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May 28, 2023

Comparing MCD and YUM: Long-Term Analysis, Fundamental Ratings, and Short-Term Technical Analysis

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To compare two companies, MCD and YUM, we have conducted a long-term analysis based on fundamental ratings and a short-term analysis using technical indicators. Based on our findings, both companies receive a Strong Sell recommendation.

In terms of stock prices, MCD is currently priced at $286.04, while YUM is priced at $129.86. Both companies enjoy notable brand notoriety and operate within the Restaurant industry. However, when comparing the current volume relative to the 65-day Moving Average, MCD stands at 90%, whereas YUM is at a higher 148%.

Looking at market capitalization, MCD has a value of $208.84 billion, while YUM is valued at $36.37 billion. It's important to note that the market cap for tickers in the Restaurant industry ranges from $208.84 billion to $0, with an average of $6.7 billion.

For a long-term outlook, we employ Fundamental Analysis (FA) ratings. These ratings range from 1 to 100, with 1 being the best and 100 being the worst. The ratings are divided into thirds: the first third (1-33) indicates undervaluation, the second third (34-66) suggests fair valuation, and the last third (67-100) signifies overvaluation. By using an FA Score, we determine the number of ratings that show a ticker to be undervalued (green) or overvalued (red).

MCD's FA Score reveals 4 green ratings and 1 red rating, while YUM's FA Score shows the same distribution. According to our analysis, MCD is considered a better buy in the long term compared to YUM.

For a short-term outlook, we rely on Technical Analysis (TA) indicators. We evaluate the Odds of Success, which represent the percentage of successful trade signals based on past data. A green percentage (90% to 51%) indicates a bullish trend, a red percentage (90% to 51%) indicates a bearish trend, and all grey percentages (below 50%) suggest an unconfirmed trend signal.

Both MCD and YUM exhibit 5 bullish TA indicators and 4 bearish ones. Consequently, both companies are considered good buys in the short term.

Regarding recent price changes, MCD experienced a -3.22% decline this week, while YUM's price dropped by -5.65% within the same time period. Comparatively, the average weekly price growth across all stocks in the Restaurant industry was -1.19%. Over the month, the average price growth for the industry was +0.48%, and over the quarter, it was +6.05%.

Looking ahead, MCD is expected to report earnings on July 27, 2023, while YUM's earnings report is scheduled for August 02, 2023.

Related Ticker: MCD

MCD's Indicator enters downward trend

The Aroon Indicator for MCD entered a downward trend on July 15, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 130 similar instances where the Aroon Indicator formed such a pattern. In of the 130 cases the stock moved lower. This puts the odds of a downward move at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where MCD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

MCD broke above its upper Bollinger Band on July 17, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on July 16, 2024. You may want to consider a long position or call options on MCD as a result. In of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for MCD just turned positive on July 11, 2024. Looking at past instances where MCD's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .

MCD moved above its 50-day moving average on July 22, 2024 date and that indicates a change from a downward trend to an upward trend.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MCD advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .

Fundamental Analysis (Ratings)

Fear & Greed

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 78%.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: MCD's P/B Ratio (0.000) is slightly lower than the industry average of (3.930). P/E Ratio (22.051) is within average values for comparable stocks, (47.700). Projected Growth (PEG Ratio) (2.269) is also within normal values, averaging (1.864). Dividend Yield (0.025) settles around the average of (0.037) among similar stocks. P/S Ratio (7.353) is also within normal values, averaging (3.206).

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. MCD’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

Notable companies

The most notable companies in this group are McDonald's Corp (NYSE:MCD), Starbucks Corp (NASDAQ:SBUX), Chipotle Mexican Grill (NYSE:CMG), Yum! Brands (NYSE:YUM), Darden Restaurants (NYSE:DRI), Domino's Pizza (NYSE:DPZ), Yum China Holdings (NYSE:YUMC), Shake Shack (NYSE:SHAK), Noodles & Company (NASDAQ:NDLS).

Industry description

The industry includes companies that operate full-service restaurants, fast food restaurants, cafeterias and snack bars. McDonald`s Corporation, Starbucks Corporation, YUM! Brands, Inc. and Restaurant Brands International Inc. are some of the largest U.S. restaurant-owning companies in terms of market capitalization. While restaurant spending could be viewed as discretionary for consumers, some companies in the business have been able to weather economic cycles by establishing strong loyalty among customers over the years. Many of them also have a strong global presence as well.

Market Cap

The average market capitalization across the Restaurants Industry is 6.97B. The market cap for tickers in the group ranges from 6.73K to 187.05B. MCD holds the highest valuation in this group at 187.05B. The lowest valued company is AMHG at 6.73K.

High and low price notable news

The average weekly price growth across all stocks in the Restaurants Industry was -0%. For the same Industry, the average monthly price growth was -2%, and the average quarterly price growth was -4%. CHUY experienced the highest price growth at 55%, while NIHL experienced the biggest fall at -69%.

Volume

The average weekly volume growth across all stocks in the Restaurants Industry was 7%. For the same stocks of the Industry, the average monthly volume growth was -37% and the average quarterly volume growth was 32%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 47
P/E Growth Rating: 64
Price Growth Rating: 55
SMR Rating: 66
Profit Risk Rating: 85
Seasonality Score: 13 (-100 ... +100)
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General Information

an operator of food restaurant chain

Industry Restaurants

Profile
Fundamentals
Details
Industry
Restaurants
Address
110 North Carpenter Street
Phone
+1 630 623-3000
Employees
150000
Web
https://www.investor.mcdonalds.com
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