MDO trade ideas
MCD - 3rd waves, 3rd FVGEx D soon too.
Will the operators dump their holding?
>> Beware of pullback / correction.
When a stock / index has gone up substantially, we must be more care if we decide to get involve in it...
monitor closely and be agile....
we cannot PREDICT what definitely will happen ~ we can only RESPONSE to what we see!
Disclaimer: Mentioned stocks are solely based on own opinions for education and/or discussion purpose only. There's no buy and/or sell recommendation. Trading involve financial risk on your own. The author shall not be responsible for any losses or lost profits resulting from investment decisions based on the use of the information contained herein.
Why I Buy MacDonalds With Both HandsMCD tanked impressively lately.
I had no clue why.
Then I checked the News, which I very rarely do.
There was one article that made absolutely no sense to me:
"Concerns about weight-loss drugs:
There are some concerns that the growing popularity of weight-loss drugs, such as Ozempic and Wegovy, could take away demand from food companies like McDonald's."
To me, this writer has inverse Logic.
Why?
Because if I would love the (crappy) MCD Food, and I could just take a Pill and loose weight, I would probably eat more at MCD.
However, I buy with both hands since MCD is a the Center-Line of this Pull-Back Fork, as soon I have some indication.
(Heads Up: Earnings ahead!)
And remember: You can buy, even when you sell (...hint: Puts). It's the Buffet way. If price close in the money at end of DTE, you got the Put's premium, AND the Stock for a way cheaper price. If price is closing out of the money after DTE, you keep the premium....double Whopper ยง8-)
Away for a healthy Burger at $MyOneKitchen.
Is Mcdonalds Oversold? Mcdonalds (MCD) stock is currently trading around at a price of $251.52. With respects to technicals, historically, trading below the 300 period MA has been a pretty good buying signal for this stock, and it is currently around 7% below its 300 day moving average. With respects to fundamentals, fast food is typically regarded as an inferior good, which means that as real household incomes fall, demand for fast food increases. As the economy is predicted by many to fall into recession, with the high consumer debt level, MCD could stand to profit greatly from increased sales and decreased costs.
To profit off this, I am going long shares and calls on MCD, with a small take profit around 290.
McDonald (MCD) Aiming Higher McDonald's (MCD) beat earnings estimates for the third quarter as higher menu prices boosted sales growth.
Global systemwide sales โ which include sales at company-owned and franchised restaurants โ increased 11%. Global same-store sales jumped 8.8%, higher than analysts' estimates of 7.79%, per Bloomberg consensus data.
Revenue jumped 14% year-over-year to $6.69 billion, higher than estimates of $6.52 billion. Adjusted earnings per share came in at 3.19, up 19% from last year.
Shares of McDonald's are down nearly 3% year-to-date, trailing behind Restaurant Brands International (QSR) which is up nearly 2% year-to-date, but ahead of YUM! Brands (YUM) shares, which are down nearly 7%.
As consumers buckled down on where they spent their money, McDonald's says it got a boost in the US.
In the US, sales benefitted from higher menu prices, new marketing campaigns, and growing digital and delivery orders. Beginning in August, the company launched its As Featured In Meal campaign that showed meals that have appeared in films, movies or TV shoes.
Baird analyst David Tarantino said McDonald's typically gains foot traffic when there are "mounting macroeconomic uncertainties" in a note to clients, adding that the Golden Arches is "one of the best positioned brands...to navigate a tougher backdrop."
During the financial crisis from 2008 to 2009, sales growth averaged 3.4% in the U.S. and 6.9% in Europe, he said.
The company also reported systemwide digital sales โ which includes sales made on the app, delivery or on the kiosk โ totaled $9 billion across its six biggest markets, making up 40% of total sales. That's more than Q2, which saw $8 billion in digital sales.
Price Momentum
MCD is trading near the bottom of its 52-week range and below its 200-day simple moving average.
Investors have been pushing the share price lower, and the stock still appears to have downward momentum. This is a negative sign for the stock's future value, but we may expect a consolidation move after reaching its Lower Low (LL) we will expect an upward momentum.
MCDONALDS Very rare yearly buy opportunity close to be confirmedMcDonalds Corporation (MCD) has been trading on a Fibonacci Channel Up since late 2020 and since the May 2023 High, has started a correction that twice in October hit the bottom (Higher Lows trend-line) of the pattern. On the October 06 bottom in particular, the 1D RSI reached 20.00, which means massively oversold on strength.
Since the 2020 COVID crash, the RSI approached/ hit this level another 3 times, all of which have been enormous buy opportunities on an annual basis. The respective rebounds that followed quickly hit first the 0.786 Fibonacci retracement level before going for a new All Time High (ATH) and the buy confirmation every time has been the RSI breaking above its Lower Highs trend-line.
As a result, we are waiting for that closing above it (right now it has marginally broken) in order to enter a (still) low risk buy and target 288.00 (0.786 Fib) on the medium-term.
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MCD breaking meaningful supportMcDonaldโs Corp. (MCD) presently approaching meaningful long-term support, able to absorb monthly selling pressures.
From here, (MCD) can rotate higher to our next notable resistance level, eliciting gains of 10 - 15% over the following 3 - 5 months, and gains of 20% over the following 5 - 6 months.
Inversely, a weekly settlement below key support would place (MCD) into a sell signal where losses of 20% would be expected over the following 3 - 5 months.
๐ฑMCD under major threat!McDonaldโs and Others Face New Rule That Could โDestroy the Franchise Model,โ Company Says
The National Labor Relations Board (NLRB) proposes a new rule that expands the "joint employer" definition, potentially making franchisors liable in labor disputes and bringing them to the bargaining table with unions. This rule could have significant implications for industries heavily reliant on franchising, such as fast food and hotels.
Summary
- The NLRB is preparing to issue a new rule that broadens the definition of "joint employer," affecting industries like fast food, hotels, logistics, construction, and tech.
- The rule would make holding franchisors accountable in labor disputes easier.
- It evaluates joint employer status based on control over essential working conditions, potentially including indirect governance.
- McDonald's and other franchise companies argue that the rule threatens the franchise model, making them liable for employment matters, which they claim they haven't been in over 70 years.
- Franchise trade groups are lobbying to overturn the rule through Congress and plan to challenge it in court.
- The potential impact includes increased control over franchisees, compliance costs, and legal expenses.
- A survey found that franchisees are concerned about increased control and reduced support from franchisors.
- The issue has been debated and changed during different administrations, with the pendulum swinging back and forth.
- A court challenge is likely once the rule's final version is released.
- The rule change could significantly affect workers, the industry, and investors in franchise businesses.
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.
๐๐ #ChartPattern Alert! ๐๐ ๐ Channel ๐A "channel," in the context of trading and technical analysis, is a chart pattern that forms when the prices of a financial asset move between two parallel lines, creating a kind of corridor or channel. There are two main types of channels: an ascending channel and a descending channel.
Ascending Channel: This channel forms when prices have an overall upward trend, but this trend is contained within two upward-sloping parallel lines. The lower level is the support, where prices often find buyers, while the upper level is the resistance, where sellers may come into play. Traders often view the ascending channel as a sign of the continuation of the existing uptrend.
Descending Channel: On the other hand, the descending channel forms when prices have a downward trend, but this trend is bounded by two downward-sloping parallel lines. The upper level is the resistance, where prices tend to retreat, while the lower level is the support, where minor bounces may occur. Traders typically interpret the descending channel as a sign of the continuation of the downtrend.
Channel analysis is an important tool for traders as it can help identify entry and exit points, as well as set profit targets and stop-loss levels. However, it's crucial to note that channels are not foolproof, and prices can break beyond the channel lines, signaling a change in trend.
In summary, a "channel" is a chart formation that depicts the direction and strength of a price trend in a financial asset. It's a useful tool for traders looking to make informed decisions about their market trades.
McDonald's Corp: Bearish Deep Crab with Double PPO ConfirmationWe have a Bearish Deep Crab with a PPO Confirmation Arrow and a Circle with MACD Bearish Divergence and have broken below the faster moving EMAs. I would next expect this to make at least a 61.8% Retrace, which would take it back to about $185.
This makes the third major Dow 30 Stock that has signalled something ultra bearish like this; the other two being UNH and MSFT, which can be seen below:
We are likely looking at a major correction coming to the Dow Jones Industrial Average very soon.
MCD Entry, Volume, Target, StopEntry: with price above 298.80
Volume: with volume greater than 2.12M
Target: 318 area
Stop: Depending on your risk tolerance; 292.42 gets you 3/1 Reward to Risk Ratio.
This swing trade idea is not trade advice and is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
MCD put credit spreadmacro: snp500 QQQ uptrend, but retracing, MCD Earnings beat
News: inflation flattening, russia stopping wheat shipments
TA : ascd triangle
STOP: rolling till worthless options
TP: low value per day or expire
risk: market downturn after very strong first half, fed continue rise interest rate