Technical Insights on McDonald’s Corporation (NYSE:MCD)

[Barron’s] McDonald’s Corporation (NYSE:MCD)(TREND ANALYSIS) has been struggling to keep up with fast-food peers like Wendy’s (WEN), and fast-casual restaurants like Chipotle Mexican Grill (CMG). At an investors breakfast this morning, CEO Steve Easterbrook discussed his plans to reverse McDonald’s fortunes. Citigroup’s Gregory  Badishkanian and team explain:
McDonald’s first priority is returning its key markets to growth and believes that this will provide the greatest shareholder value creation. Following this the company will address other financial priorities that don’t impact sales. President and CEO Steve Easterbrook is revisiting ways to enhance shareholder value and has not made any decisions (regarding levering balance sheet and creating a REIT), though the team articulated some reasons to maintain their current direction…

Management noted McDonald’s was not innovating at a fast enough pace and needed to operate with a greater sense of urgency (i.e. shortening the speed to implement an initiative). Management also didn’t have a high enough tolerance to risk…

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MCD is expected to report next quarter earnings on April 22. The Restaurants company’s earnings per share consensus Street estimate stands at $1.07.

McDonald’s Corporation (NYSE:MCD) is currently trading 5.92% below its 52-week-high, 11.44% above its 52-week-low. The 12-months range for the stock is $87.62 – $103.78. McDonald’s Corporation (MCD) has a price to earnings ratio of 20.26 versus S&P 500 average of 18.51. MCD stock price has outperformed the S&P 500 by 4.6%. The Restaurants company is currently valued at $93.84 billion and its share price closed the last trading session at $97.64. The stock has a 50-day moving average of $96.53 and a 200-day moving average of $94.1.

McDonald’s Corporation (MCD) current short interest stands at 15.77 million shares. It has increased by 9% from the same period of last month. Around 2% of the company’s shares, which are float, are short sold. With a 10-days average volume of 7.16 million shares, the number of days required to cover the short positions stand at 2.3 days.

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There are currently twenty-eight analysts that cover MCD stock. Of those twenty-eight, six have a Buy rating, nineteen have a Hold rating and three have a Sell rating. On a consensus basis this yields to a Hold rating. The consensus target price stands at $100.11.

A recent analyst activity consisted of Barclays reiterating their Overweight stance on March 13. Barclays increased their price target on MCD from $96 to $105. This corresponds to a 7.54% upside from the last closing price. On the date of report, the stock closed at $96.35.

RBC Capital Mkts upgraded their Sector Perform rating to Outperform on March 4, and increased their price target on MCD from $93 to $115. This corresponds to a 17.78% upside from the last closing price. On the date of report, the stock closed at $100.25.

Company profile

McDonald’s Corporation franchises and operates fast-food restaurants in the global restaurant industry. The Company’s restaurants serve a variety of value-priced menu products in countries around the world.

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