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McDonald's (MCD) Lags Q2 Earnings and Revenue Estimates

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McDonald’s Corp.(MCD - Free Report) is a leading fast-food chain that offers various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. The company aims to continuously build its brand by adapting to changing consumer preference.

McDonald’s posted improved comps in its key regions in the third quarter and it seems that the company’s strategic efforts to boost sales have started yielding results. The company is focusing on product innovation, offering a value menu and rolling out more limited-time offerings which should boost results.

Further, McDonald’s is trimming complicated menus, speeding up service, testing customized burgers and sandwiches to compete with other popular restaurants. The company is also working on a digital strategy and mobile technologies to lower costs further.

Analysts are cautious in the recent months about the company’s earnings. Investors should also note the recent earnings estimate revisions for MCD has been moving downwards over the past 7 days.

Nevertheless, McDonald’s has delivered positive earnings surprises in all the trailing four quarters and has an average positive earnings surprise of 5.70%.

Currently, MCD has a Zacks Rank #3 (Hold) but that could change following McDonald’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: MCD misses on earnings. Our consensus earnings estimate called for EPS of $1.38 per share, and the company reported earnings per share of $1.25 per share.

Revenues:MCD reported revenues of $6.265 billion. This lags our consensus estimate of 6.281 billion.

Key Stats to Note: Global comps for the second quarter grew 3.1% that compared unfavorably to 6.2% growth in the preceding quarter. All the segments posted positive comps. However, foreign currency translation hurt profits.

Share Price: Shares of McDonald’s were down around 2% in the pre-market trading session.

Check back later for our full write up on this MCD earnings report later!

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