McDonald's (MCD, $185.72) to buy Israeli digital start-up
Gunning for its biggest deal in nearly two decades, McDonald’s on Monday announced its plan to acquire Israeli personalization and decision logic technology company, Dynamic Yield.
The acquisition is in line with the company’s recent push towards technology across its different U.S. locations, as the company tries to come to terms with the digital revolution.
According to the company, McDonald’s is one of the pioneers within its industry space to integrate decision technology into the customer point of sale at a brick and mortar location. The acquisition is likely to help the company by changing digital drive-thru menus based on different factors like weather conditions and the current restaurant traffic.
Although the financial details of the deal are yet to be confirmed by either company, according to sources close to the deal McDonald’s is likely to pay more than $300 million - its biggest acquisition in two decades.
In 2019, according to the company, it is likely spend nearly $1 billion to upgrade and renovate about 2,000 stores across different U.S. locations.
MCD's RSI Indicator climbs out of oversold territory
The RSI Oscillator for MCD moved out of oversold territory on April 17, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 22 similar instances when the indicator left oversold territory. In of the 22 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 18, 2024. You may want to consider a long position or call options on MCD as a result. In of 97 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 April 18, 2024. Looking at past instances where MCD's MACD turned positive, the stock continued to rise in of 52 cases 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 334 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 April 23, 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.
The Aroon Indicator for MCD entered a downward trend on April 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
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 seriously 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 (4.103). P/E Ratio (23.841) is within average values for comparable stocks, (55.594). Projected Growth (PEG Ratio) (1.988) is also within normal values, averaging (2.024). Dividend Yield (0.023) settles around the average of (0.035) among similar stocks. P/S Ratio (7.918) is also within normal values, averaging (3.312).
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 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 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.
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an operator of food restaurant chain
Industry Restaurants