McDonald’s (MCD) Offering Possible 17.1% Return Over the Next 8 Calendar Days

McDonald's's most recent trend suggests a bearish bias. One trading opportunity on McDonald's is a Bear Call Spread using a strike $217.50 short call and a strike $222.50 long call offers a potential 17.1% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $217.50 by expiration. The full premium credit of $0.73 would be kept by the premium seller. The risk of $4.27 would be incurred if the stock rose above the $222.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for McDonald's is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for McDonald's is bearish.

The RSI indicator is at 24.69 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for McDonald's

Beyond Meat Drops 20% After McDonald’s News, and Two More Numbers to Know
Wed, 11 Nov 2020 10:00:00 +0000
The S&P 500 has gained at least 10% in six trading days through Monday. E-commerce giant Alibaba’s Singles Day is set to break records. But Beyond Meat takes a tumble.

Hillman Capital Management's Biggest Portfolio Changes for the 3rd Quarter
Tue, 10 Nov 2020 21:57:58 +0000
The firm exited several positions, reported 2 new buys

Beyond Meat and McDonald’s haven’t confirmed their work on the McPlant, which one analyst finds ‘extremely strange’
Tue, 10 Nov 2020 21:08:00 +0000
McDonald’s (MCD) announced Monday during its investor event that it would begin testing the plant-based McPlant sandwich next year. Last year, McDonald’s and Beyond Meat (BYND) conducted a test of plant-based burgers that ended without further discussion of next steps. McDonald’s said suppliers haven’t been announced yet.

4 McDonald's Analysts On Q3 Beat, Golden Arches Analyst Day
Tue, 10 Nov 2020 20:42:32 +0000
Global fast food giant Mcdonald's Corp (NYSE: MCD) reported third-quarter results Monday and laid out a vision of its future.The McDonald's Analysts Stephens analyst James Rutherford maintains an Overweight rating on McDonald's with an unchanged $250 price target.Raymond James analyst Brian Vaccaro maintains a Market Perform rating. Cowen analyst Andrew Charles maintains an Outperform on McDonald's with an unchanged $250 price target.KeyBanc Capital Markets analyst Eric Gonzalez maintains an Overweight on McDonald's with a price target lifted from $225 to $235.Stephens Recaps McDonald's Q3 McDonald's reported third quarter same-stores sales growth of 4.6% in the U.S. but a 4.4% decline in the International Operated markets and 10.1% drop in International Developmental markets, Rutherford said in a note.These figures were in line with the Street's expectations and consistent with management's pre-release, the analyst said. Revenue of $5.418 billion beat consensus estimates of $5.345 billion, while EPS of $2.22 compared favorably to the Street's estimate of $1.92.McDonald's noted during its conference call that U.S. comps for October were higher by a mid-single-digit and represent a “notable slowdown” from September's low-double-digit growth, Rutherford said.This was expected, and investors may see further “choppiness” in results going forward amid growing COVID-19 infection rates and restrictions worldwide.Related Link: McDonald's CEO Talks Plant-Based BurgerRaymond James On New McDonald's Growth Strategy In conjunction with McDonald's third-quarter report, the fast food company laid out a new growth strategy dubbed “Accelerating the Arches,” Vaccaro said in a note.The main takeaways are: * Evolving and maximizing a marketing strategy. * Improving core menu items like chicken sandwiches and McNugget flavor extensions. * A new “MyMcDonald's” digital experience that includes a loyalty program and increased personalization. * Testing new strategies to speed up the drive-thru and digital orders.Cowen's 3 Key Takeaways On McDonald's McDonald's served investors a “compelling” playbook to support U.S. comp growth in 2021 and beyond, Charles said in a note. There is reason to believe that sustained U.S. sales growth can offset increases in capital expenditures and G&A expenses, the analyst said. He named three takeaways from the strategy: * Celebrity tie-ins to attract Gen Z customers will continue, with a new partnership expected to launch by the end of 2020 and another in early 2021. * McDonald's 2019 acquisition of artificial intelligence speech recognition company Apprente will play a role in 2021. Specifically, the use of an AI drive-thru ordering system could help with faster throughput and potentially drive higher sales through selling opportunities. * McDonald's is looking at its global business to see where it can improve the U.S. business. For example, burger enhancement learnings from Canada and Australia or chicken sandwich launches in the Netherlands and Germany can be applied to future U.S. menu changes.KeyBanc: Investing For Long-Term Gains While McDonald's initiatives will likely limit any free cash flow growth in the near-term, it will sustain a longer-term competitive advantage, Gonzalez said in a note.McDonald's likely recognizes that a constant level of investment is required to stay ahead of the competition, the analyst said. McDonald's is expected to leverage the popularity of its “Famous Orders” marketing campaign with new initiatives, he said.The next celebrity collaboration is likely to come before the end of 2020 and may focus on a family bundle, Gonzalez said. A new Crispy Chicken Sandwich should come out toward the end of the first quarter of 2021 or in the early second quarter, the analyst said. McDonald's wants to make sure it has an adequate supply and avoids the stock-outs that were seen earlier this fall, according to KeyBanc. MCD Price ActionShares of McDonald's were trading down slightly at $213.01 at last check Tuesday. Courtesy photo. See more from Benzinga * Click here for options trades from Benzinga * Analyst Breaks Down Leisure Industry's Near-Term Outlook, Hotel Pricing Power * Beyond Meat Analysts Debate If The Stock Now Has Big Opportunity Or Major Headwinds(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Beyond Meat's Wild Ride Goes Beyond McPlant
Tue, 10 Nov 2020 19:29:54 +0000
(Bloomberg Opinion) — Investors took a bite out of Beyond Meat Inc.’s share price on Tuesday after a wild ride the day before amid confusion over its involvement with McDonald’s Corp.’s plans to develop a “McPlant” meatless burger. Those fuzzy plans weren't the only thing weighing on shares, though. On Monday evening, Beyond Meat reported sales growth that was well below analysts’ expectations, a shift it blamed in part on the oddities of Covid-19-era consumer behavior. In particular, executives said America’s freezers were full, making it harder for its lineup of plant-based meat alternatives to get on the shopping list. The stock plunged 15%. The early days of the pandemic prompted a highly unusual wave of panic-buying; since then, investors have focused on how the consumer staples industry is recovering from and grappling with stockpiling. Less discussed is the companion behavior, destocking, in which consumers work through their stashes. The situation at Beyond Meat suggests this aftermath of pantry-loading also has the potential to create meaningful volatility and disruption for these companies, adding to their already-long list of challenges.Beyond Meat said third-quarter sales at its retail division were up 39% from a year earlier, a far slower pace of growth than the 192% increase it recorded in this segment in the quarter ended in June. Sales growth was held back by aggressive promotions aimed at getting more shoppers to try their product, and intense competition likely also played a role. Meanwhile, revenue from its food-services unit slumped as restaurants remained challenged. But executives also emphasized that a major component of the slowdown was the secondary effect of the initial wave of pantry-loading.Other consumer staples companies have noted such a pattern. Back in July, Colgate-Palmolive Co. said it saw softness in many categories in its European business because of this behavior. J.M. Smucker Co. said that pantry destocking affected its latest quarterly sales of dog food. That makes sense. After all, it’s not like dogs went out to restaurants before the pandemic, so it stands to reason people wouldn’t be working through those stashes especially quickly. It’s a similar story in the feminine-care aisle. After a major spike in sales in this category in the beginning of the pandemic, data show sales cooled dramatically for a while, as women presumably used up the products they grabbed in a panic in March.  Beyond Meat’s downside surprise – and the reasons behind it – may be a foretaste of how choppy things could be for all sorts of consumer staples makers in the coming months. Just as the pendulum swung from stockpiling in the spring to destocking in certain categories in the latest quarter, it may soon swing right back again to stockpiling.The U.S. is recording a fresh increase in Covid-19 cases, raising the specter of another period of stay-at-home orders. More generalized fears about the pandemic potentially worsening in the winter – and colliding with flu season – could also spur people to prepare to be more strictly hunkered down. That has led to chatter about a potential second wave of stockpiling. Doug McMillon, CEO of Walmart Inc., said in October that his company was starting to see “stock-up behavior” again in certain local markets as Covid-19 cases rise. Kroger Co. is putting limits on how many packages of toilet paper customers can buy per trip, an effort that appears aimed at avoiding empty shelves should the stockpiling mind-set take hold again.Shoppers’ unpredictable behavior will make it extremely difficult for newcomers like Beyond Meat as well as stalwart retailers and packaged food giants to deliver steady sales results in the near future.  Beyond Meat’s wild ride may just be the beginning.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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