McDonald's to continue run higher

31 ביולי 2017

Management
CEO is turning to tech to turn things around and seems very switched on. Has worked as a manager in McDonald's and has been CEO of PizzaExpress and then CEO of Wagamama.

Products

• Moving into healthier but with fast food speed
  
• Shorter queues
  
• Mobile ordering coming soon
  
• Home delivery is a wildcard that may improve sales
  
  
• Burgers are still not the best
  
• Still a stigma of dirty food (McDonald's isn't cool)
  
• A lot of fast food competition
  

Financial Health

• Gross margins improving
  
• Revenue decreasing
  

Geographical Exposure
McDonald's operates worldwide, but is most popular in western countries.

Technical Analysis

• A support zone ranging from 150.30 to 154.81. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
  
• A resistance zone ranging from 155.15 to 156.28. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
  
• Resistance @159.08 from a horizontal line in the daily time frame.
  

Trade

• An entry @156.29. This is a Buy Stop order right above the resistance zone.
  
• An exit @151.76. This is a Stop Loss order right below the 10 day low.
  
• The worst case loss on the trade is limited to 4.53 points, which is 2.90%.
  
• When investing 25.00% of your capital in this trade, your total portfolio risk will be 0.72%.