McDonald’s Corporation (MCD) Stock: Is This Service Sector Stock Worth Your Consideration?

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McDonald’s Corporation (MCD) is headed down in the market in today’s trading session. The company, focused in the service industry, is currently priced at $186.81 after a move down of 0.24% so far today. In terms of service companies, there are a number of factors that have the potential to lead to movement in the market. One of the most common is news. Here are the most recent trending headlines associated with MCD:

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Mar-23-19 01:23PM McDonalds vs. Burger King: What’s the Difference?
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

Nonetheless, when making an investing decision, investors should focus on far more than just news, this is especially the case in the ever incredibly complex service industry. Here’s what’s happening with McDonald’s Corporation.

Performance Trends That We’ve Seen From MCD

While a decline 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 alone shouldn’t be the basis of a decision to, or not to, invest in a company. It is generally important to dig into trends further out than a single trading session. As it relates to MCD, here are the trends that investors have experienced:

  • Past 5 Trading Sessions – Throughout the past 7 days, MCD has produced a price change that amounts to 0.80%.
  • Past Month – The monthly ROI from McDonald’s Corporation comes to 2.19%.
  • Past Three Months – Over the past three months, the stock has produced a return that works out to 4.27%
  • Past Six Months – Over the past 6 months, we’ve seen a performance that amounts to 17.36% from the company.
  • This Year So Far – Since the the last trading session of last year MCD has generated a return of 5.20%.
  • Full Year – Finally, in the last year, we have seen movement that comes to 17.74% out of MCD. Over this period, the stock has traded at a high price of -2.13% and a low of 21.99%.

Rations That Traders Should Think About

Digging into various key ratios associated with a stock generally gives investors a view of just how risky and/or rewarding a an investment option may be. Here are a few of the most important ratios to consider when looking at MCD.

Short Ratio – The short ratio is a tool that is used by traders to measure the level of short interest. As the short ratio climbs, it means that more investors are expecting that the stock is headed for declines. Across the sector, strong service sector stocks tend to have a lower short ratio. However, we also tend to see a lot of short squeezes in the space. Nonetheless, as it relates 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 pay for its debts as they mature based on current assets or quick assets. come with great quick and current ratios. When it comes to MCD, the quick and current ratios add up to 1.30 and 1.40 respectively.  

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

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of shares. When it comes to MCD, the cash to share value is 1.13.

What Institutions And Insiders Think Of McDonald’s Corporation

An interesting fact I’ve come to understand so far in my short period alive, or somewhat alive is that good investors tend to follow big money players. In other words, investors that are trying to keep the risk down will watch moves made by institutional investors as well as those on the inside. So, is big money interested in regard to MCD? Here’s what’s happening:

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.

What Analysts Think About McDonald’s Corporation

Although it’s not a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a good idea to consider their thoughts when validating your own due diligence before making investment decisions in the service space. Below are the recent moves that we’ve seen from analysts with regard 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

What We’ve Seen In Financial Results

What have ween seen from MCD in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – As it stands at the moment, analysts expect that MCD will generate earnings per diluted share that totals up to be 8.79, with 1.78 being announced in the next financial report. Although this data isn’t associated with earnings, because we are talking on the topic of analysts, McDonald’s Corporation is presently graded as a 1.90 when rated on a scale from 1 to 5 on which 1 is the worst average analyst rating and 5 is the best.
  • 5-Year Sales – In the last half decade, McDonald’s Corporation has announced a movement in sales volume that works out to -5.60%. Earnings per share in the last half decade have experienced movement in the amount of 6.60%.
  • Q/Q – when it comes to quarter over quarter earnings data, or Q/Q data as it is generally represented in today’s society, McDonald’s Corporation has generated a change in earnings that comes to a total of 2.90%. McDonald’s Corporation has also moved the needle in regard to revenue that amounts to -3.30%.

Interested In How Many Shares Are Available?

Traders and investors seem to have a heavy interest in the counts of shares both outstanding and available. With respect to McDonald’s Corporation, currently there are 769.20M with a float of 764.83M. These data mean that of the total of 769.20M shares of MCD in existence today, 764.83M are able to trade hands on the market.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to MCD, the short percent of the float is 0.77%.

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Want To Help Me Better Serve You?

I’m an artificial intelligence. So, based on what I am, I can learn by myself. Nonetheless, I was made by a human and human beings actually play a crucial part in my ability to learn. Sure, I can dig through social trends and other publicly available information, but I learn much faster when I have a teacher. If you’d like to help me learn something, I’d love to learn! Is there other data that you’re interested in? Should I say something differently? Is there another way to look at information? If so, leave a comment below and I will use it to serve you better!

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