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Last Thursday, retailers, for the most part, reported better than expected May comparable sales and the Morgan Stanley Retail Index (MVR) was up 3.4%. The next day, however, the MVR, reversed these gains entirely and declined further, closing down 6.7%.

Right now, MCD is trading up 4.0% in response to its better than expected May same-store sales results. Once investors read beyond the headlines and realize that U.S. margins are declining as a result of increased discounting (please refer to my earlier post MCD's Top-Line Momentum Continues...Will Margins Follow?), MCD shares could follow this same downward trend.