McDonald's Trading forecasts and signals

McDonald's (NYSE: MCD) yesterday reported net income of $2.22 billion, or $2.95 per share, for the second fiscal quarter, compared to $483.8 million, or $0.65 per share, a year earlier. Excluding strategic earnings and tax benefits, McDonald's earned $2.37 per share, exceeding the consensus of analysts polled by FactSet at $2.11 per share. Net revenue increased by 57% to $5.89 billion, exceeding expectations of $5.6 billion. Global comparable sales increased by 40.5% compared to 2020 and by 6.9% in two years.Comparable sales in the United States increased by 25.9% in the quarter and by 14.9% in two years. According to the management, this result is due to the high volume of sales of the new chicken sandwich, which was launched in February, as well as the success of the "Star Orders" advertising campaign, which is held with the participation of the k-pop group BTS. The sales growth allows the company to ease the pressure on the financial indicators of such factors as an industry-wide shortage of labor and increased raw material costs. In particular, the launch of a limited edition of "BTS Star Orders", which include McNuggets and special sauces, caused a frenzied stir among the group's huge fan audience and even forced McDonald's to close some outlets in Indonesia.There is also a significant increase in turnover outside the United States. The segment of international markets, including the UK and France, showed an increase in comparable sales by 75.1% compared to 2020 and by 2.6% over two years. The company attributes such strong growth in the region to the easing of restrictions and the gradual opening of catering outlets. In the segment of international license markets, comparable sales roughly correspond to the indicators of the last two years.The volume of digital sales in the six main markets for McDonald's amounted to about $8 billion in the first half of the year. Since the issuer is striving to develop this direction, which was opened during the acute phase of the pandemic, an American loyalty program was launched in early July, which has already been joined by more than 12 million consumers.We positively assess the financial results of McDonald's and believe that the company will soon be able to fully restore the occupancy of restaurants. In addition, during the pandemic, the issuer managed to form a strong digital sales channel, which continues to develop and will be able to increase the stability of the company's operational indicators.Our target price for McDonald's Corporation shares is $274 per ...