McDonald (MCD, $189.87) focuses on ‘tech’ to drive growth
After a hiatus of 20 years, fast food giant McDonalds has returned to deal-making with back to back investments in technology.
In a recent announcement, the company confirmed its acquisition of personalized data start up Dynamic Yield followed by a minority stake in mobile app vendor Plexure, which powers its mobile app in 48 countries outside of the U.S.
Both deals are fairly small relative to McDonald's overall size, with its total market value of $143.73 billion.
But both deals are in-line with the company’s strategy to acquire capabilities through third parties and avoiding costs of building them internally. Also, the company has a poor reputation in terms of its order accuracy and pace of delivery.
This current investment might be considered McDonald’s initiation into the tech world. It already has self-serve kiosks, digital menu boards and other tech-focused upgrades meant to improve convenience for the customer and speed-up how fast their food gets made.
While Dynamic Yield’s personalization technology could also be a part of its self-serve kiosks or its mobile app, its deal with Plexure will give more customer engagement through its mobile app as well restrict Plexure’s exposure to other companies in the food industry like Yum Brands’ (YUM) Taco Bell and Restaurant Brands’ (QSR) Burger King.
MCD in upward trend: price rose above 50-day moving average on February 06, 2025
MCD moved above its 50-day moving average on February 06, 2025 date and that indicates a change from a downward trend to an upward trend. In of 49 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The 10-day moving average for MCD crossed bullishly above the 50-day moving average on February 10, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MCD advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 338 cases where MCD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for MCD moved out of overbought territory on March 10, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 76 cases where MCD's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on March 11, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on MCD as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MCD turned negative on March 12, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 March 07, 2025. 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.
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 83, placing this stock better than average.
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: P/B Ratio (0.000) is normal, around the industry mean (4.672). P/E Ratio (26.286) is within average values for comparable stocks, (54.599). Projected Growth (PEG Ratio) (2.641) is also within normal values, averaging (1.903). Dividend Yield (0.023) settles around the average of (0.046) among similar stocks. P/S Ratio (8.340) is also within normal values, averaging (8.419).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MCD’s price grows at a higher 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 consistent 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.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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.
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an operator of food restaurant chain
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