McDonald’s (MCD) Offering Possible 44.09% Return Over the Next 14 Calendar Days

McDonald's's most recent trend suggests a bullish bias. One trading opportunity on McDonald's is a Bull Put Spread using a strike $212.50 short put and a strike $207.50 long put offers a potential 44.09% return on risk over the next 14 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $212.50 by expiration. The full premium credit of $1.53 would be kept by the premium seller. The risk of $3.47 would be incurred if the stock dropped below the $207.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for McDonald's is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for McDonald's is bullish.

The RSI indicator is at 75.71 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for McDonald's

McDonald's takes action against Australia's Burger King over 'Big Jack'
Thu, 03 Sep 2020 08:23:08 +0000
Global fast food giant McDonald's Corp. has filed a trademark infringement notice in Australia after the local unit of Burger King created a similar product called the “Big Jack,” according to a local newspaper report on Thursday. Australian franchise Hungry Jack's released a double layer hamburger in July, similar in construction and appearance to the Big Mac, McDonald's alleges in documents filed with the Federal Court on Aug. 28, the Sydney Morning Herald newspaper reported. Hungry Jack's “deliberately adopted or imitated” the “distinctive appearance or build” of the Big Mac, along with its ingredients and tagline; “two all-beef patties, special sauce, lettuce, cheese, pickles, onions – on a sesame seed bun”, McDonald's alleged, according to the report.

McDonald's (MCD) Outpaces Stock Market Gains: What You Should Know
Wed, 02 Sep 2020 21:45:09 +0000
In the latest trading session, McDonald's (MCD) closed at $216.23, marking a +1.66% move from the previous day.

Black Former McDonald's Franchisees Say They Were Set Up To Fail
Wed, 02 Sep 2020 15:58:28 +0000
Fast-food giant Mcdonald's Corp (NYSE: MCD) faces a new legal battle as more than 50 former Black franchisees allege racial discrimination prevented them from achieving financial success.The Lawsuit Against McDonald's: Fifty-two Black plaintiffs who operated more than 200 McDonald's restaurants allege in a federal lawsuit filed Tuesday that the company violated federal anti-discrimination laws, according to CNBC. The lawsuit seeks $1 billion in damages. The group alleges that McDonald's pushed Black franchisees toward operating in lower-income neighborhoods that generate lower-than-average sales but have higher security and insurance costs.The franchisees said in the lawsuit that they were given misleading information by McDonald's that persuaded them to accept less desirable locations.In contrast, white operators were treated differently and given access to better markets, according to the lawsuit. Number Of Black McDonald's Franchisees Falls: Black franchise owners were given "little to no say" in deciding where they wanted to open a new store, plaintiffs' attorney Jim Ferraro said on CNBC's "Power Lunch."McDonald's history of unfair treatment toward Black people dates back to its creation, he said, but it wasn't until 1998 the fast-food chain "acknowledged these problems" publicly.Since 1998, the total number of Black franchise owners fell from 377 to 186 today, Ferraro said. McDonald's CEO Chris Kempczinski said this year that McDonald's has likely helped to make more Black people millionaires than any other corporation on the planet. Ferraro said this is a "false statement."Throughout the company's history, it's had around 600 Black franchisees, and to say it made more millionaires is "patently false," he said. "Even the Dallas Cowboys alone with the NFL made more Black millionaires than McDonald's." McDonald's Denies Allegations: McDonald's categorically denies allegations that discrimination prevented franchise owners from succeeding, the company told The Washington Post in a statement. The facts are on McDonald's side, according to the company, which said it will "show how committed we are to diversity and equal opportunity."The fast food company said it does not have a say in the locations a franchise owner purchases.McDonald's said it doesn't treat Black franchisees any different from other franchisees."Based upon our review, we disagree with the claims in this lawsuit and we intend to strongly defend against it," Kempczinski said in a video sent to employees and suppliers."But I think it's important in moments like this to remind ourselves what we do stand for. And as CEO, that's a tone I intend to continuously set from the top. McDonald's stands for diversity, equity and inclusion. I'm proud of the work we've done as a company to foster entrepreneurship, economic growth and mobility."MCD Price Action: McDonald's shares were up 1.31% at $215.48 at last check Wednesday. Related Links:McDonald's Response To TikTok Rumors: Yes, Our Food Can RotMcDonald's Says Ex-CEO Easterbrook 'Breached Fiduciary Duties'Photo by Bryan Hong via Wikimedia. See more from Benzinga * McDonald's Says Ex-CEO Easterbrook 'Breached Fiduciary Duties' * Internal McDonald's Investigation Deepens After CEO Firing: Report * Restaurant Roundup: Domino's Launches First New Pizza In Years, McDonald's And Papa John's Double Down On Chicken Trend(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Starbucks vs McDonald’s: How To Choose Between The Coffee King & Burger Giant?
Wed, 02 Sep 2020 13:03:23 +0000
Fast food joints and restaurant chains feature among the most impacted victims of the pandemic and have seen thousands of job losses. The National Restaurant Association estimates that the restaurant and foodservice industry lost about $120 billion in sales during the first three months of the pandemic.Even as the economies are reopening across the world, dining is still restricted and the demand for home delivery and drive-thru pick-up has increased. Several eateries have now cut their menus to ensure faster delivery.Using the TipRanks’ Stock Comparison tool, we will place Starbucks and McDonald’s alongside each other to see which stock offers a more compelling investment opportunity.Starbucks (SBUX)Coffee giant Starbucks expects business to improve with its stores reopening in the US and elsewhere. As of the end of July, about 97% of company-operated stores and 87% of licensed stores reopened. The company’s fiscal third-quarter (ended June 28) loss was the steepest in over a decade, reflecting the enormous impact of the pandemic.Meanwhile, Starbucks continued to expand even in a highly uncertain environment. It opened 130 net new stores in the fiscal third quarter, ending the period with 32,180 stores, of which 51% were company-operated and the rest were licensed.The fiscal 2020 third-quarter revenue fell 38.1% Y/Y to $4.22 billion. Global comparable sales fell 40% with Americas comps down 41% and international comps down 37%. The company slipped to an adjusted loss per share of $0.46 from an adjusted EPS of $0.78 in fiscal 2019’s third quarter as expenses deleveraged on weak sales.For the fourth quarter, Starbucks expects adjusted EPS in the range of $0.18 to $0.33 compared to the prior guidance of $0.15 to $0.40. Global comps are predicted to decline in the range of 12% to 17% with Americas comps predicted to fall 12% to 17% and International comps anticipated to plunge 10% to 15%.Looking ahead, the company intends to open 300 net new stores in America and at least 500 net new stores in China (Starbucks’ second-largest market) in fiscal 2020. It sees huge prospects for its Starbucks Pickup stores and intends to open over 50 of these over the next one to one and a half years in the domestic market.Meanwhile, options like mobile order & pay, drive-thru, curbside and entryway pick-up are helping in driving improved sales. Almost 90% of third-quarter sales volumes were via drive-thru and mobile order-and-pay.To cater to evolving consumer choices, Starbucks is also adding plant-based choices to its menu through partnerships with Beyond Meat, Impossible and Oatly.On August 25, Stifel analyst Christopher O'Cull upgraded Starbucks to Buy from Hold and increased the price target to $90 from $78. The analyst is bullish about comps in the near-term despite headwinds like travel and breakfast declines and is upbeat about initiatives like curbside pickup and new store formats.The analyst stated, "Our upgrade reflects our view the company is taking quick, aggressive steps to navigate these headwinds," and believes that the initiatives will lead to steady sales recovery in the US and China. (See SBUX stock analysis on TipRanks)A Moderate Buy consensus for Starbucks is based on 10 Buys and 12 Holds. The stock has declined 2.1% so far in 2020 and the 12-month average analyst price target of $84.11 reflects a further downside of 2.3%.McDonald’s (MCD)McDonald’s saw its business recover to some extent in the US in the second quarter but international sales were hurt by continued restrictions or lockdowns in several key markets. The leading foodservice retailer operates over 39,000 locations in 119 countries.By the end of the second quarter, almost all of McDonald US restaurants were operating with drive-thru, delivery, and/or take-away options with a limited menu and limited hours. Also, about 2,000 dining rooms reopened with reduced seating capacity by June end. However, rising COVID cases impacted further reopening in June.McDonald’s feels that the second-quarter performance was a trough and the company is adjusting its operations to the new normal.  The second-quarter revenue plummeted 30% Y/Y to $3.76 billion. Same-store sales were down 23.9%, including an 8.7% decline in US comparable sales and a 41.4% decline in International Operated Markets. Adjusted EPS fell 68% to $0.66.However, monthly same-store sales indicated improvement as June comparable sales fell 12.3% compared to a 20.9% decline in May and 39% in April. Breakfast sales continue to be hurt due to disruptions to commuting.Looking ahead, McDonald’s plans to open 400 restaurants this year in China, including 150 added through June. Overall, the company plans to open about 950 gross (350 net new restaurants) this year. It is accelerating store closures in the US, with the plan to shut down 200 locations, half of which are low volume restaurants in Walmart stores.Meanwhile, McDonald's intends to invest an incremental $200 million in marketing across its domestic and International Operated Markets in the second half of 2020 to accelerate recovery. It will continue to focus on what it calls 3Ds – drive-thru, delivery and digital. The company has observed that markets with a higher percentage of drive-thrus are showing quicker recovery. Drive-thrus are present in 95% of McDonald’s locations and accounted for about 90% of the second-quarter sales. (See MCD stock analysis on TipRanks)On August 18, KeyBanc analyst Eric Gonzalez increased the price target for McDonald's stock to $225 from $215 and maintained a Buy rating. The analyst’s Key First Look Data supports accelerating sales trends in the US in recent weeks and he is bullish about McDonald’s innovation pipeline and advertising "war chest."The Street’s Strong Buy consensus breaks down into 18 Buys and 5 Holds. McDonald’s stock has risen over 7% year-to-date, though an average analyst price target of $215.40 indicates only a modest upside of 1.3% over the next 12 months.Bottom lineAs economies around the world reopen, both McDonald’s and Starbucks are likely to deliver improved numbers. Currently, McDonald’s looks more poised to recover faster. It experienced slightly positive US comparable sales in July. Moreover, McDonald’s is a dividend aristocrat with a dividend yield of 2.3%, which is higher than Starbucks’ yield of 1.9%.To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment More recent articles from Smarter Analyst: * DraftKings In The Spotlight As Michael Jordan Joins Board; Stock Rises 4% * Walmart’s Flipkart Launches Online Wholesale Service In India * Well Fargo Says These 2 Stocks Could Rally Over 70% From Current Levels * Roth Lifts Gogo’s PT After Commercial Aviation Unit Sale

Moviegoing Is Back — and AMC Stock Is Gaining
Wed, 02 Sep 2020 11:54:00 +0000
Trump administration officials say stimulus deal still possible, New York City delays reopening of schools, Trump visits Kenosha as campaigning heats up, and other news to start your day.

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