An article was published yesterday by Ken Goldberg of TheStreet.com titled “Charts: McDonald’s Stock is about to Tank.” This title name is shocking enough as it is, but through the use of some number crunching and pointing a few things out on some charts, he predicts that McDonald’s stock is soon going to be dropping significantly, up to almost half the current price.
Sparing you all the details of the article, the main point he suggests is that there is a correction for McDonald’s coming due to its recent gains and a few other factors.
On top of the market signals that the analyst sees, the fall is likely at some point due to their lack in sales and continual slowing of growth.
For the past few quarters, McDonald’s has announced the closing of hundreds of stores throughout the world, and this has stunted growth because as they open other stores as the closing of their stores haven’t allowed much room for improvement.
They haven’t made significant improvements to gain back customers, as millennials move towards other casual fast food restaurants such as Panera and Chipotle.
Their stock price is currently trading at $122 per share, and it could drop to around $60 as some analysts predict.
We’ll see what happens in the future, but it appears as though a correction is coming for McDonald’s in the future that has built up for a while.
