MCD should drop below 94.5 by today close. If it does, check out the chart, tt hits one of the main thresholds to go much lower.
You forgot to ask yourself, is MCD profitable? Instead of 30%, if they lost all 100% of their business in Japan, would they still be profitable? The answer is yes and yes. So I am not sure how you see a profitable business going bankrupt within 5 years. If sales continue to decline, do you think MCD will just give up and quit? They will adapt if they have to, and I know they have been trying to adapt for more than a decade, but its hard to have a real sense of urgency when you are still making Billions in profit each year and your stock is still relatively close to all time highs.
I really enjoy ready different comments. I believe the main danger point is when EPS is goes close to or below dividend rate. Now the Q dividend is 0.85. If the EPS goes to 0.85+0.1x 0.85 =0.94 cents per share or lower, that is the alarming point.
Do they publish how much of their revenue is from breakfast lunch and dinner? I can recall when they didn't offer breakfast. Now I think it's their best effort.
MCD reported the earning before open today. Missed 5 cents (read it 5%) on earning from 1.06 to 1.01. $1.06 was the lower guidance by the analysts. The stocked went down to $94 and then went up just because they claim turnaround is planned. Stock is up because of short squeeze and the fact that everyone was expecting lower numbers by MCD. MCD should start to go lower in the coming days and weeks. Turnaround? what turnaround? what is the plan? everything that they are doing is already tested and does not work. Turnaround now means closing more unprofitable and less traffic stores. It is not a good sign.
if the market pushes up underperforming stocks after earnings and also outperforming stocks, there is a fundamental problem with valuations.