MCD stock: buy or sell?
January 17th, 2020
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.
|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?
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.
|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|
MCD stock analysis
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.
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 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 $231.50Nobody 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-24||BTIG Research||Raises Target||$220.00||$240.00||9.1%|
|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%|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince April, when McDonald's presented its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%
|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 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.
|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 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:
|Market cap||$161.0 B|
|Total shares||759.4 M|
|Float shares||752.4 M|
|- Institutional holdings (%)||69.6%|
|- Insider holdings (%)||0.1%|
|Shares in short selling||0.0%|
|Friday, January 17th, 2020|
|Day range||$211.35 - $212.77|
|Average true range||$2.50|
|50d mov avg||$197.29|
|100d mov avg||$202.11|
|200d mov avg||$202.16|
McDonald's performanceTo 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: