McDonald's had a rough year throughout 2015. However, the rough times seem to be over for the stock. Recently, McDonald's has started to soar in the market. Now, the question is… will gains continue? Today, we'll talk about why McDonald's had such a rough time, why the stock is starting to see gains, whether or not gains are likely to continue, and what binary options traders can do to take advantage of the trends.
Why McDonald's Had Such A Rough Time
McDonald's struggled throughout the year 2015 for a very good reason. The reality is that consumers are starting to become more and more interested in health. Unfortunately for McDonald's, the brand has been associated with unhealthy food for quite some time. As a result, we started to see dramatic declines in sales at McDonald's stores. As a result, revenue started to decline and investors started to get worried. Soon, the stock tanked!
Why We're Starting To See Gains
The reality is that things are picking up for McDonald's over the course of the past year, the company has worked hard to produce higher quality food. They have come up with alternatives to their french fries, artisan sandwiches, and salads that have all been selling very well. As a result, McDonald's recently reported incredibly positive earnings. In the fourth quarter, we saw a year over year increase in earnings per share from $1.13 to $1.31. When it comes to revenue, the company also produced gains, climbing from $6.34 billion to $6.57 billion year over year. These figures blew away Wall Street expectations and led to strong gains in the value of the stock. Another factor to keep in mind here is that same store sales grew by 5%, well above analyst expectations of 3.2%. All in all, earnings prove that the company's work with regard to increasing sales is working, and working well!
What We Can Expect To See Moving Forward
Moving forward, I'm expecting to see solid gains out of McDonald's. The reality is that this is a company that has proven its ability to come back from hard times, time and time again. This time, they were able to assess the problem and create a solution that would increase revenue once again. Sales are climbing in the United States and internationally. With the company's recent movements and their ability to continue jumping over the hurdles, there's no reason to expect to see declines in the value of the stock any time soon. All in all, things are looking great for McDonald's moving forward!
How Binary Options Traders Can Trade The Trends
As binary options traders, it's our job to predict what's going to happen with regard to a financial asset in the future. McDonald's has made this job incredibly easy for us. The reality is that the movements the company has made to improve sales are working. With the year long declines we've seen on the stock, it is trading at an overwhelmingly low price. As a result, we can expect for investor excitement to drive the price of McDonald's higher. To take advantage of the trends, binary options traders should watch McDonald's for strong call option opportunities. Purchasing calls will allow the trader to ride the trends up to the top! Keep informed and check out the financial news for binary options traders.
What Do You Think?
Where do you think McDonald's is headed moving forward? Let us know your opinion in the comments below!
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