McDonald’s Corporation (MCD) Stock Hits New All-Time High, Remains Bullish
Shares of the iconic fast-food chain, McDonald’s (MCD), finally broke through the stubborn $179 level on Monday to hit a new record high around $181 before paring some of those gains in afternoon trading.
The company’s earnings report two weeks ago easily beat on both the top and bottom lines, prompting the stock to gap up and re-test its last major high back in January. The company also announced that it would raise its quarterly dividend by 15% to $1.16 per share for the fourth quarter; its dividend payout has been increasing steadily and reliably for many years. Additionally, positive analysts’ recommendations have been piling up and are overwhelmingly bullish on the stock.
But perhaps what matters even more than all of that is what Kanye West has to say. On Sunday, West simply tweeted: “McDonald’s is my favorite restaurant”. The tweet garnered over 240,000 likes and over 58,000 retweets as of Monday afternoon, possibly helping to fuel more buying of McDonald’s stock. Whether West’s warm sentiments towards the restaurant chain has any lasting effect on its stock remains to be seen. However, it’s undeniable that there is real bullish sentiment for MCD on Wall Street right now, and this could easily translate into further follow-through to the upside after Monday’s breakout.
The Technicals Rating
The Technicals gives MCD a bullish rating of 8 (on a scale of 1-10, with ’10’ being the most bullish and ‘1’ being the most bearish). Below are some of the key technicals for MCD, as well as other relevant information that paints a bullish picture of the stock:
- Price Position vs 200-Day SMA: +11.05% (above) – BULLISH
- Position vs 50-Day SMA: +8.53% (above) – BULLISH
- Position vs 20-Day SMA: +5.75% (above) – BULLISH
- 100-Day Trend Slope (Linear Regression): BULLISH
- 200-Day Trend Slope (Linear Regression): BULLISH
- Stochastics (14,3,3) Level: Overbought – BEARISH
- RSI (14) Level: Rising to Overbought – BEARISH
- Position in Bollinger Bands: Rising to Upper Band – BEARISH
- Sector (ETF: XLY) Long-Term 200-Day Trend: BULLISH
- Sector (ETF: XLY) Medium-Term 100-Day Trend: BEARISH
- Market (S&P 500) Long-Term 200-Day Trend: BULLISH
- Market (S&P 500) Medium-Term 100-Day Trend: BULLISH
- Short Interest Ratio: 0.96% – BULLISH
- Mean Implied Volatility (IV): 18.65% (52-week range of 12.44%-27.86%) – BULLISH
- Analysts’ Mean Target Price: $191.81 (above current price) – BULLISH
- Last Earnings Move: Sharp Gap Up – BULLISH
Overall The Technicals Rating for MCD: TTTTTTTTTT (8 out of 10) – BULLISH
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Chief Market Strategist at The Technicals
With more than two decades of experience as an equity analyst for several major research firms, Don has covered individual stocks (both technically and fundamentally) across a wide variety of sectors and industries, including tech, financial, and retail. He has been quoted regularly in key financial media like Bloomberg and Reuters. Contact Don