Back in August, Douglas McIntyre posted this piece about potential price increases at the chain. Management stated that there has to be a balance between growth and pricing, and that it wouldn't initiate any pricing strategies that would impact traffic levels. It's good that the powers that be are cautious when it comes to this issue, but at the same time, if price increases can be passed off, then they could serve as a useful tool for ensuring that the bottom line remains on a healthy trend. Success in this area can be tricky, as the quality of the margins hangs in the balance. The brand power of McDonald's has to be worth something, though, so experimentation is requisite in this case; after all, those tasty fries are worth some kind of premium, aren't they?

I'll be interested in the little details, of course, such as how many shares have been repurchased during the quarter (last quarter, McDonald's bought back 13.3 million shares, according to this press release) and what menu items have been driving business. And then I'd like to find out what management's outlook is for commodity costs and any unique promotions they may have in store to keep the traffic coming to the golden arches.

Now, am I interested in trading McDonald's ahead of the earnings? As a rule, I've been avoiding earnings trades. They're just too risky in this climate. However, I think McDonald's might make for an interesting trade if it pulled back substantially before the report. You must, of course, perform your own due diligence and decide for yourself if the stock is a buy ahead of the earnings. All I'm saying is I think McDonald's might issue some good numbers. Still, we won't know until Wednesday, so traders -- be careful!

Disclosure: I don't own any company mentioned; positions can change at any time.