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What you should know about McDonald's
As McDonald's reports its third-quarter results, Swiss-based trader Serge Berger, also known as the “Steady Trader”, offers his advice on how to trade this stock. On the one hand, McDonalds has a “big following” and “is one of the most recognized brands”, but on the other, its shares have dropped over the past few months.
His main tip is to wait for the earnings to pass before making a trade, so he would look at the stock on Tuesday - as results are out on Monday.
Also worth noting, according to Serge, is that McDonalds is not a so called “alpha stock” in the sense that it doesn’t usually make “gigantic leaps” on earnings.
That said, he says this can of course happen. He uses Yum! Brands, owner of Pizza Hut and Taco Bell, as an example, which saw its shares drop after it reported its earnings.
This, says Serge, shows that a food retailer can see a big move.
In terms of levels, Serge says that on the downside McDonalds has “really good support around USD 93 and that on the upside “a move above USD 98 would be a nice breakout”.
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01:32 minutes
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