It is called short squeeze and it is not based on valuation or any news. Since everyone knows MCD is in trouble and for sure next Q will be the 9th Q that sales will be down, some players try to squeeze shorts. Check out the traffics in MCD stores near your area and compare it with Starbucks, Chipotle. Check out WMT today, based on wage hike, the profit was down. The same thing will happen to MCD and many other restaurants. When you short any stock, do it in increments and always sell covered PUT to minimize damage .
I didn't touch my position, it might well be a short squeeze not backed by news. Still a big move for MCD.
Surprise !!. MCD May monthly sales were down again for 16 consecutive months. In 2 weeks it should be below 90 and then much lower.
Stupid management hires white house speaker for communication !!. what a waste of money. What they want to announce that is very important and needs someone with that high paying salary ? Just hire one of those burger flippers for $8 an hour to announce that your sales are down !!
McDonalds has moved from the place middle class people like to go on occasion, to the regular staple of the diet of the lower proles - and the very worst element of them as that. The problem with the lower proles is that they only buy the dollar menu Items and are extremely slow, stupid, and disruptive to the ordering process and the environment in the restaurants. U could not pay me to take my family to many of the McDonald's in Downtown Chicago. Filthy, smelly bumbs everywhere and misbehaving "kids" gyrating, yelling, potentially fights breaking out. That is the reputation, it went too ghetto for the Middle class. Get a decent tasting product, simplify menu, clean up the trashed out stores, service workers that do not threaten to punch you in the face and bust open your eyeball (as recently happened in Chicago) and get the police to remove loitering bums and "teens". That is a start. I think they can fix the chain, but its going to take work.
MCD has been meandering for 2 years. Buy and Holders would like nothing more than the acquire this stock while it dips below the MAs. Additionally, this stock catches a bid during a flight to quality. Best to move on to high beta names.
I think it is a reasonable prospect for a long term speculation on the turnaround. I will be looking at the Jan 2017 calls.
Exactly. How much could MCD lose? 10 dollars? 20 dollars? How long would it take ? 3 months ? 6 months? 1 year? And what are the probabilities for a large trading range 80/100 dollars for months? High. No interest to short MCD, tons of high reward opportunities everywhere in the market. CM