McDonald’s shares close higher on Monday, 169 restaurants in northern and eastern India to be closed

According to a statement by McDonald’s Corporation (MCD) on August 21st, all of the companys 169 restaurants in northern and eastern India are to be closed, as a legal dispute with domestic partner Connaught Plaza Restaurants Pvt Ltd intensified.

McDonald’s shares closed higher for the third time in the past six trading sessions on Monday. The stock edged up 0.38% ($0.60) to $158.36, with the intraday high and the intraday low being at $158.64 and $157.54 respectively. In the week ended on August 20th the shares of the restaurant chain added 0.29% to their market value compared to a week ago, which marked a second consecutive period of gains. The stock has extended its advance to 2.08% so far during the current month, following a 1.29% surge in July. The latter has been a ninth straight month of gains. For the entire past year, the shares of the NYSE-listed retailer gained 3.03%. The stock has appreciated 30.10% so far during 2017.

The fast food chains decision came, as Connaught Plaza had allegedly infringed the terms of the franchise agreements between the two entities. As a result of the prolonged dispute, over 40 McDonald’s restaurants were temporarily closed at the end of June.

According to the restaurant chain, all of the 169 outlets in the area are to discontinue using McDonalds name, trademarks, designs, branding as well as recipes within a 15-day period of the termination notice. At the same time, the US company said it would remain committed to northern and eastern India, as it had already initiated a search of new partnership opportunities.

According to Connaught Plazas board member, Madhurima Bakshi, 6 500 people are employed directly and many more indirectly at McDonald’s outlets across the above mentioned regions of the country.

In a response, McDonald’s Corp said it would do whatever is necessary so that the impact of its decision on employees, suppliers and landlords in the region is mitigated.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding McDonald’s Corporation’s stock price, have a median target of $173.00, with a high estimate of $185.00 and a low estimate of $150.00. The median estimate is a 9.24% surge compared to the closing price of $158.36 on August 21st.

The same media also reported that 18 out of 32 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 – $158.46
R2 – $158.56
R3 (Range Resistance – Sell) – $158.66
R4 (Long Breakout) – $158.97
R5 (Breakout Target 1) – $159.32
R6 (Breakout Target 2) – $159.47

S1 – $158.26
S2 – $158.16
S3 (Range Support – Buy) – $158.06
S4 (Short Breakout) – $157.76
S5 (Breakout Target 1) – $157.40
S6 (Breakout Target 2) – $157.25

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

Central Pivot Point – $157.92
R1 – $159.37
R2 – $160.99
R3 – $162.44
R4 – $163.90

S1 – $156.30
S2 – $154.85
S3 – $153.23
S4 – $151.62