Shares of McDonalds were soaring in the past few sessions as the strategic plan of the prominent fast food chain provided a bullish path of the stock in the coming year. From the new delivery services and the growing number of outlets worldwide, McDonald’s lived up to the market expectation. The company has been living on its commitment in providing convenient solutions for customers on the go. Will the fast food juggernaut end the year in the offensive ground?
In the previous close of the market, McDonalds opened in 123.30 and settled at 123.29, advancing 0.74 percent. The stock had a session high of 123.29 and a session low of 123.56, the highest range for the fourth quarter.
McDonalds traded above its 20-day SMA of 122.87 and its 50-day SMA of 122.02. The resistance was found at 123.84 and support at 121.35. Apparently, the stock was away from its support level, indicating a bullish outlook for the next session.
The stock started at 115.000 level in the last quarter of the year, and now that we’re two-week away from the end, the stock was soaring at 123.000 levels. It seems McDonalds has properly implemented its strategic plan to sustain the investors’ interest.
The fast food giant will release its fourth quarter earnings report on January 23, 2017 and will be followed by a conference call webcast. Currently the market capitalization of the stock is $101.94 billion, with a price earnings ratio of 23.03 and dividend yield of 3.05 percent. The stock’s 52-week high was -4.45 percent, while its 52-week low was at 12.71 percent.
Steve Easterbrook stated during the third quarter earnings results that “Looking ahead, we are focused on growing global comparable sales and serving more customers while being mindful of the near-term challenges in several markets. We remain committed to driving long-term, profitable results while pursuing our goal of being recognized by our customers as a modern, progressive burger company.” These pledges would be highlighted next month.
Global Services and Outlets
As part of the franchising commitment of the company, McDonalds would keep its business in the mainland China. The second largest economy in the world, recently confirmed that it would still be part of the US fast-food chain’s menu. McDonalds has around 2,400 outlets in China an about to add 250 on an annual basis.
McDonalds has been mastering the local taste that would fit better for the Chinese consumers. Although the competition among other fast food chains is evidently tight and the Chinese market lives by its own rules, the company has shown a steadiness in conquering the headwinds.
Mr. Easterbrook initially wanted to widen the company’s franchising activity. The company follows its three-legged stool for its success- the collaboration and synergy of its employees, suppliers and franchises. Approximately, more than 80 percent of the company’s restaurants are owned by franchisees globally.
Meanwhile, the company has announced its plan to launch its very own delivery service in Florida through its partnership with UberEats. Around 200 restaurants in Orlando, Tampa and Miami will get to experience home delivery service starting January 2017.
Providing accessibility to its customers has been the main mantra of UberEats. This application lets everyone choose their orders and have them delivered at the front door. McDonalds may have seen this as an opportunity to go with the trend and to increase sales.
According to reports, McDonalds is gearing up for the release of its own mobile up in the beginning of 2017. In the meantime, it would likely use another party in catering the delivery concerns of its customers.
Taking into consideration the upcoming plans and partnership of the fast-food giant plus its stock movement, McDonalds will likely end the year with significant growth. As long as the strategies of the stock remain, the direction will be smooth for the stock. Adding to this, the consumer spending rallies during holiday seasons and all the sectors of the market benefit from this hype. Investors may just continue to love McDonalds.
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