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These Traders Would Stay Away From McDonald's For Now


On CNBC's "Trading Nation," Mark Newton of Newton Advisors and Quint Tatro of Joule Financial spoke about McDonald's Corp (NYSE: MCD).

Newton said the Relative Strength Index in McDonald's is near 80. He explained that in the last 25 years, this has happened only five times and in three of those five times the stock traded sideways to lower. He wouldn't buy the stock at its current price level.

See Also: MKM On McDonald's: The Future Is Now

Tatro sees McDonald's as a real estate company, masking as a burger chain. Over the last couple of years, the company started to act like that, levering up the balance sheet. The stock is trading 8 times sales, negative book value and traditionally this is a stock where it doesn't pay to chase at the current price level fundamentally. The dividend is not great and Tatro wouldn't be a buyer.

McDonald's stock traded around $218.31 per share at time of publication.

Posted-In: CNBC Mark Newton Quint Tatro Trading NationShort Ideas Technicals Media Trading Ideas


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