We have McDonald's, which is suffering from a decline in consumer demand for restaurants. There is a lot of competition in this field. They now have their strategy for the next ten years, which did not receive a good reception yesterday, but they are rising today in the wake of Investor Day.
MCD
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McDonald's shares rose today after facing a tough day yesterday following its first investor day in nearly 3 years. It seems that despite setting strategic plans and financial targets, investors were not very impressed by their statements , especially regarding the macroeconomic outlook and the huge amount of money they would have to spend on franchises.
But to begin with, I want to start with McDonald's. Their stock is down 4.81% and has lost 21% in the past year. Excluding yesterday's intraday fluctuations , the stock is now at a 52-week low.
And if we look at 5 years, McDonald's stock has fallen 3% in the last 5 years. So, is this recent price drop a buying opportunity? Let's look into this matter.
Now, there is one name that has very little to do with the story of artificial intelligence, at least not yet, and that is "McDonald's". Now , McDonald's has been crushed . Basically, they're trying, you know, they've seen their share of the fast-food market decline, and they're trying to make big changes.
With changes come many costs, and it is also an admission that profits will not be as they had hoped. But the stock was in a major oversold condition before this news, which yesterday reduced it by 5%.
We have actually reached a major technical level.
What is this arrow? McDonald's. McDonald's. Oh my God, yes. As you know, this is n't a stock we talk about much on the channel, but do you know why we're talking about it today?
The stock has plummeted by more than 30% since March. So, how long is that period? About 6 months? The stock has fallen by more than 30%. This is a huge crash for a stock like McDonald's.
Uh, next up, McDonald's. On the inverse side of the coin, you can see here McDonald's over the past several days here, uh, from July all the way through August was doing its best to try to maintain within this inclining parallel channel that started back here from March of 2022.
Over the most recent trading days, it could not hold it, guys. Even plunged further today.
McDonald's, look at this huge drop in McDonald's stock price . Why are McDonald's shares being sold ? Well, McDonald's shares are being sold because it announced a plan to reinvest in the company.
This plan involves investing huge sums in companies to increase their profit margins to about 50% by 2030, in addition to modernizing and improving the quality of their food and restaurants. correct?
But looking at the graphs here, why this decline then? All of this sounds good. Increased profit margins, and a good infrastructure development plan . But much of this investment is upfront. correct?
Therefore, investors are concerned that McDonald's will spend too much money too quickly . So I will withdraw. I'm not interested in that. But I am very impressed with this level of McDonald's stock as a potential trading opportunity.
We are seeing levels we haven't seen since 2022. If the decline continues, we could be heading to our lowest levels since 2021 or even lower . Okay, but I definitely expect a bounce before that, at least a technical bounce.
McDonald's stock has fallen by almost 31% since March, so it is certainly a candidate for a rebound.
All right. So, again, looks good on Nike, looks good on Clorox. I mean, there's a You can look at so many of these out there. They all look relatively the same. They've been beaten up.
McDonald's. I mean, heck, even McDonald's. Look at this one here. Uh McDonald's, by the way, I am watching this one. If this somehow can get down to this lower band of this parallel, I love it.
It's still got a little ways to go, but it is getting there. But look at how beaten up McDonald's is. I mean, incredible. Now, again, you can like McDonald's, you can hate McDonald's.
Frankly, I couldn't care less. All I care about is what the chart is doing and saying, and whether or not I'm getting the triggers or the signals to be a buy or a short.