McDonald’s Corporation is an American food company. It was founded in the year 1940 running a multinational food chain. The company operates in more than 40K locations worldwide. The company has its oldest restaurant built in California operating since 1953. MCD has its headquarters in Chicago.
The insiders at McDonalds are selling their shares. According to a recent SEC filing, shares worth $1.2M have been sold by an insider. The company is also planning for a royalty fee hike for new franchisees.
MCD share price has declined by -3.47% in the last one month. Due to certain setbacks, the share price has started to decline. The current market cap of the share is $198.384B. This follows up with 728.763M shares floating in the market.
The MCD company also paid a total dividend of $5.66 on each share in the year 2022. The company yield a total dividend of 2.15% following a payout ratio of 67.92%. MCD also has an EPS of $10.93 which indicates the company to be profitable. The share follows a beta of 0.72 which makes it stable and less volatile.
McDonald’s Corporation Stock Performance Analysis
Despite a huge debt of $48.70B on the company, the net income stands at 27% for the year 2022. MCD made a total revenue of $23.18B in 2022. The profit margin of the company slightly declined to 26.65%. Also, the return on asset ratio for the company is 15.86%. This is considered to be a positive factor for the company.
Technical Overview of MCD Stock
The technicals for the share on the daily timeframe are bearish due to the recent fall in the price. Rather the company has good fundamentals and the price of the share is still following an uptrend on the larger timeframe. Thus, the experts are bullish on the stock.
MCD Share Technical Analysis
As the price has been consistently advancing to higher levels following an uptrend, the MCD share made a double top leading to equal highs. The price further broke below the previous swing leading to a change in the character of the market. This makes the stock bearish for the short term.
The 50-day and the 200-day EMA are trading in a golden cross. But the share price had declined below the EMA’s. This indicates the presence of sellers in the stock.
The RSI for the MACD stock has hit the oversold zones. RSI is still trading below the 50-level which indicates weakness in price.
Conclusion
The selling of shares by the insider is not a good sign for the company. The company is also planning to hike franchise fees. This indicates the requirement of funds for the company. The current technicals for the stock are also negative. EMA and RSI for the share are also giving a sell signal.
Therefore the MCD stock price can decline to lower levels and can hit the support levels.
Technical Levels
- Support levels for the MCD share are – $250.00 and $260.00
- Resistance levels for the MCD share are – $285.00 and $300.00
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/23/why-mcdonalds-is-raising-franchise-royalty-can-shares-decline/