McDonald's (MCD, $230.46) to shutter hundreds of outlets in Walmart
McDonald's is planning to shutter hundreds of its outlets in Walmart stores by the end of the summer.
Walmart confirmed Friday that the fast-food restaurant chain will have around 150 locations after the closures. That’s down from 500 at the start of the year and from an overall peak of about 1,000.
down from 500 at the start of the year and from an overall peak of about 1,000, The Wall Street Journal reported.
A former McDonald's executive told Dow Jones that stand-alone McDonald's locations with drive-throughs were far more profitable, even before the pandemic.
According to the executive, a third of the sales from Walmart-sited McDonald’s restaurants came from Walmart employees, while many patrons visited them only to load “up on refills and condiments, diluting margins.”
Walmart is now considering other restaurant options “that don't rely solely on store traffic,” others familiar with the situation told Dow Jones.
MCD in -0.30% downward trend, falling for three consecutive days on May 25, 2023
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where MCD declined for three days, in of 250 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on MCD as a result. In of 100 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 May 03, 2023. 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 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
MCD moved below its 50-day moving average on May 24, 2023 date and that indicates a change from an upward trend to a downward trend.
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for MCD's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MCD advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
MCD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 383 cases where MCD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 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 86, placing this stock better than average.
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 (8.561). P/E Ratio (30.675) is within average values for comparable stocks, (162.858). MCD's Projected Growth (PEG Ratio) (3.502) is slightly higher than the industry average of (2.142). Dividend Yield (0.020) settles around the average of (0.032) among similar stocks. P/S Ratio (8.985) is also within normal values, averaging (50.687).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 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.
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Industry description
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High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an operator of food restaurant chain
Industry Restaurants
MCD and
Correlation & Price change
A.I.dvisor indicates that over the last year, MCD has been loosely correlated with YUM. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if MCD jumps, then YUM could also see price increases.
