2016-08-08 17:05:36

McDonald`s Corp., #MCD [NYSE]
Services, Restaurants, USA

Financial performance of the company:

Index – DJIA, S&P 500; Beta – 0.49;
Capitalization – 108.94 В; Return on asset - 13.50%;
Income - 4.53 B; Average volume – 7.04 М;
P/E - 22.70; ATR – 2.52

Analytical review:

  • ​The company ranks the first on capitalization among the issuers in the sector of “restaurants” traded in the American stock market;
  • At the end of July the company issued a report for Q2 of the fiscal year of 2016. Over the past two weeks stocks of McDonald`s Corp. fell by over 7.5%. During trading session last Friday the issuer rose in price by over 0.75%. Upward correction can continue;
  • According to the press-release, company’s revenue fell by 4%, to 6.265 billion USD, due to pressure from the strong USD. Net profit in the reported period amounted to $1.25 per share against the forecast of $1.38 per share;
  • McDonald`s Corp. Is incorporated into the indices DJIA and S&P 500. The rise in the American stock market has a positive impact on the shares of the company. This month ETF for the index S&P 500 (#SPY) rose by over 4%, which the new historic highs;
  • Financial multipliers also indicate possibility of the rise in company’s stocks. MCD P/E Ratio (22.70) is much lower than the average P/E in the industry (90.39) and in the sector (26.17). Efficiency of the company is demonstrated by the high operation margin (30.05%) and net profit (18.84%) compares with the similar companies in the industry (6.95% and 5.08% respectively);
  • Technical analysis also shows that correction in the shares of McDonald`s Corp. may continue. The price has consolidated at support level of 117.85 USD. MACD histogram is in the positive zone and continues to rise.


  • Despite deterioration of the company’s results, McDonald`s Corp has strong growth potential. Multipliers’ analysis shows that company’s stocks are likely to grow.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of McDonald`s Corp.

Key levels:
Support levels: 117.85 USD and 116.65 USD.
Resistance levels: 119.90 USD, 122.00 USD and 124.10 USD.

Medium-term trading, Н1
At the moment the issuer is traded in the demand zone of 117.85-118.90 USD. If the price maintains this zone and n case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 121.00 USD, 122.50 USD and 124.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading, М15
The issuer is traded between the local support and resistance levels of 119.05/119.40 USD. We recommend to enter the market after breaking out and testing of these levels. Positions shall be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15