MCD stock: buy or sell?

MCD stock price: $211.98 0.54% At close on January 17th, 2020

Updated on:
January 17th, 2020

5

McDonald's gained a tiny 0.54% and closed at $211.98. With Jan 17th, it's been 4 climbing days in a row, soaring $5.47 or 2.64%.

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu.

Should I buy MCD stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Having a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with McDonald's stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is McDonald's stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 15 ratings published for MCD stock in the last 30 days.

The general sentiment of these ratings is bullish for MCD stock, with 11 positive ratings.
Is MCD a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-24BTIG ResearchBuyPositive
2019-8-13MKM Partnersn/aBuy
2019-7-30DZ BankBuyHold
2019-7-30Credit Suisse Groupn/aOutperform
2019-7-29Wells Fargo & Con/aOutperform
2019-7-29UBS Groupn/aNeutral
2019-7-29Stifel Nicolausn/aHold
2019-7-29Stephensn/aOverweight
2019-7-29Robert W. Bairdn/aOutperform
2019-7-29KeyCorpn/aOverweight
2019-7-29Goldman Sachs Groupn/aBuy
2019-7-29BMO Capital Marketsn/aOutperform
2019-7-26Sanford C. Bernsteinn/aBuy
2019-7-18Morgan Stanleyn/aOverweight
2019-7-18Cowenn/aOutperform

MCD stock analysis

Daily outlook

McDonald's shares gained 0.54% to $211.98 on January 17th.

McDonald's closed on Jan 17th at $211.98 and gained a tiny 0.54%. Since price and SMA200d lines crossed up on Jan/6, MCD climbed $11.90 (5.95%). MCD shows a sign of strength in the short-term after finally breaking out above $209.37 on January/9 and marking a new rising bottom. On September, MCD hit a new all time high, pushing higher than on August tops. Check different trading setups that use ATHs as triggers.

MCD stock chart (daily)

Weekly outlook

McDonald's shares raised 2.27% this week, ending at $211.98. This week was the 5th green week in a row.

Since price and SMA40w lines crossed up last week, MCD climbed $11.90 (5.95%). Far behind is the all-time high McDonald's marked early September but price is just -3.40% below that top.

MCD stock chart (weekly)

MCD stock price history

MCD stock historical price chart

MCD stock reached all-time highs on September with a price of $219.43.

MCD stock price target is $231.50

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 14 price forecasts for McDonald's stock:
MCD stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-24BTIG ResearchRaises Target$220.00$240.009.1%
2019-8-13MKM PartnersInitiatesn/a$250.00-
2019-7-30DZ BankReiterates$222.00$220.00-0.9%
2019-7-30Credit Suisse GroupReiterates$230.00$236.002.6%
2019-7-29Wells Fargo & CoRaises Target$235.00$237.000.9%
2019-7-29UBS GroupRaises Target$203.00$218.007.4%
2019-7-29Stifel NicolausRaises Target$200.00$210.005%
2019-7-29StephensRaises Target$220.00$230.004.5%
2019-7-29Robert W. BairdRaises Target$225.00$230.002.2%
2019-7-29KeyCorpReiterates$215.00$235.009.3%
2019-7-29Goldman Sachs GroupInitiatesn/a$250.00-
2019-7-29BMO Capital MarketsRaises Targetn/a$230.00-
2019-7-18Morgan StanleyRaises Target$210.00$220.004.8%
2019-7-18CowenReiterates$225.00$235.004.4%
(in average)$218.60$231.506.0%
The price forecast for McDonald's stock is $231.50, moving in a range between $250.00 and $210.00. In average, analysts' outlook on MCD price target is positive, increasing the forecast by a 6.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when McDonald's presented its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
MCD earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.63n/a
2017-Q32017-10-241.771.76-0.6%
2017-Q42018-01-301.591.717.5%
2018-Q12018-04-301.671.797.2%
2018-Q22018-07-261.921.993.6%
2018-Q32018-10-231.982.16.1%
2018-Q42019-01-301.91.973.7%
2019-Q12019-04-291.81n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, McDonald's annual turnover dropped a shocking -7.87% to $21,025.20 M USD from $22,820.40 marked in 2017. On the other hand, its income margin (compared to revenues) escalated to 28.18%, that is $5,924.30 million.

To have an up to date picture of the financial situation of McDonald's, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual McDonald's TTM sales up to March 2019 were $20,841.90 and income was $5,877.30 million USD. When comparing this TTM figures with the last reported annuality, we can esteem McDonald's business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, remained stable an ugly -0.87%. Regarding profit margin, McDonald's remained steady 0.02% to 28.18%

MCD annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$28,110 M-$5,590 M19.9%-
2014$27,441 M-2.38%$4,758 M17.3%-14.89%
2015$25,413 M-7.39%$4,529 M17.8%-4.80%
2016$24,622 M-3.11%$4,687 M19.0%3.47%
2017$22,820 M-7.32%$5,192 M22.8%10.79%
2018$21,025 M-7.87%$5,924 M28.2%14.10%
TTM $20,842 M-0.87%$5,877 M28.2%-0.79%

Quarterly financial results

McDonald's reported $4,955.60 million in revenues for 2019-Q1, a -4.02% decline compared to previous quarter. Reported quarter income marked $1,328.40 million with a profit margin of 26.81%. Profit margin remained constant a -0.61% compared to previous quarter when profit margin was 27.41%. When comparing turnover to same quarter last year, McDonald's sales marked a disappointing decrease and decreased a -3.57%. Looking back to recent quarterly results, McDonald's posted 2 positive quarters in a row.
MCD quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$6,050 M-$1,400 M23.1%-
2017-Q3$5,750 M-4.96%$1,880 M32.7%34.29%
2017-Q4$5,340 M-7.13%$699 M13.1%-62.84%
2018-Q1$5,139 M-3.77%$1,375 M26.8%96.85%
2018-Q2$5,354 M4.18%$1,496 M27.9%8.79%
2018-Q3$5,369 M0.29%$1,637 M30.5%9.42%
2018-Q4$5,163 M-3.84%$1,415 M27.4%-13.56%
2019-Q1$4,956 M-4.02%$1,328 M26.8%-6.14%

McDonald's ownership

When you are planning to buy shares of a stock, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For McDonald's, 0.11% of all outstanding shares are owned by its staff.

In case of McDonald's stock, 69.64% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for MCD stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related stocks:

MCD
Market cap$161.0 B
Total shares759.4 M
Float shares752.4 M
  - Institutional holdings (%)69.6%
  - Insider holdings (%)0.1%
Shares in short selling0.0%

MCD summary

Friday, January 17th, 2020
Open$211.42
Close$211.98
Day range$211.35 - $212.77
Previous close$210.85
Session gain0.54%
Average true range$2.50
50d mov avg$197.29
100d mov avg$202.11
200d mov avg$202.16
Daily patternlb02c
Weekly pattern lb06b

McDonald's performance

To better understand McDonald's performance you must compare its gains with other related stocks in same sector or industry. We compared McDonald's against in the following table:
Stock3m6m12m
MCDMcDonald's2.32%0.28%18.91%

McDonald's competitors

Unfortunately, we could not find any public company that could be defined as McDonald's competitor. This doesn't mean McDonald's does not have any competitor in the market, it's just we could not detected it.