McDonald's CorporationKey idea's supporting arguments:
• The decline in stock prices presents an excellent opportunity to open new positions.
• The company aims to enhance its value proposition by offering reasonably priced meals and modernizing its stores.
• The company’s valuations appear to be moderately positive.
Investment thesis
• Causes of the Recent Decline. McDonald’s shares dropped on Wednesday following a report from the Centers for Disease Control and Prevention about an investigation into an E. coli outbreak linked to burgers sold at McDonald’s in 10 states. NBC News reports that about 50 people have fallen ill, with 10 hospitalized and one elderly person with multiple medical conditions having died. The investigation is ongoing; however, McDonald’s has tentatively identified chopped onions added to the quarter-pound burger as the source of the outbreak (other burgers use different types of onions). Preliminary evidence from the FDA suggests that Taylor Farms might be the supplier of the contaminated onions. Historically, E. coli outbreaks affect a number of people, typically ranging from a few dozen to a few hundred (with a notable case involving a few thousand people in Germany). Considering this, we expect a transient impact on attendance and financial performance. So, other factors driving MCD should be considered.
• Local Demand Momentum. After weak traffic in the second quarter of 2024, market estimates for comparable sales in the third quarter have slightly improved, moving to -0.6% currently from -0.8% at the end of September. We believe that management will continue to focus on maintaining market positions in the short term. For instance, the $5 (four-component) offer has been extended to December, and temporary promotions like Boo Buckets and Crocs Happy Meal have been announced recently. It is also important to note that the market, based on consensus forecasts, anticipates the momentum of capital expenditure growth to continue into 2025 (+9.6% y/y) and 2026 (+17.2%). Part of these expenditures will be dedicated to opening new restaurants, with the company’s forecast assuming an increase from 41k restaurants in 2023 to 50k by 2027. The rest will be used to modernize existing locations, which could enhance the value proposition for customers. Additionally, there is market speculation about McDonald’s creating a permanent reduced-price offering and reintroducing menu items like the Snack Wrap in 2025.
• Valuations. The company’s valuation is neutrally positive, with a forward P/E multiple of 24, compared to the 5-year average of 24.7.
• Technical Outlook. Technically, the situation is favorable for growth: the $297-$301 range served as a resistance zone, and if the stock price remains above this level, a continued ascending trend can be expected.
The target price for the stock is $338, the recommendation is ‘Buy’. Stop-loss is recommended to be set at $277.
Trade ideas
McDonald's (MCD) Stock Trades Below $300McDonald's (MCD) Stock Trades Below $300 Ahead of Earnings Report
The $300 level has proven psychologically significant for McDonald’s (MCD) stock:
→ In summer 2023, bullish investors failed to push the price above this mark, leading to a decline from $298 in July to $246 by October.
→ Again, in January 2024, the price briefly surpassed $300 but quickly dropped, eventually falling to $245 by July.
This autumn, it appeared the level had been breached when an uptrend (highlighted by the blue channel) lifted MCD above $315. However, reports of customer food poisoning incidents hit the news, causing MCD’s stock to plummet to $295 on October 23, making the orange channel more prominent in the technical analysis.
Analysts have subsequently downgraded McDonald’s ratings:
→ Guggenheim’s Gregory Frankfort downgraded MCD from “Buy” to “Neutral” on October 23, setting a target price of $285.
→ Baird’s David Tarantino followed suit, lowering his rating from “Outperform” to “Neutral” and adjusting his price target from $320 to $290.
Will MCD stock be able to reclaim the $300 mark? Much hinges on the company’s earnings report due out today, with analysts forecasting:
→ Quarterly earnings of $3.20 per share, a slight rise from last year’s $3.19 per share.
→ Quarterly revenue at $6.82 billion.
If investors react negatively to the report, it could push MCD below the critical $300 level and trigger a bearish break in the uptrend established since July.
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Order Blocks 303Hint: McDonald's earnings report on Tuesday
From a technical perspective, McDonald's has broken the neckline, leading to short-covering and a rebound. It may either shift from an uptrend to a downtrend or enter a consolidation phase. The 303 level presents a good shorting opportunity.
MCD McDonald's Corporation Options Ahead of EarningsIf you haven`t bought MCD before the previous earnings:
Now 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 290usd strike price Puts with
an expiration date of 2024-11-15,
for a premium of approximately $5.85.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
McDonald's CorporationHello,
Daily chart.
With a Fibonacci retracement, we arrive at the 0.382 zone.
The price is still above the 200-period simple moving average.
The chart shows the volume accumulation zones with the ranking.
A file to watch for me, but don't panic for now.
Make your opinion, before placing an order.
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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.
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.
McDonald's sues meat giants for price manipulationMcDonald's - NYSE: MCD , has sued major meat companies, including JBS - BVMF: JBSS3,), Tyson Foods - NYSE: TSN, Cargill - (private, not publicly traded) and National Beef - (private, not publicly traded) accusing them of manipulating meat prices since 2015. According to the lawsuit, these companies would have intentionally reduced the supply of cattle to increase prices, which has affected McDonald's, raising the cost of its hamburgers. The fast food chain is not only seeking compensation for cost overruns, but is also asking the courts to put an end to these anti-competitive practices.
This type of accusations has already appeared in the past for these companies, facing lawsuits from producers and consumers. The outcome of this case could significantly influence meat markets and the food industry in general.
Highlights:
• McDonald's alleges price manipulation. It could affect the Q3 results presentation (10/29/24) which could send the company's shares to new highs. In any case DCM estimates for this third quarter seem to be higher than the previous quarter. Always the holiday period usually results in better results for restaurant companies.
• Companies involved: they are giants of the U.S. meat sector.
• Potential effects on meat markets. If the trial goes in favor of McDonald's, this could improve its balance sheet.
Technical aspect of McDonald's:
In recent weeks it has been recovering its price to the high zone since the last Q2 earnings release, higher than the Q1 quarter. The RSI indicator at 63.89% slightly oversold and using the Larry Williams indicator we see that the uptrend could continue for a while as it is still in the area of 122 points.
Ion Jauregui - Analyst ActivTrades
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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 🚀.
MCD Mcdonalds is breaking out of the rectangle.MCD stock is breaking out of the rectangle with the 13 days Elders Force Index above 0. This is a good signal to Buy and set the target as the height of the rectangle shape
The rectangle pattern forms when the price moves within two horizontal lines—one acting as resistance (upper line) and the other as support (lower line). This typically indicates a period of consolidation where buyers and sellers are in relative equilibrium.
Duration: The rectangle can last for a few weeks to several months, depending on market conditions. The longer it lasts, the more significant the potential breakout may be. This breakout is significant as it has lasted for many months on end.
Direction of Breakout:
Bullish Breakout: If the price breaks above the resistance level, it suggests that buying pressure has overcome selling pressure, potentially indicating the start of an upward trend.
Volume Confirmation: A breakout is more reliable if accompanied by increased trading volume. High volume during the breakout suggests strong interest and conviction among traders, lending credibility to the price movement. This is why we use the 13-day Elders Force Index
Psychological Factors: Breakouts often attract attention from traders and investors who may see the movement as a signal to enter or exit positions. This can create momentum in the direction of the breakout.
Conclusion
In summary, a breakout from a rectangle pattern signifies a shift in market sentiment and can lead to a new trend. Traders watch for these breakouts closely, as they provide opportunities for profit, but it's essential to consider confirmation through volume and other technical indicators to avoid false signals.
MC DONALDS at 20 years low trend line! Take position Long.MCD - Mac Donald Corp Trend line has a Major strong trend line.
- Indicators showing first signs for uptrend.
- Graphic showing position at bottom MAJOR trend line .
Posible profit:
- 10% profit fot the next 3m - 6m must be easely reached.
- If it fails it will follow the bottom trend line and is still uptrending.
Biggest risk is the at home delivery companies.
For what I noticed they are also becoming part of delivery in the city.
This might also be a new market for them, when they know to deliver 'cheaper food' as them neighbors.
A good stock to take at the higher regions of the market.
Are you in?
Stock at 270 (5-may-2024)
Free Report #1:A Glorious Pattern That Should Have Been BannedAm starting a Free Report Series because of this market crash many traders and investors will need a timely report...
This market crash is huge!!! Infact according to my personal researching it seems that it's worse than 2008.
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If you can prepare by seeing this 3 Step pattern then you might have a chance:
👉The ADX is above the Red DI
👉The PAR is below the price
👉The Price Action is in an uptrend
Now all this is happening on the daily so please take note of that.
This pattern is so powerful that it should be banned.
But you are learning about it.
To learn more about this 3 Step system
🚀 Rocket Boost This Content.
Discliamer:Trading is risky you will lose money please learn risk management and profit taking strategies.
McDonald’s is in love with the 50 monthly moving average.This is the only TA you need for McDonald’s. It’s a consistently strong stock that has only had two red yoy returns in 20 years, and in those 20 years its average drawdown is 12%. We dropped 14% from the year at 288 to 247 and bounced near the 50 MA. I expect this to consolidate for several days or weeks potentially but price target is 300 before EOY.
Positions:
131 shares @ 259/share
20 contracts 300c March 2025 @ 4.74/ea






















