Can McDonald’s Find Support Post-Earnings?
T = Trends for a Stock’s Movement
McDonald’s franchises and operates McDonald’s restaurants in the United States, Europe, Asia Pacific, the Middle East, Africa, Canada, and Latin America — so just about every part of the world. Its restaurants offer various food items, soft drinks, coffee, and other beverages as well as breakfast menus. The products provided by McDonald’s fulfill cravings at competitive prices in convenient locations worldwide. The McDonald’s craze shows no signs of slowing, so the company has continued its expansion to just about every nation on the globe. As consumers continue to enjoy McDonald’s products, look for it to see rising profits.
McDonald’s reported earnings on Monday morning that showed the fast food chain has performed better this quarter than many of its peers, according to Reuters. McDonald’s reported a 4 percent rise in profit for the quarter with a net income of $1.52 billion, or $1.52 per share. In the third quarter of last year, McDonald’s posted $1.46 billion, or $1.43 per share. Analysts from Consensus Metrix only expected an increase of 1 percent.
T = Technicals on the Stock Chart Are Mixed
McDonald’s stock has traded sideways in the last couple of years. The stock is currently trending lower and is getting closer to lows for the year. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, McDonald’s is trading below its key averages, which signals neutral to bearish price action in the near term.