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McDonald’s (MCD) is the world’s largest fast food restaurant chain, serving over 69 million customers daily in over 100 countries in more than 40,000 outlets as of 2021. McDonald’s is best known for its hamburgers, cheeseburgers, and french fries, although their menu also includes other items like chicken, fish, fruit, and salads.

Since the largest fast food franchise in the world was created, it has been a money-making machine. The share price has always maintained a bullish attitude, facing catastrophic scenarios head on, such as the last financial and real estate crisis of 2008.

Only in certain specific periods of history can we see that the value dropped more than 40% of its price. In 1975, the oil crisis; 1987, Black Monday; in 2000, with the dotcom crisis, and now with the COVID-19 pandemic. If you are a long-term investor, this stock should definitely be in your portfolio.

McDonald’s Quarterly Chart - April 2023

In the chart above, can see MCD's price action on a quarterly basis. The first important cycle was completed before the dotcom crisis, ending wave (I) at $49.56. The recessive period ended at the beginning of 2003, lowering the price to $12.12 and ending wave (II).

Then, it had 10 years of growth, reaching the price of $103.70 in 2013 with more than 700% yield. This was wave (III). In this year it entered a period of lethargy and sideways movement, ending wave (IV) at $87.50.

McDonald’s Weekly Chart - April 2023

In the weekly chart, we can clearly see the retracement of the entire wave at point ((I)). The correction took on a flat Elliott Wave structure. Wave (a) ended at $187.55. The corrective bounce reached $218.38, completing wave (b). The drop in the stock's pattern occurred at the beginning of the COVID-19 pandemic.

Wave (c) ended at $124.23 and so did wave ((II)) in a pullback, with losses above 43% in March 2020. Since this date, MCD has maintained a bullish stock price, almost reaching $300 dollars per share. As long as the price remains above $217.68, and more importantly above $124.23, the MCD share price should continue the long-term rally within wave ((III)).

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