Traders see McDonald’s moving higher after earnings
Traders are betting Wednesday that McDonald’s Corporation (MCD) will trend higher following its upcoming earnings report. The company reports fourth-quarter earnings January 30, with the consensus calling for earnings of $1.89 per share, up from $1.71 during the same period last year. So far today, 6,017 contracts of the February 197.50 call have changed hands, against open interest of 98 contracts.
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About McDonald's Corporation
McDonald's generates revenue through company-owned restaurants, franchise royalties, and licensing pacts. Restaurants offer a uniform value-priced menu with some regional variations. As of June 2019, there were roughly 38,100 locations in 120 countries: 35,500 franchisee/affiliate units and 2,600 company units. After reorganizing the company into segments based on the maturity and competitive position of its different markets, refranchising 4,000 locations, and eliminating $500 million in net annual SG&A expenses the past several years, the company is focused on "velocity growth accelerators" such as an Experience of the Future layout (counter, kiosk, web ordering and table service/curbside delivery), mobile ordering and payments, and delivery alternatives.