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McDonald’s shares touch a fresh record high on Tuesday, second-quarter sales top market expectations supported by new offers

Global sales at McDonald’s established restaurants surged the most in five years during the latest quarter, supported by higher client traffic worldwide as well as new special offers in the United States such as fresh beef Quarter Pounders, signature crafted sandwiches, $1 soft drinks of all sizes and $2 McCafe beverages.

McDonald’s shares closed higher for the second time in the past seven trading sessions on Tuesday. It has also been the steepest daily surge since April 25th. The stock went up 4.75% ($7.22) to $159.07, after touching an intraday high at $159.94 and also a fresh all-time high. In the week ended on July 23rd the shares of the restaurant chain lost 0.88% of their market value compared to a week ago, which marked a second consecutive period of decline. The stock has neutralized earlier losses and is now up 3.86% so far during the current month, following a 1.50% surge in June. The latter has been an eighth straight month of gains. For the entire past year, the shares of the NYSE-listed retailer gained 3.03%.

McDonald’s same-store sales worldwide were reported to have risen 6.6% during the second quarter as customer traffic intensified the most in more than five years. In comparison, analysts on average had expected a 4% increase in same-store sales.

According to research firm Consensus Metrix, sales at restaurants in the United States, which are open at least 13 months, surged 3.9% during the latest quarter, while outstripping the median analyst estimate (a 3.2% growth) as well. At the same time, sales in China went up 7%.

McDonald’s total revenue was reported to have shrunk by 3.4% to $6.05 billion during the second quarter, or at a lesser rate than what had been projected by analysts ($5.96 billion in revenue).

Meanwhile, the companys net earnings went up to $1.40 billion ($1.70 per share) in Q2 from $1.09 billion ($1.25 per share) during the same three-month period a year ago.

McDonald’s earnings per share, excluding special items, were reported at $1.73 during the latest quarter, while exceeding the median forecast by analysts ($1.62 per share).

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding McDonald’s Corporation’s stock price, have a median target of $164.00, with a high estimate of $180.00 and a low estimate of $140.00. The median estimate is a 3.10% surge compared to the closing price of $159.07 on July 25th.

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 – $159.39
R2 – $159.70
R3 (Range Resistance – Sell) – $160.02
R4 (Long Breakout) – $160.96
R5 (Breakout Target 1) – $162.07
R6 (Breakout Target 2) – $162.57

S1 – $158.75
S2 – $158.44
S3 (Range Support – Buy) – $158.12
S4 (Short Breakout) – $157.18
S5 (Breakout Target 1) – $156.07
S6 (Breakout Target 2) – $155.57

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

Central Pivot Point – $154.22
R1 – $155.14
R2 – $156.37
R3 – $157.29
R4 – $158.22

S1 – $152.99
S2 – $152.07
S3 – $150.84
S4 – $149.62

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