MCD stock: buy or sell?
August 23rd, 2019
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?Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to choose your own trading strategy that fits your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, McDonald's stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is McDonald's stock a buy?
Banks and financial institutions post stock ratings everyday.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 12 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-30||Credit Suisse Group||n/a||Outperform|
|2019-7-29||Wells Fargo & Co||n/a||Outperform|
|2019-7-29||Robert W. Baird||n/a||Outperform|
|2019-7-29||Goldman Sachs Group||n/a||Buy|
|2019-7-29||BMO Capital Markets||n/a||Outperform|
|2019-7-26||Sanford C. Bernstein||n/a||Buy|
|2019-7-15||Wells Fargo & Co||n/a||Outperform|
MCD stock analysis
Shares of McDonald's closed yesterday at $214.66 and fell a rough -2.20%.
Shares of McDonald's ended yesterday at $214.66 and fell a rough -2.20%. On Aug 9th, MCD hit a new all time high, pushing higher than on August 8th tops. Check different trading setups that use ATHs as triggers.
McDonald's depreciated an unpleasant -1.74% this week.
McDonald's stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, MCD might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last all-time high McDonald's marked early August. Since SMA20d and SMA40w crossed up early October, MCD price climbed $50.41 per share (30.69%). Since mid September 2018 when MCD stock price broke up the SMA40w line, it gained $56.74 (35.93%).
MCD stock price history
MCD stock historical price chart
MCD stock reached all-time highs on August 9th with a price of $221.93.
MCD stock price target is $231.10Nobody 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. You should not follow the analysts' MCD stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 14 price targets for MCD stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-30||Credit Suisse Group||Reiterates||$230.00||$236.00||2.6%|
|2019-7-29||Wells Fargo & Co||Raises Target||$235.00||$237.00||0.9%|
|2019-7-29||UBS Group||Raises Target||$203.00||$218.00||7.4%|
|2019-7-29||Stifel Nicolaus||Raises Target||$200.00||$210.00||5%|
|2019-7-29||Robert W. Baird||Raises Target||$225.00||$230.00||2.2%|
|2019-7-29||Goldman Sachs Group||Initiates||n/a||$250.00||-|
|2019-7-29||BMO Capital Markets||Raises Target||n/a||$230.00||-|
|2019-7-18||Morgan Stanley||Raises Target||$210.00||$220.00||4.8%|
|2019-7-15||Wells Fargo & Co||Reiterates||$218.00||$235.00||7.8%|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince April, when McDonald's posted its last earnings report, it rose a great 9.37%. As soon as we get its posted EPS from the earnings report, we will extend this review.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual turnover report draw a shocking drop down of -7.87% to $21,025.20 million dollars. In contrary, its profit margin (compared to sales) 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 earnings were $5,877.30 million USD. When comparing this TTM figures with the last reported annuality, we can review McDonald's business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, stayed stable a lame -0.87%. Regarding profit margin, McDonald's stayed stable 0.02% to 28.18%
|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 resultsMcDonald's posted $4,955.60 million in sales for 2019-Q1, a -4.02% less compared to previous quarter. Reported quarter earnings marked $1,328.40 million with a profit margin of 26.81%. Profit margin stayed constant a -0.61% compared to previous quarter when profit margin was 27.41%. When comparing revenues to same quarter last year, McDonald's sales marked an ugly slide and slightly fell a -3.57%. Looking back to recent quarterly results, McDonald's posted 2 negative quarters in a row.
|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 M||4.18%||$1,496 M27.9%||8.79%|
|2018-Q3||$5,369 M||0.29%||$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 ownershipWhen you are planning to buy a company, it's worth to check its ownership structure.
McDonald's shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.06% of all shares.
In case of McDonald's stock, 69.97% 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.
The following table compares ownership indicators for other stocks related to McDonald's:
|Market cap||$163.9 B||$843.0 M||$22.3 B||$23.7 M||$2.5 B|
|Total shares||763.6 M||123.6 M||27.7 M||12.5 M||29.5 M|
|Float shares||763.1 M||116.4 M||24.1 M||9.5 M||24.1 M|
|- Institutional holdings (%)||70.0%||65.8%||62.7%||32.1%||105.9%|
|- Insider holdings (%)||0.1%||5.6%||2.5%||6.8%||1.8%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, August 23rd, 2019|
|Day range||$213.89 - $219.47|
|Average true range||$3.61|
|50d mov avg||$212.57|
|100d mov avg||$204.30|
|200d mov avg||$192.08|
McDonald's performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare McDonald's to Arcos Dorados, Chipotle Mexican Grill, Good Times Restaurants, Jack In The Box, Starbucks, Carrols Restaurant, Wendy's and Yum! Brands:
|CMGChipotle Mexican ...||21.56%||34.19%||54.68%|
|GTIMGood Times Restau...||-12.90%||-30.00%||-61.03%|
|JACKJack In The Box||8.44%||7.84%||-0.71%|