McDonald’s (MCD) Offering Possible 70.07% Return Over the Next 7 Calendar Days

McDonald's's most recent trend suggests a bullish bias. One trading opportunity on McDonald's is a Bull Put Spread using a strike $215.00 short put and a strike $210.00 long put offers a potential 70.07% return on risk over the next 7 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $215.00 by expiration. The full premium credit of $2.06 would be kept by the premium seller. The risk of $2.94 would be incurred if the stock dropped below the $210.00 long put strike price.

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

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

The RSI indicator is at 33.19 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for McDonald's

Chipotle To Open First Ghost Kitchen For New Era Of Dining
Wed, 11 Nov 2020 21:06:46 +0000
Chipotle Mexican Grill said that it would open its first restaurant geared solely toward digital ordering.

Arcos Dorados Holdings Inc (ARCO) Q3 2020 Earnings Call Transcript
Wed, 11 Nov 2020 21:00:45 +0000
At this time, I'd like to turn the conference call over to Dan Schleiniger, Vice President of Investor Relations. With me on today's call are Marcelo Rabach, our Chief Executive Officer; Mariano Tannenbaum, our Chief Financial Officer; and Luis Raganato, our Chief Operating Officer. Today's call will contain forward-looking statements and I refer you to the forward-looking statements section of our earnings release and recent filings with the SEC.

Beyond Meat pizza will help Pizza Hut become America's favorite again, interim president says
Wed, 11 Nov 2020 18:32:20 +0000
Pizza Hut is on a mission to turn itself around. Here's how Beyond Meat plans to help.

McDonald's Takes a Big Step Forward
Wed, 11 Nov 2020 17:00:00 +0000
Investors were already expecting good news from McDonald's (NYSE: MCD) in its third-quarter earnings report. The burger chain's full results added context to that headline sales figure, including in key metrics like customer traffic, promotional spending, and market share. At a glance, investors might see McDonald's Q3 revenue trends as a return to normal.

Is McDonald's A Restaurant — Or A Real Estate Empire?
Wed, 11 Nov 2020 13:20:50 +0000
McDonald's Corp (NYSE: MCD) is a business where consumers walk into a location and exchange money for food or beverages. By every definition, this makes it a restaurant.But digging behind the numbers makes the case that McDonald's is more of a real estate company than a fast-food chain, according to the popular YouTube channel The Food Theorists.The History: McDonald's generates more money from royalty revenue and rent payments from franchisees than it does from actually selling food to customers, according to The Food Theorists. To explain this concept, the video reviews McDonald's early history.Ray Krock teamed up with the founders of McDonald's to expand the chain across the U.S. in the 1950s.While Krock was successful in expanding McDonald's presence, Harry Sonneborn is credited with convincing the McDonald's team to switch their strategy. This conversation was featured in the 2016 film “The Founder.”Sonneborn argued that McDonald's shouldn't be in the burger business, and rather said it needs to be in the real estate business. It's difficult to build an empire by taking a 1.4% royalty fee on a 15-cent hamburger. Instead, the view was that McDonald's should own the land where each burger is cooked.The franchising model evolved to consist of a franchisee paying an upfront fee to McDonald's, but under one important condition: the franchisee must operate out of a building McDonald's owns on land it also owns — and pay rent. This is in addition to regular royalty payments.See Also: Making Sense Of McDonald's Q3 ResultsFact-Checking McDonald's Q3 Results: McDonald's reported third-quarter results that provide an opportunity to put the numbers to the test in 2020.Approximately 7% of all McDonald's stores are company-owned and operated. This means that the remaining 93% of stores pay some form of rent and royalty to the corporate office.According to the third-quarter report, the revenue generated through food sales at company-operated restaurants was $2.2864 billion, while revenue from franchised restaurants were $3.0448 billion.So there we have it. McDonald's generates more revenue from sitting back and collecting rent checks and royalty payments than it does by selling food at its own corporate-owned locations.Photo by Bryan Hong via Wikimedia. See more from Benzinga * Click here for options trades from Benzinga * 4 McDonald's Analysts On Q3 Beat, Golden Arches Analyst Day * 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.

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