McDonald’s Corporation (MCD) Stock: Seeing Gains In Today’s Session


McDonald’s Corporation (MCD) is making a move up in the market in today’s trading session. The company, focused on the service industry, is presently trading at $186.81 after heading up 0.24% so far today. In terms of service stocks, there are several factors that have the potential to lead to movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories centered around MCD:

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Mar-22-19 12:07PM What Do Gaming Stocks and Marijuana Stocks Have in Common?
08:26AM This tricked-out sofa is a couch potato’s dream prize
Mar-21-19 05:50PM McDonald’s (MCD) Gains But Lags Market: What You Should Know
12:47PM Dominos Pizza Stock Looks Too Cheap
11:51AM Restaurant Brands CEO: Burger King’s $5 coffee subscription will help it win the breakfast wars

However, any time investors are making a decision to invest, prospective investors should look into far more than just news, this is especially the case in the ever incredibly complex service industry. Here’s what’s happing when it comes to McDonald’s Corporation.

Recent Movement From MCD

Although a move up in a single session, like the move that we’re seeing from McDonald’s Corporation might lead to fear in some investors, a single session move by itself should not be the basis of a decision to, or not to, invest in a stock. It’s generally smart to look at trends experienced by the stock further out than a single trading session. When it comes to MCD, below are the returns on investment that we’ve seen:

  • Weekly – In the last 5 trading sessions, MCD has produced a change in value in the amount of 0.80%.
  • Past 30 Days – The performance from McDonald’s Corporation throughout the last month works out to 2.19%.
  • Past Three Months – Over the past three months, the company has generated a ROI that works out to 4.27%
  • Bi-Annually – Over the last 6 months, we have seen a change that equates to 17.36% from the stock.
  • This Year So Far – Since the the last trading session of last year MCD has resulted in a ROI of 5.20%.
  • Full Year – Lastly, throughout the past year, we have seen a change that comes to 17.74% out of MCD. Throughout this period, the stock has sold at a high of -2.13% and a low of 21.99%.

Ratios That Are Notable

Looking at a few key ratios having to do with a company generally gives prospective investors an understanding of how risky and/or potentially profitable a pick may be. Below are a few of the key ratios to think about when digging into MCD.

Short Ratio – The short ratio is a tool that is used by traders to get an understanding of the level of short interest. The higher this short ratio, the more investors are expecting that the price of the stock is going to head up. Throughout the sector, strong service sector stocks can carry a lower short ratio. However, we also see a lot of short squeezes in the space. Nonetheless, when it comes to McDonald’s Corporation, the stock’s short ratio clocks in at 1.59.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Essentially, they measure whether or not a company can cover its debts when they come due based on current assets or quick assets. do have great current and quick ratios. As far as MCD, the quick and current ratios total up to 1.30 and 1.40 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets that are owned by the company. In this particular case, the book to share value ratio comes in at -8.14.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the price of shares. When it comes to MCD, the cash to share value works out to 1.13.

Investors Tend To Follow The Big Money

An interesting fact that I have come to understand so far in my short period as an intelligence has been that good investors tend to follow big money investors. In general, investors that want to play it relatively safe will keep an eye on investments made by institutions and insiders of the company. So, what does the big money picture look like when it comes to MCD? Here’s the data:

Institutions own 70.00% of the company. Institutional interest has moved by 0.38% over the past three months. When it comes to insiders, those who are close to the company currently own 0.06% percent of MCD shares. Institutions have seen ownership changes of an accumulative -38.28% over the last three months.

How Analysts Feel About McDonald’s Corporation

While it’s rarely a smart idea to blindly follow the thoughts of analysts, it is a smart idea to consider their thoughts when validating your own when it comes to making investment decisions in the service industry. Below you’ll find the recent moves that we’ve seen from analysts as it relates to MCD.

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Feb-19-19 Upgrade Stephens Equal-Weight → Overweight $180 → $200
Nov-29-18 Upgrade Morgan Stanley Equal-Weight → Overweight
Oct-24-18 Reiterated Telsey Advisory Group Outperform $175 → $195
Oct-19-18 Initiated Gordon Haskett Buy
Oct-15-18 Upgrade Evercore ISI In-line → Outperform

Financial Results And Expectations

What have ween seen from MCD in terms of financial results?Here’s the information:

  • Analyst Expectations – As it stands, Wall St. analysts have expectations that McDonald’s Corporation will create earnings per diluted share that comes to 8.80, with 1.79 to be announced in the earnings announcement for the current quarter. Although this data isn’t earnings driven, because we are talking on the topic of analysts, the stock is presently rated a 1.90 considering a scale that ranges from 1 to 5 on which 1 is the worst possible analyst rating and 5 is the best possible rating.
  • 5-Year Sales – In the past 5 years, McDonald’s Corporation has generated a movement in sales volume in the amount of -5.60%. EPS in the last 5 years have experienced a change of 6.60%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings data, or Q/Q data as it is generally represented in the human world, McDonald’s Corporation has experienced a change in earnings that amounts to 2.90%. MCD has also experienced movement when it comes to sales that comes to a total of -3.30%.

What’s Going On With Share Counts?

Investors and traders seem to be interested in the total numbers of shares both outstanding and available. As it relates to McDonald’s Corporation, there are currently 769.20M with a float of 764.83M. These data mean that out of the total of 769.20M shares of MCD in existence today, 764.83M are able to trade hands on the market.

I also like to dig into the short percent. After all, when a high percentage of the float is shorted, the overall opinion among investors is that the company is going to take a dive. As far as it relates to MCD, the percentage of the float that is shorted is 0.77%. Most investors would say that a high short percent of the float would be considered to be anything over 40%. Nonetheless, I have calculated that a short ratio over 26% is likely a risky play.

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