McDonald's shares got downgraded Piper Jaffray, following the firing of CEO Steve Easterbrook.
Easterbrook has to leave the company because his consensual relationship with an employee violated company policy. "This was a mistake," Easterbrook wrote in an email to employees on Sunday, "Given the values of the company, I agree with the board that it is time for me to move on."
Piper Jaffray analysts lowered their rating on the fast food chain’s shares to neutral from overweight. The price target also was cut to $195 from $224 at Piper Jaffray.
The exit of Easterbrook could create some disruption and pressure on McDonald shares, as indicated by Piper Jaffray’s moves. “Our experience leads us to take a more cautionary view noting the potential lack of momentum and time involved in formalizing a new team,” Piper Jaffray wrote.
However, Piper Jaffray also mentioned that their change in rating does not reflect McDonald's overall ability to “dominate in terms of global market scale, the effectiveness of its leadership team, or the effort behind its franchise network”.
The 50-day moving average for MCD moved above the 200-day moving average on September 19, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
The Moving Average Convergence Divergence (MACD) for MCD just turned positive on October 15, 2024. Looking at past instances where MCD's MACD turned positive, the stock continued to rise in of 50 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 325 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 358 cases where MCD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
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 October 14, 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 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 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 outstanding 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 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 (5.809). P/E Ratio (26.665) is within average values for comparable stocks, (55.202). MCD's Projected Growth (PEG Ratio) (2.698) is slightly higher than the industry average of (1.769). Dividend Yield (0.022) settles around the average of (0.038) among similar stocks. P/S Ratio (8.591) is also within normal values, averaging (3.637).
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 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of food restaurant chain
Industry Restaurants