reuters reported, citing filings with the Texas state department of licensing.
The investment plan comes despite Tesla missing delivery estimates in the fourth quarter of 2022. The company delivered 405,278 electric vehicles in the three months ended December 31, up 40% from a year earlier, but missing Elon Musk’s 50% growth target.
Tesla’s stock is also susceptible to its volatile CEO. The billionaire — who recently made it to the Guinness World Records for suffering the largest loss of personal fortune in history after shedding about $182 billion since November 2021 — has drawn attention from the federal government again after tweeting about disabling driver monitoring. The National Highway Traffic Safety Administration said the issue is now part of a wider investigation into accidents involving at least 14 Tesla vehicles while using the Autopilot driver assist system.
Tesla rose 3.7% on Wednesday after falling by 1.6% on Tuesday.
McDonald's
McDonald's Corp. (NYSE: MCD) is another stock to watch in January after the largest fast-food company in the world announced that it is planning a restructuring that would result in corporate job cuts. The company told employees in a memo that it will “evaluate roles and staffing levels… and there will be difficult discussions and decisions ahead.”
In the quarter ended September 30, 2022, McDonald’s net income fell 8% year over year to $1.98 billion, or $2.68 per share, as revenue slipped 5% to $5.87 billion.
MCD closed up 0.6% on Tuesday but closed flat on Wednesday.
3 Amazing Lessons I learnt from McDonaldsI love McDonalds.
There was a time where I was ranking different burgers from around the world. UK, France, South Africa, Dubai, America, Switzerland and Greece.
And I only ranked about 4 burgers an 8 out of 10.
I know you’re going to hate but…
McDonalds Big Mc remains one of them I ranked 8 out of 10 – Delicious!.
Anyway, so I love the burger, I love the story – if you’ve seen “The Founder” movie.
And I love the lessons learned from the success story.
And since 2013, I always enjoy writing articles on how other companies, entities and even individuals can teach you indirectly about trading.
McDonalds is the one in the spot light for today!
3 lessons I learnt from McDonalds!
The fast-food giant has been able to achieve massive success by keeping things simple, sticking to a proven system, and adapting to changes in the market. These same principles can be applied to trading the financial
Lesson #1: Less is more…
The company has built its success on a relatively small menu of simple, easy-to-understand options. Also the way to make the meals are so simple with easy ingredients you probably have at home.
Well, traders can achieve better results by focusing on:
• Small number of markets or securities
• One or two systems
• One or two time frames
• One to three money management rules
• Less time trading and more time holding
Lesson #2: Find a System to Repeat
The company has built a highly efficient and repeatable system for making and delivering food.
Remember the scene in the movie “The Founder” where Ray Croc organised his system within a tennis court until mastered?
It’s simple, it works – and it’s never died out.
This has allowed them to replicate their success across thousands of locations worldwide.
With trading, you should also look for a system that you can repeat and stick with it.
I mean, by now my MATI Trader System – must feel like child’s play to you because of how I have taught you the system in and out. And I have shared with you hundreds of trade line ups already with Trading View.
And with you seeing it the system everyday, it must feel second nature for spotting a trade by now right?
Well, just like Rocket Science isn’t rocket science to a rocket scientist – That’s why you feel that way about my MATI Trader System…
And if you have a system that you swear by, you’ll feel the same way I do.
This can help you to avoid the pitfall of constantly switching strategies and missing out on long-term gains.
Lesson #3: Adapt to Change
McDonald's has also been able to adapt to changes in the market, such as:
• Environment concerns
• Consumer demand for healthier options
• Relevant and trendy toys in Happy Meals
• New neutral colour style restaurant catering to all nations and cultures around the world
• More options for vegans and vegetarians
They have and has been able to stay relevant and successful for decades.
Similarly, traders need to be able to adapt to changes in the markets, whether it:
Adding new markets to your watchlist
Adjusting your Risk to Reward during favourable and unfavourable environments
Shifts in economic conditions or changes in consumer preferences.
This might mean adjusting your trading strategy slightly or seeking out new opportunities in different markets.
You need to be able to adapt to change which is crucial for long-term success in the financial markets.
And so, McDonald's has been successful by keeping things simple, sticking to a repeatable system, and adapting to change.
Apply these principles to your own trading and you’ll find trading to be a walk in the park in the medium to long run…
Do you like McDonalds and what would you rate the Big Mc? I won’t judge.
Trade well, live free.
Timon
MATI Trader
(Financial trader since 2003)






















