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Today, we are opening a new bullish trade on McDonald's (NYSE: MCD ) . MCD took quite a hit in early March when an analyst at RBC cut expectations for the company's same-store-sales numbers. However, this dip has since sparked a rally - especially because it looks like same-store-sales numbers are starting to pick up, according to a new report from Telsey Advisory Group.
MCD has been remodeling many of its locations in the United States and has seen a notable uptick in business at these updated locations. The company plans to continue remodeling outdated locations in 2018, with $2.4 billion in cap-ex spending, which should help boost sales even further.
MCD broke above down-trending support last Thursday, completing an inverted "head-and-shoulders" bullish reversal pattern, and we expect the stock to continue climbing up toward $170 in the run up to the company's earnings announcement on April 30, before market open.
'Buy to open' the MCD May 170 Call (MCD180518C00170000) for a maximum price of $2.45.
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