McDonald’s Corporation (NYSE:MCD) had announced earlier this month to pare down its menu in order to simplify its offerings amid flagging US sales. The company took the decision as it wants to concentrate on products that it believes makes the fast food giant better than others available in the market. Many analysts believe that its also a way for the company to cut costs in view of flagging sales in the US markets. It is imperative to state that the company is one of the largest fast food giants in the world. The company also is planning to pare down its offerings in international markets and sticks to what sells. It was brought to the notice of the company that consumers were getting overwhelmed by the huge number of additions to the menu and were unable to distinguish the items available which was being seen as a huge negative. Analysts on the street remain bullish about the future prospects for the company and have a consensus hold estimate on the stock. The company has quashed all rumors about it taking off the “Big Mac” off its menu, calling it a social media hoax.
When looking at the daily charts for McDonald’s Corporation (NYSE:MCD), the stock has seen volatile price movements over the past few weeks. The stock has been forming lower lows and lower highs which is considered to be a bearish sign. The momentum indicator for the stock has given a fresh buy signal which is indicative of the shift of momentum towards the buy side. The relative strength index has also given a buy signal which is a bullish sign for the near term.