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's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for MCD turned positive on November 26, 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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 02, 2024. You may want to consider a long position or call options on MCD as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
MCD moved above its 50-day moving average on December 05, 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 335 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 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 10-day moving average for MCD crossed bearishly below the 50-day moving average on November 04, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 December 05, 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 November 26, 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.
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 82, 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 (10.778). P/E Ratio (26.292) is within average values for comparable stocks, (57.470). MCD's Projected Growth (PEG Ratio) (2.701) is slightly higher than the industry average of (1.858). Dividend Yield (0.023) settles around the average of (0.037) among similar stocks. P/S Ratio (8.361) is also within normal values, averaging (8.704).
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 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.
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Fundamental Analysis Ratings
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General Information
an operator of food restaurant chain
Industry Restaurants