Trade-Ideas LLC identified

McDonald's

(

MCD

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified McDonald's as such a stock due to the following factors:

  • MCD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.2 billion.
  • MCD has traded 88,495 shares today.
  • MCD is trading at a new lifetime high.

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More details on MCD:

McDonald's Corporation operates and franchises McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company's restaurants offer various food products, soft drinks, coffee, and other beverages. The stock currently has a dividend yield of 3%. MCD has a PE ratio of 25. Currently there are 10 analysts that rate McDonald's a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TST Recommends

The average volume for McDonald's has been 6.6 million shares per day over the past 30 days. McDonald's has a market cap of $110.6 billion and is part of the services sector and leisure industry. The stock has a beta of 0.75 and a short float of 1.1% with 1.02 days to cover. Shares are up 1.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates McDonald's as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, growth in earnings per share and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 33.09% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MCD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Hotels, Restaurants & Leisure industry average. The net income increased by 9.9% when compared to the same quarter one year prior, going from $1,097.50 million to $1,206.20 million.
  • MCDONALD'S CORP has improved earnings per share by 15.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MCDONALD'S CORP reported lower earnings of $4.81 versus $4.83 in the prior year. This year, the market expects an improvement in earnings ($5.40 versus $4.81).
  • 39.53% is the gross profit margin for MCDONALD'S CORP which we consider to be strong. Regardless of MCD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MCD's net profit margin of 19.02% compares favorably to the industry average.
  • MCD, with its decline in revenue, underperformed when compared the industry average of 7.2%. Since the same quarter one year prior, revenues slightly dropped by 3.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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