McDonald's-MCD Trades Above 200 & 50-Day SMAs: Time to Buy or Hold the Stock

Core Viewpoint - McDonald's Corporation (MCD) is experiencing a bullish trend, with stock performance outperforming industry peers and broader market indices, driven by strategic initiatives and global expansion efforts [1][5][20]. Group 1: Stock Performance - MCD's stock closed at $316.07, above its 50-day moving average of$ 305.19 and 200-day moving average of $288.64, indicating a bullish trend [1]. - Over the past three months, MCD shares have gained 13%, significantly outperforming the Zacks Retail - Restaurants industry's 0.6% rise and the S&P 500 index's 9.3% decline [5]. - MCD has outperformed competitors such as Restaurant Brands International (QSR), Wendy's (WEN), and Chipotle (CMG) during the same period [8]. Group 2: Global Expansion Strategy - McDonald's is focused on expanding its global presence, opening 2,116 restaurants in 2024, up from 2,067 in 2023, as part of its Accelerating the Arches strategy [10]. - The company plans to open 2,200 restaurants globally in 2025, contributing over 4% to new unit growth, and aims for a total of 50,000 restaurants by the end of 2027 [11]. Group 3: Menu Innovation and Customer Engagement - McDonald's is enhancing its core menu offerings and customer experience, launching the McValue platform in January 2025 to provide better value and options [12]. - The company is improving delivery services, with delivery sales mix doubling in Australia, Canada, and the U.S., and aims for 30% of system-wide delivery sales to come from its mobile app by 2027 [13]. Group 4: Loyalty Program and Digital Initiatives - Since launching its loyalty program, McDonald's has seen over 170 million 90-day active users, with sales to loyalty members reaching$ 30 billion in 2024 [15]. - The company aims to expand its active user base to 250 million and achieve $45 billion in annual sales by 2027, driven by digital adoption [15]. Group 5: Earnings Outlook - Analysts have increased the Zacks Consensus Estimate for McDonald's 2025 EPS from$ 12.23 to $12.25, indicating a 4.5% year-over-year increase, with further growth anticipated in 2026 [17]. - McDonald's is currently valued at a premium with a forward 12-month P/E ratio of 25.21X, slightly above the industry average of 25.12X, reflecting its strong market position and growth potential [18].