McDonald’s Corporation (MCD) closed at $129.05 per share, up 1.10% for the yesterday. The stock has been steadily increasing in value since October 2016, and momentum is clearly on its side. For the year to date, MCD is up over 5.5%, after starting at $121.72 per share. While its 1-year performance is modest at 9.88%, traders still have a soft spot for MCD. The consensus opinion among analysts is that MCD is a buy/hold stock, at a rating of 2.5. The scale rates stocks as a strong buy (1.0) or a sell (5). The performance of MCD since Q1 2016 has been positive, and earnings beats have occurred over all 4 quarters. The same cannot be said of the company’s overall revenue and earnings figures. Since 2013, revenues have steadily declined from $28.11 billion to $25.41 billion, while earnings have slipped from $5.59 billion to $4.53 billion. Nonetheless, the 1-year target estimate price for the stock is still higher than the prevailing price, at $131.17 per share. This indicates a positive outlook for the stock, albeit lukewarm. Consider that the 1-year trading range for the stock is $110.33 on the low end and $131.96 on the high-end. MCD is trading near its resistance level for the year, making it a strong hold proposition.

Is McDonald’s a better investment than Burger King?

McDonald’s is always being compared to rival Burger King, in much the same way as Coca-Cola is compared to Pepsi-Cola. The difference between McDonald’s and Burger King is that McDonald’s has retained its standalone identity while Burger King has ventured out into multiple other areas and is now owned by RBI (Restaurant Brands International). Therefore, when you are considering trading one or the other, it’s important to know that Burger King is like the plant with an adventitious root system while McDonald’s is like a plant with a taproot system.

RBI runs scores of doughnuts chains and coffee chains, and it has eyes on the Popeyes franchise. In terms of investment potential, McDonald’s has endured a torrid time in recent years, especially with the health-food culture that has gripped the US, Canada and Europe. Nonetheless, strong comparable store sales increases took place in 2016 (+3.8%) while Q4 2016 growth was up 2.7%. McDonald’s is not missing a beat when it comes to America’s favourite drink – coffee. The fast food franchise is now offering deep discounts on coffee in its US market. It is looking to ramp up the McCafe brand of drinks, and reeling in customers by the truckload. Automated ordering has also increased efficiency and revenues. The upside to automation is that McDonald’s can cut its labour costs and improve its profitability.

Is McDonald’s a good buy option for traders?

McDonald’s is in for a rough ride in the future. The corporation is generally safe because it runs a franchise-style model, but global growth prospects are difficult to ascertain. The problem is public perception. McDonald’s faces the court of public justice where most people regard it as poor-quality food. In spite of its tremendous efforts to promote itself as a healthier form of eating, the Golden Arches is synonymous with fatty foods such as fries and burgers.

It has a place in the market, and a pretty big one at that with its low-cost food offerings. However, as a long-term growth proposition it is debatable how much gas the company has in the tank. RBI casts its net over a vast area, and this inherently lends itself to greater diversity of offerings. However, the management in place at McDonald’s has proven time and again that it will not rest on its laurels while sales are declining. The company is run by assertive leadership that have the wherewithal to run successful campaigns and shape public opinion in its favour.

Traders have certainly not lost their appetite for McDonald’s Stock, and neither have consumers. If the Golden Arches maintains a strong online and media presence with innovative marketing campaigns, there will always be demand for the product and the stock. The resilience of the company is yet another reason binary options traders will be interested in it.