McDonald’s shares rebound on Tuesday, company to take $80-$90 million in charges as it restructures US operations

According to a statement on McDonald’s Corps investor relations page on Monday, the company expects to take charges estimated at $80-$90 million during the second quarter as a result of its restructuring program in the United States that also involves layoffs. However, it did not disclose how many employees would be affected by layoffs.

McDonald’s shares closed higher for the fourth time in the past nine trading sessions in New York on Tuesday. The stock edged up 0.14% ($0.24) to $166.73, after touching an intraday low at $166.25, or a price level not seen since June 7th ($163.69).

Shares of McDonald’s Corporation have retreated 3.13% so far in 2018 compared with a 4.24% gain for the underlying index, S&P 500 (SPX).

In 2017, McDonald’s Corp’s stock surged 41.41%, thus, it outperformed the S&P 500, which registered a 19.42% return.

Charges are expected to be related mostly to severance costs and field office closures.

McDonald’s also said that its regional structure would be eliminated, while its field organization – streamlined, so that resources could be used for technology and field consulting.

The company expects the transition into the new structure to be finalized in Q3 2018.

Last week, by citing a company email sent to all McDonald’s employees, suppliers and franchisees in the United States, the Wall Street Journal reported that the restaurant chain was considering another round of layoffs in an attempt to further flatten out its management structure.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding McDonald’s Corporation’s stock price, have a median target of $190.00, with a high estimate of $204.00 and a low estimate of $168.00. The median estimate is a 13.96% surge compared to the closing price of $166.73 on June 12th.

The same media also reported that 16 out of 29 surveyed investment analysts had rated McDonald’s Corporation’s stock as “Buy”, while 10 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the McDonald’s stock are presented as follows:

R1 – $166.82
R2 – $166.91
R3 (Range Resistance – Sell) – $167.00
R4 (Long Breakout) – $167.27
R5 (Breakout Target 1) – $167.59
R6 (Breakout Target 2) – $167.72

S1 – $166.64
S2 – $166.55
S3 (Range Support – Buy) – $166.46
S4 (Short Breakout) – $166.19
S5 (Breakout Target 1) – $165.87
S6 (Breakout Target 2) – $165.74

By using the traditional method of calculation, the weekly levels of importance for McDonald’s Corporation (MCD) are presented as follows:

Central Pivot Point – $166.48
R1 – $173.99
R2 – $179.06
R3 – $186.57
R4 – $194.07

S1 – $161.41
S2 – $153.90
S3 – $148.83
S4 – $143.75