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McDonald’s (MCD): Crisis Management and Market ReactionWhat a perfect flat this is on McDonald’s. Already back in the range and finished the wave ((ii)) at the 50% Fibonacci retracement level. Far more downside is expected for $MCD. If we are right about this intra wave count, we should see the level of wave ((iii)) to be at a minimum of $258.5. The outbreak that caused the big drop was linked to slivered onions used in Quarter Pounder burgers, which affected 104 individuals across 14 states and resulted in one death. To address the crisis, McDonald’s will invest $35 million in marketing and advertising campaigns to rebuild customer trust and foot traffic. Additionally, $65 million will be directed toward franchisee support, including deferrals on rent and royalties. To recover from this significant image damage, it will likely take much time for NYSE:MCD to resolve these challenges. Therefore, it would also be valid if NYSE:MCD sweeps the range low at the level of $245 before coming back to at least the range middle.
NYSE:MCDShort
by freeguy_by_wmc
KO Coca-Cola and the E. coli outbreak linked to McDonald’sIf you haven`t bought the dip on KO: Now you need to know that Coca-Cola (KO) could see a decline due to the E. coli outbreak linked to McDonald’s, as the two brands have a longstanding partnership, with Coca-Cola products being served widely in McDonald's restaurants. Negative publicity impacting McDonald's could indirectly affect Coca-Cola by reducing in-store traffic, which may lower beverage sales. Additionally, Coca-Cola's association with fast food means that consumer sentiment shifting towards healthier options could further impact sales. If the outbreak spurs changes in public dining behavior, Coca-Cola may face a temporary decline in demand across other food service venues, potentially impacting its stock performance.
NYSE:KOShort
by TopgOptions
1
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.
NYSE:MCD
by freeguy_by_wmc
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.
NYSE:MCDShort
by signalmastermind
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 🚀.
NYSE:MCDShort
by freeguy_by_wmc
4
McDonald's Earnings Miss For the First Time Since 2020McDonald's second-quarter earnings report fell short of analysts' expectations as higher prices contributed to a decline in foot traffic and comparable store sales. Despite efforts to boost sales with promotions like the "$5 Meal Deal," the fast food giant faced challenges in maintaining revenue and profitability. Key Takeaways: - Revenue and Profits: McDonald's reported $6.49 billion in total revenue for Q2, nearly identical to the same period in 2023, but fell short of the $6.63 billion projected by analysts. Net income dropped 12% year-over-year to $2.02 billion, missing expectations of $2.24 billion. - Comparable Sales Decline: Global comparable sales fell 1% from last year, with U.S. locations experiencing a drop in foot traffic due to higher prices. Sales decreases in France and China offset improvements in Japan and Latin America. - Impact of Promotions: The recent "$5 Meal Deal" promotion provided a late-quarter boost, though its full impact will be more evident in the third quarter. Detailed Analysis: Revenue and Profit Performance In the second quarter of 2024, McDonald's revenue remained flat at $6.49 billion compared to the same period in 2023. Analysts had anticipated a growth in revenue to $6.63 billion, but the reality fell short. This stagnation in revenue was accompanied by a notable decline in net income, which dropped 12% year-over-year to $2.02 billion, compared to analysts' expectations of $2.24 billion. Comparable Sales and Foot Traffic The global comparable sales decline of 1% highlighted the challenges McDonald's faced in maintaining customer engagement amid rising prices. In the U.S., higher menu prices led to reduced foot traffic, contributing to a 0.7% decline in same-store sales. Internationally, sales fell by 1.1%, driven by weaknesses in markets like France and China, which overshadowed gains in Japan and Latin America. Promotional Efforts and Market Response In response to the declining sales, McDonald's launched the "$5 Meal Deal" promotion in an effort to attract price-sensitive customers. While this promotion only impacted the final days of the second quarter, it is expected to have a more significant effect on third-quarter earnings. Early reports suggest that the promotion has been successful, potentially continuing into August to sustain momentum. McDonald's CEO Chris Kempczinski emphasized the company's commitment to delivering "reliable, everyday value" and accelerating growth drivers such as chicken and loyalty programs. Despite these efforts, the broader economic environment and consumer price sensitivity have posed substantial challenges. Market Reaction Shares of McDonald's have experienced a 15% decline in value so far this year. However, the stock showed a slight recovery, up 3.77% in Monday's trading session following the earnings announcement. This reflects a cautious optimism among investors that the company's strategic initiatives may eventually pay off. The stock has a Relative Strength Index (RSI) of 57.83, indicating potential for further growth. Adding to the potential growth is the bullish flag pattern depicted on the chart. Conclusion McDonald's second-quarter performance underscores the difficulties faced by the fast food industry amid rising prices and shifting consumer behaviors. While the "$5 Meal Deal" and other strategic initiatives show promise, the company must navigate a complex landscape to regain growth and profitability.
NYSE:MCDLong
by DEXWireNews
McDonald’s Misses Profit Estimates Amidst Middle East Conflict:McDonald's Corporation (NYSE: NYSE:MCD ) falls short of quarterly profit estimates for the first time in two years. Amidst a backdrop of geopolitical tensions in the Middle East and evolving consumer preferences, the iconic fast-food chain faces challenges in maintaining its market dominance. This article delves into the factors behind McDonald's recent performance and the broader implications for its global operations. Growing Consumer Landscape: In an era where consumers are becoming increasingly budget-conscious, McDonald's, known for its affordability, is witnessing a shift in consumer behavior. CEO Chris Kempczinski acknowledged that consumers are becoming more discerning with their spending, signaling a departure from traditional consumption patterns. This shift underscores the need for McDonald's to reassess its pricing strategy and value proposition in the face of changing market dynamics. Impact of Middle East Conflict: The ongoing conflict in the Middle East has cast a shadow over McDonald's international sales, particularly in regions where geopolitical tensions are high. With CFO Ian Borden's warning of a sequential decline in international sales, the company faces headwinds in key markets such as China, where economic sluggishness compounds the challenges posed by geopolitical unrest. Western brands like McDonald's find themselves embroiled in controversy, facing protests and boycott campaigns over perceived political affiliations, further exacerbating the situation. Franchise Disputes and Public Relations Challenges: McDonald's recent controversies, including backlash from franchises in Muslim-majority countries and legal disputes in Malaysia, highlight the complexities of operating a global brand in a politically charged environment. The company's acquisition of its Israeli franchise and legal actions against boycott movements underscore its efforts to manage reputational risks and safeguard its business interests. However, navigating geopolitical sensitivities while maintaining a consistent brand image remains a delicate balancing act for McDonald's. Looking Ahead: As McDonald's grapples with the fallout from missed profit estimates and geopolitical tensions, the road ahead remains uncertain. The company must adapt to evolving consumer preferences, mitigate geopolitical risks, and navigate public relations challenges to regain its footing in the global market. Strategic adjustments in pricing, marketing, and corporate governance will be crucial as McDonald's seeks to restore investor confidence and sustain long-term growth. Technical Outlook Despite the miss in profit estimates, McDonald's stock ( NYSE:MCD ) is up 1.02% trading with a moderate Relative Strength Index (RSI) of 53.12.
NYSE:MCDLong
by DEXWireNews
MCDONALDS $MCD | MCDONALDS RANGE BEFORE EARNINGS - Apr. 15, 2024MCDONALDS NYSE:MCD | MCDONALDS RANGE BEFORE EARNINGS - Apr. 15, 2024 BUY/LONG ZONE (GREEN): $270.00 - $276.50 DO NOT TRADE/DNT ZONE (WHITE): $266.00 - $270.00 SELL/SHORT ZONE (RED): $259.00 - $266.00 Weekly: Bearish Daily: Bearish 4H: Bearish I wanted to create a post for the initial bullish trend breakdown and the first range, but decided to wait until we got closer to the earnings release. The earnings report for NYSE:MCD is on Apr 30th and I am looking to take advantage of volatile price movement, either up or down. Bulls should seek a breakout above level 270.00 and bears should seek a breakdown below level 266.00. Previous trends, structure, momentum, and ranges are all labeled. This is what I would personally look at before entering trades, everything is subject to change on a daily basis and as I analyze different timeframes and ideas. EDUCATIONAL/ENTERTAINMENT PURPOSES ONLY, NOT FINANCIAL ADVICE! trendanalysis, trendtrading, priceaction, priceactiontrading, technical indicators, support and resistance, mcdonalds, mcd, mcdonaldsstock mcdstock, mcdonaldslong, mcdlong, mcdonaldsshort, mcdshort, mcdcall, mcdput, mcdonaldstrend, mcdonaldstrade, mcdonaldsidea, mcdonaldsearnings, earningsreport, earningsrelease, mcdonaldsprice, mcdonaldsrange, mcdonaldschart, mcdonaldspatterns,
NYSE:MCD
by TonyAiello
$DNUT Jumps After Piper Calls McDonald’s Pact a ‘Game Changer'Krispy Kreme Inc. ( NASDAQ:DNUT ) finds itself at the center of a brewing investor frenzy following its groundbreaking partnership with McDonald's Corp., signaling a potential paradigm shift for the beloved doughnut company. As Piper Sandler Cos. hails the collaboration as a "game changer," Krispy Kreme's stock skyrockets, prompting a wave of optimism among investors eager to capitalize on the company's newfound momentum. A Strategic Alliance Unveiled: In a move hailed as transformative, Krispy Kreme's ( NASDAQ:DNUT ) decision to join forces with McDonald's marks a pivotal moment in its trajectory. With plans to distribute its delectable doughnuts nationwide through McDonald's restaurants, Krispy Kreme ( NASDAQ:DNUT ) opens the floodgates to unprecedented growth opportunities. Piper Sandler's bullish stance on the partnership underscores its potential to propel Krispy Kreme to new heights, heralding a period of sustained expansion and profitability. Analysts' Optimism Fuels Investor Confidence: Piper Sandler's resounding vote of confidence in Krispy Kreme ( NASDAQ:DNUT ) sends shockwaves through the market, as analysts Brian Mullan and Aisling Grueninger elevate their rating on the company to overweight. Anticipating a surge in demand and widespread availability of Krispy Kreme's ( NASDAQ:DNUT ) signature treats, investors flock to the stock, driving prices to new heights. With a revised price target of $20, Piper Sandler foresees substantial upside potential, igniting a wave of investor optimism. Expanding Horizons: The McDonald's partnership not only amplifies Krispy Kreme's market reach but also paves the way for unprecedented growth in the years ahead. By leveraging McDonald's vast network, Krispy Kreme ( NASDAQ:DNUT ) aims to infiltrate 5,000 restaurants across the US, effectively expanding its points of access and solidifying its position as a household name. With plans to ramp up doughnut production capacity, Krispy Kreme's management exudes confidence in its ability to capitalize on this monumental opportunity. Sustaining Momentum for the Future: While McDonald's serves as the catalyst for Krispy Kreme's meteoric rise, the implications extend far beyond the immediate horizon. As Krispy Kreme ( NASDAQ:DNUT ) embarks on a trajectory of accelerated growth, fueled by strategic partnerships and enhanced production capabilities, investors brace for a future brimming with promise. With each bite of a Krispy Kreme ( NASDAQ:DNUT ) doughnut, consumers indulge in a taste of sweet success, underpinned by a legacy of innovation and unwavering commitment to excellence.
NASDAQ:DNUTLong
by DEXWireNews
McDonald’s Set to Sell Krispy Kreme Nationwide: $DNUT SurgeMcDonald's is all set to sell Krispy Kreme Doughnuts ( NASDAQ:DNUT ) at its restaurants nationwide by the end of 2026. This partnership is a major opportunity for Krispy Kreme ( NASDAQ:DNUT ) to expand its reach and increase its production capacity. The rollout will kick-start in the second half of this year, and it will take roughly two and a half years as Krispy Kreme more than doubles its distribution to satisfy the partnership. McDonald’s will be the exclusive fast-food partner for Krispy Kreme in the U.S. for the duration of the agreement. The doughnut chain uses a "hub and spoke" model that lets it make and distribute its treats efficiently. Production hubs, which are either stores or doughnut factories, send off freshly made doughnuts every day to retail locations such as grocery stores and gas stations. Krispy Kreme ( NASDAQ:DNUT ) has been expanding its capacity so that it can deliver fresh doughnuts to the roughly 7,500 McDonald’s restaurants that it can’t currently reach. McDonald's customers will be able to order the original glazed, chocolate iced with sprinkles and chocolate iced cream-filled doughnuts, either individually or in packs of six. The restaurants will sell the doughnuts all day. The addition of Krispy Kreme doughnuts ( NASDAQ:DNUT ) helps bolster McDonald's bakery and breakfast offerings. The burger chain has been leaning into coffee, a common drink pairing for doughnuts, but trimming other bakery items such as cinnamon rolls from its menu. Technical Outlook In the long term, Krispy Kreme ( NASDAQ:DNUT ) now expects it can reach more than 100,000 points of access for its doughnuts globally, up from its prior outlook of 75,000 locations. The chain’s doughnuts can currently be found in more than 14,100 stores across 39 countries. Shares of Krispy Kreme ( NASDAQ:DNUT ) jumped almost 22% in premarket trading Tuesday after the announcement. With a bullish Relative Strength Index (RSI) of 74 indicating the bulls are in control of the market, investors have to be careful because it may also mean an overbought situation in the long term. Overall, this partnership is a significant achievement for both the companies. With McDonald's being the primary reason for Krispy Kreme's expansion, the doughnut chain will also be using the opportunity to land in grocery and convenience stores that prefer national suppliers, which means that the overall efficiency and productivity of the distribution network will significantly improve over time.
NASDAQ:DNUTLong
by DEXWireNews
McDonald's: Is the Feast Over? For McDonald's Corporation, we continue to believe that we are in a long-term downward correction on the daily chart. We completed the first 5-wave cycle with Wave (5), nearly at the all-time high of around $300. Since then, we've developed the subordinate Wave A and potentially also completed Wave B or at least its initial parts. We expect to see Wave C and the overarching Wave (A) at the level of the subordinate Wave A, i.e., at $245.88. However, if Wave B extends beyond 138%, or $319, and we break above this $319 level, our scenario would be invalidated, and we would need to reconsider our analysis. Until then, we anticipate a subordinate Wave ((c)) moving towards subordinate Wave B in a zigzag pattern, as the structure from Wave A to subordinate Wave ((a)) is a five-wave impulse, indicating a zigzag movement is the only possibility. Therefore, we expect a decline to between $267 and $258, followed by a reversal to develop Wave B, potentially at 138% or 127.2%.
NYSE:MCDLong
by stromm_by_wmc
Tesla Mimicking McDonalds' 75 Percent DropHere's an overlay of $MCD in yellow from 1980 to 2005 lined up to the 75% drop in $MCD on the "Dollar Menu" price wars, store closings and YOY% sales decline for $MCD back in 2002. It was a disaster. Well, $TSLA has the same 75% drop to the current low. Maybe they mimic, maybe they don't. Just interesting! Here's the $MCD chart and the part that I copied and pasted... the huge run-up and the 75% correction. I lived through the $MCD collapse, as did a buddy of mine who is a broker and was buying all the way down from 50% down to 75% down and made a great fortune for his clients on the 10X rally over the next 10 years The % rallies aren't that comparable for $MCD and $TSLA, but the pattern is similar to me. A global brand with a solid track record facing a short term challenge and competition and fears.
NASDAQ:TSLALong
by timwest
93
McDonald's:A Time-Tested Investment Recipe for Long-Term SuccessMcDonald's: A Time-Tested Investment Recipe for Long-Term Success McDonald's, an iconic symbol of the fast-food industry, has not only defined the sector but has been a consistent performer, enriching investors globally. Despite its historical success, a prudent investor must evaluate the potential for future returns. Here are three compelling reasons why McDonald's deserves consideration for a long-term investment strategy. 1. Robust Dividend Growth: While rapid stock price surges might not be the norm for McDonald's, its dividend story stands out. With a quarterly dividend of $1.67 and a yield just below 2.2%, McDonald's has a reliable dividend with a positive trajectory. What sets it apart is its consistent annual dividend growth for 47 consecutive years, a trajectory that positions it to achieve Dividend King status. The recent 10% boost to its dividend is a testament to a decade of doubling its payout. The reasonable payout ratio of 53% further ensures stability, allowing for strategic business initiatives. 2. Global Expansion Through Localization: From its humble beginnings in San Bernardino, California, McDonald's has become a global giant with a presence in over 115 countries. Key to its global success is an astute strategy of localization, tailoring its offerings to suit local tastes. Menu adaptations like the Ebi Filet-O in Japan or the McSpicy Paneer in India showcase this approach. In Q3, McDonald's reported sales growth outpacing the US, underscoring the effectiveness of its localization strategy. 3. Franchisee-Centric Business Model: Despite its vast global reach, McDonald's directly operates only a fraction of its outlets. The majority are owned by franchisees, providing McDonald's with a dual revenue stream from franchisee fees and rental income. This shift to a more franchisee-centric model has positively impacted gross profit margins, with rental income carrying higher margins than operational income from food sales. This strategic move enables shareholder-friendly practices like substantial share buybacks and dividends, ensuring enduring value for investors. McDonald's continues to serve up success with a blend of dividend consistency, global adaptability, and a franchisee-centric model. Its ability to evolve with local tastes and navigate the complexities of global markets positions it as a compelling long-term investment. As the golden arches continue to stand tall, McDonald's remains an enduring symbol not just in the fast-food industry but also in the portfolios of savvy, forward-thinking investors. Compared to the current market price of 286.60 USD, McDonald's Corp is Overvalued by 30%.
NYSE:MCDLong
by FOREXN1
1