McDonald’s shares fall the most in one month on Thursday, global same-store sales offset slowdown in the US, quarterly profit beats

McDonald’s Corporations (MCD) second-quarter revenue and earnings, reported on Thursday, topped Wall Street estimates as stronger sales internationally offset a slowdown in the United States.

McDonald’s shares closed lower for the fourth time in the past nine trading sessions in New York on Thursday. It has also been the steepest daily loss since June 27th. The stock went down 1.73% ($2.75) to $156.14, after touching an intraday low at $154.75, or a price level not seen since March 8th ($152.65).

Shares of McDonald’s Corporation have retreated 9.28% so far in 2018 compared with a 6.13% gain for the underlying index, S&P 500 (SPX).

In 2017, McDonald’s Corp’s stock surged 41.41%, thus, it outperformed the S&P 500, which registered a 19.42% return.

Total revenue shrank 12% year-on-year to $5.35 billion during the second quarter ended on June 30th. In comparison, the median analyst estimate had pointed to a larger revenue drop – to $5.32 billion.

Sales at restaurants in the United States, which are open for at least 13 months, were reported to have increased 2.6% during the past quarter from a year ago, while falling short of analysts median forecast pointing to a 2.96% growth.

On the other hand, comparable-store sales in McDonald’s Corps international key markets such as Canada, Australia, the United Kingdom, Germany and France went up 4.9% during the second quarter, while outstripping market expectations of a 3.94% growth.

As a result, McDonald’s Corps global sales at restaurants, which are open for at least 13 months, surged 4% during the past quarter, while beating the median forecast of 3.60% growth.

Meanwhile, net income attributable to shareholders went up to $1.50 billion ($1.90 per share) during the quarter ended on June 30th, from $1.40 billion ($1.70 per share) during the same period a year ago.

Earnings per share, excluding special items, were reported at $1.99 during the second quarter, which topped the median estimate by analysts of $1.92 per share.

According to CNN Money, the 27 analysts, offering 12-month forecasts regarding McDonald’s Corporation’s stock price, have a median target of $190.00, with a high estimate of $204.00 and a low estimate of $168.00. The median estimate represents a 21.69% upside compared to the closing price of $156.14 on July 26th.

The same media also reported that 17 out of 31 surveyed investment analysts had rated McDonald’s Corporation’s stock as “Buy”, while 11 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the McDonald’s stock are presented as follows:

R1 – $156.52
R2 – $156.90
R3 (Range Resistance – Sell) – $157.28
R4 (Long Breakout) – $158.41
R5 (Breakout Target 1) – $159.74
R6 (Breakout Target 2) – $160.31

S1 – $155.76
S2 – $155.38
S3 (Range Support – Buy) – $155.00
S4 (Short Breakout) – $153.87
S5 (Breakout Target 1) – $152.54
S6 (Breakout Target 2) – $151.97

By using the traditional method of calculation, the weekly levels of importance for McDonald’s Corporation (MCD) are presented as follows:

Central Pivot Point – $158.08
R1 – $159.89
R2 – $161.80
R3 – $163.61
R4 – $165.41

S1 – $156.17
S2 – $154.36
S3 – $152.45
S4 – $150.53