McDonalds (MCD) Stock | Produces Another Big Red Flag


McDonald’s Corporation (NYSE: MCD)

Ahh McDonald’s; it seems like every kid’s favorite fast food restaurant doesn’t it? Well, unfortunately McDonald’s is struggling. As more and more consumers start to think about what’s in the food their eating and developing a desire to eat healthier, McDonald’s sales are falling; and falling hard! The long term decline in sales has led to a decline in the company’s stock and pressure from investors to do something to turn things around. Unfortunately however, any move the company has made to increase sales has resulted in more declines! Today, a new red flag has been produced by the company that tells investors to stay away. McDonald’s has announced that they will no longer be providing monthly sales reports; instead, investors will have to deal with quarterly reports. Today, we’ll talk about why McDonald’s has decided to stop providing monthly sales reports, what the company is doing to pick up sales, and what we can expect to see from MCD in the future. So, let’s get right to it…

Why Would McDonald’s Stop Providing Monthly Sales Reports

The answer is simply really; the company doesn’t want to deal with the embarrassment on a monthly basis anymore. The bottom line is that consumers are thinking about health before eating these days, but McDonald’s is known as an unhealthy place to eat. So, sales have been on a long term decline, and seem to be continuing in that direction. As a result, every time monthly sales reports are released, we see declines in the price of MCD shares. So, the only rational reason that the company would stop producing quarterly earnings reports is because they are trying to slow the declines in their stock price.

What MCD Is Doing To Pick Up Sales

In the past, we’ve seen healthier menu options added, but that didn’t seem to work. Now McDonald’s has stated that they’re ready to try something different. While they’re still going to work to improve their menu, they are also working to improve the structure of the company by franchising more of their corporate locations. However, that plan isn’t being picked up well by most investors as there seems to be a show me feeling among investors that would potentially be interested in the stock.

What We Can Expect To See Moving Forward

Unfortunately, I don’t think the outlook for MCD is very positive in either the short term or the long term. The reality is that investors know that consumers seem to be choosing alternatives more and more as time goes by. Although McDonald’s has worked to improve sales, nothing seems to be doing the job. So, I’m expecting to see more declines in sales, revenue, and the stock price from MCD moving forward until they find a way to prove that their efforts to increase sales are working.

What Do You Think?

Where do you think MCD is headed and why? Let us know in the comments below!