McDonald’s (MCD) Offering Possible 7.07% Return Over the Next 27 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 $210.00 short put and a strike $195.00 long put offers a potential 7.07% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $210.00 by expiration. The full premium credit of $0.99 would be kept by the premium seller. The risk of $14.01 would be incurred if the stock dropped below the $195.00 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 68.36 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

Buy McDonald’s Stock, Analyst Says. Travis Scott and Other Celebrities Will Help it Recover.
Thu, 17 Sep 2020 21:38:00 +0000
McDonald’s stock is up nearly 13% in 2020, and Longbow Research thinks the fast-food purveyor is continuing to recover—with the help of celebrities.

Analyst Report: McDonald's Corporation
Thu, 17 Sep 2020 17:22:20 +0000
McDonald's generates revenue through company-owned restaurants, franchise royalties, and licensing pacts. Restaurants offer a uniform value-priced menu with some regional variations. As of June 2020, there were roughly 39,000 locations in more than 120 countries: 36,400 franchisee/affiliate units and 2,600 company units. After reorganizing the company into segments based on the maturity and competitive position of its different markets, refranchising 4,000 locations, and eliminating $500 million in net annual SG&A expenses the past several years, the company is focused on "velocity growth accelerators" such as an Experience of the Future layout (counter, kiosk, web ordering and table service/curbside delivery), mobile ordering and payments, and delivery alternatives.

Is Travis Scott Pushing McDonald's Stock Into 'Sicko Mode'?
Thu, 17 Sep 2020 15:55:00 +0000
It's been less than two weeks since McDonald's (NYSE: MCD) teamed up with hip-hop superstar Travis Scott for a limited-time promotion, and it could be music to ears of the burger chain's shareholders. The Travis Scott Meal is a $6 combo meal that includes a Quarter Pounder with cheese, bacon, and shredded lettuce; paired up with a Sprite and a medium order of fries alongside a packet of barbecue sauce for dipping. McDonald's hasn't offered up how well the partnership is doing since its Sept. 8 launch, but at least one Wall Street pro is liking what he sees from his channel checks.

Bill Gates Liquidates Stake in Largest McDonald’s Franchisee
Thu, 17 Sep 2020 15:25:27 +0000
(Bloomberg) — Bill Gates’s investment firm sold its shares in the world’s largest independent McDonald’s Corp. franchisee, exiting a holding owned for more than five years.Cascade Investment no longer owns shares in Arcos Dorados Holdings Inc., having previously held a stake of about 7% in the company now worth almost $40 million, filings show. The Microsoft Corp. co-founder’s charitable trust, which previously held about 2.4%, also sold its shares.Cascade Investment and the Bill & Melinda Gates Foundation first invested in Arcos Dorados, an operator of McDonald’s stores across Latin America and the Caribbean, in early 2014. Shares in the Montevideo, Uruguay-based company — whose name means “Golden Arches” in Spanish — have since fallen by more than half. In August, Arcos Dorados reported a 60% drop in revenue for the three months ended June 30 from a year earlier, hurt by the coronavirus pandemic.Shares of Arcos Dorados slid about 1% to $4.27 at 10:59 a.m. in New York, and have tumbled 47% this year.Gates, 64, has parlayed the proceeds of Microsoft into a global empire of listed assets through Cascade Investment, ranging from railroads to agricultural businesses and construction firms. The Kirkland, Washington-based family office boosted its holding last month in private jet services company Signature Aviation PLC and was among the big winners of Vroom Inc.’s June initial public offering, when the used-car sales platform more than doubled in its first day of trading. Gates has a net worth of $123 billion, according to the Bloomberg Billionaires Index.A spokesman for Arcos Dorados declined to comment, while representatives for the Gates family didn’t immediately respond to requests for comment.(Updates with Cascade Investment’s activity in penultimate paragraph, Arcos Dorados response in last.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Travis Scott Broke McDonald's Supply Chain
Thu, 17 Sep 2020 14:52:05 +0000
Rapper Travis Scott's collaboration with McDonald's Corp (NYSE: MCD) is resulting in meat shortages because of the popularity of the new "Travis Scott Meal," a Quarter Pounder burger, fries, Sprite and a side package of BBQ sauce.The stock hit an all-time high above $226 per share on Wednesday afternoon.What Happened: Scott's relationship with McDonald's marks the fast-food chain's first collaboration with a celebrity since Michael Jordan in the early 1990s. On Wednesday, the company confirmed the success of the partnership is resulting in some locations completely selling out of the burger.Multiple apparel and unique merchandising as part of the Scott promotion have also sold out.McDonald's told CNBC it's "working closely" with suppliers, distributors, and franchisees to "resupply impacted restaurants." The statement also teased it has "more surprises" from Scott coming soon.> CACTUS JACK FOR MCDONALD'S https://t.co/48HdxmgwO4 pic.twitter.com/ke0a7U9g4n> > — TRAVIS SCOTT (@trvisXX) September 3, 2020Why It's Important: McDonald's navigated throughout the COVID-19 pandemic without experiencing supply chain issues. But the scope and reach of Scott's popularity prompted the chain to take temporary emergency measures.McDonald's typically waits for individual stores to place orders for products based on demand, according to CNBC. But now McDonald's will be sending out ingredients to restaurants based on its own internal calculations.McDonald's will transition its Scott meal to become a digital-only offer as of early October.Related Links:McDonald's Debuts Spicy Chicken McNuggets With Hilarious 'Spicesurance' Fine PrintRestaurant Roundup: Domino's Launches First New Pizza In Years, McDonald's And Papa John's Double Down On Chicken TrendSee more from Benzinga * McDonald's Debuts Spicy Chicken McNuggets With Hilarious 'Spicesurance' Fine Print * Black Former McDonald's Franchisees Say They Were Set Up To Fail * McDonald's Says Ex-CEO Easterbrook 'Breached Fiduciary Duties'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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