McDonald’s Corp (NYSE: MCD), priced at $210.90, at the stock exchange, is meeting consistent highs and lows, which shows that the company stock is volatile.
In the last six months though, McDonald’s Corp stock (NYSE: MCD), dropped steeply and stood in red for the most part, which shows that the company’s stock was hit drastically by the corona pandemic. However, after the end of the last 6 months, McDonald’s stock managed to increase back to its original value, which shows McDonald’s is making efforts to keep up.
McDonald’s Corp (NYSE: MCD) Picture at the Stock Market
It is obvious that McDonald’s Corp (NYSE:MCD) tried to keep pace with the market through mid of August, and was barely successful, with its shares rising by about 6%, compared to a 5% increase in the S&P500. While this raise is noticeable if we compare food giants such as Restaurants Brands International or Yum Brands, it is lower than Domino’s or Chipotle, which rose by over 30% in 2020 so far. McDonald’s shares steeped deeply in June which made a lot of investors frown. What has added to McDonald’s demand is its breakfast supply. However, McDonald's needs to sparse its distribution to have equal dispersion and growth.
McDonalds has been hit by the corona pandemic but it is now trying to succumb through, keep up, rise up and then follow suit. However, it will take time for the company to recover or make its mark in the industry.
What Is Ahead For McDonald’s Corp
For investors looking to invest in McDonald’s Corp, the current CEO of the company is trying to bring a major overhaul in the company. According to reports, Chris Kempczinski, the CEO of the company, has bigger plans for McDonald's. Not only is there a big marketing plan and push in the works, McDonald’s is also managing to understand, realize and plan its widespread production to ensure solid and valid distribution. Therefore, all is not lost for the company.
Where Has McDonald’s Generated Its Revenue From
McDonald’s generates its revenue from company-owned restaurants, licensing pacts and franchise royalties. McDonald’s at the moment is competing with relatively unknown companies and groups, which reflects adversely on its value and worth. Furthermore, the company is faring less than bigger giants, an area which it once dominated.
McDonald’s had a rough Q2 but so did other companies. Rather than withdrawing, investors should be looking for its Q3 sales as the company’s CEO has a lot of plans in the work. McDonald’s Q2 sales were worse than global in recent memory, as its drive-through and deliveries were unable to match up for consumer caution or demand because of the pandemic shut down.
While Mcdonald’s Corp did make many tweaks, those in its breakfast routines, its sales still declined or were in declining. The company did try to cope up but Q2 sales disappointed. However, all is not lost for McDonald’s for it is operational since decades. Investors must should on to its stock till Q3 to make decisions regarding buying or selling its stock. McDonald’s Corp will hopefully perform better in Q3.
McDonald’s stock had a previous close of $211.57. It has a market cap of 154.71B and its trading volume is 893,562. McDonald’s is not yet to lose or gain as well. Investors should be patient till Q3 to assess its stock better to make wise investment decisions.
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