The increasing preference of consumers for grocery purchasing over dining out causes a bearish factor for companies like McDonald's. In response to this prevailing pattern, the fast-food company employs many tactics to preserve its clientele and stimulate revenue from its emblematic products.
Consumer Behavior Could Affect MCD
At the recent UBS Global Consumer and Retail Conference, McDonald's acknowledged that shifting consumer behavior presents business challenges. Ian Borden, chief financial officer, noted a discernible trend in which patrons favor home-cooked meals over dining out.
This transition is apparent in recent data, which indicates that food prices at home have increased by 1% in the past year, while outside purchases for home increased by a substantial 4.5%. Increasing interest rates and diminished savings may ultimately result in a decrease in customer footfall this year.
McDonald's Action Client's Demand
McDonald's has acknowledged the necessity of rejuvenating its product portfolio to stimulate interest and maintain clientele. To increase customer satisfaction, the company intends to introduce larger burger options, broaden its chicken product line, and enhance its coffee selection.
While open to suggestions for enhancement, Borden emphasized optimizing McDonald's coffee manufacturing processes. McDonald's endeavors to reestablish market momentum and elevate the overall customer experience by emphasizing flavor and excellence.
McDonald's Stock Technical Analysis
In the daily chart of MCD stock price, the ongoing price action suggests a corrective momentum, where multiple violations are seen with the dynamic 20-day EMA.
In the higher timeframe, the weekly price suggests a buy-side liquidity sweep as the recent price consolidates after breaking above the 299.42 swing high. Moreover, the most recent candle trades bearish after an inside bar formation, which signals a possible bearish trend for the coming days.
In the daily chart of McDonald's stock price, the 100-day Simple Moving Average is the immediate support, which is acting as a major barrier above the 281.59 static level.
Based on the current market outlook of MCD stock, the ongoing selling pressure might extend after having a bearish candle below the 281.00 level. A successful daily candle below this line could lower the price towards the 260.00 psychological level.
On the bullish side, an immediate recovery is possible, but it needs a daily candle above the 296.41 resistance level. In that case, the upward pressure could open with an opportunity to test the 315.00 level.
