McDonald's Corporation (MCD - Free Report) is scheduled to report second-quarter 2023 results on Jul 27, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 13.9%.
How are Estimates Placed?
The Zacks Consensus Estimate for earnings is pegged at $2.77 per share, indicating growth of 8.7% from $2.55 reported in the year-ago quarter. For revenues, the consensus mark is pegged at $6.22 billion. The metric suggests an improvement of 8.6% from the year-ago quarter’s figure.
Let's delve deeper.
Factors at Play
McDonald's second-quarter results are likely to gain from strong comps growth, menu innovation, expansion efforts, increase in average check growth and menu price. Robust digitalization is an added positive. Our model predicts the company’s U.S and international comps to increase 7% and 7.8% year over year, respectively.
McDonald’s is consistently trying to improve its performance in Australia, Canada, France, Germany and the U.K. MCD intends to drive comps growth in these markets by introducing value meals, customizing menu to local tastes, reimaging of restaurants, efficient marketing and promotions, improved service and increased convenience via delivery and digitalized presence.
We expect the U.S. segment’s total revenues in second-quarter 2023 to be up nearly 8.8% year over year to $2,575.6 million. Our model estimates total international operated markets revenues to decline 2.8% year over year to $2,643.9 million.
However, margins in second-quarter might have suffered due to continued pressure from elevated costs for commodities and wages. Management expects to witness food and paper inflation in 2023 in the mid-to-high single digits.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for McDonald's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McDonald's has an Earnings ESP of -1.05% and a Zacks Rank #2.
Stocks Poised to Beat Estimates
Here are some stocks from the Zacks Retail - Restaurants industry that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) has an Earnings ESP of +1.03% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Dave & Buster's have gained 33.2% in the past year. PLAY’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.8%.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.70% and carries a Zacks Rank #2.
Shares of Chipotle have risen 58% in the past year. CMG’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 93%.
Yum China Holdings, Inc. (YUMC - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #3.
Shares of Yum China have increased 23.9% in the past year. YUMC’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 4.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
McDonald's Corporation (MCD - Free Report) is scheduled to report second-quarter 2023 results on Jul 27, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 13.9%.
How are Estimates Placed?
The Zacks Consensus Estimate for earnings is pegged at $2.77 per share, indicating growth of 8.7% from $2.55 reported in the year-ago quarter. For revenues, the consensus mark is pegged at $6.22 billion. The metric suggests an improvement of 8.6% from the year-ago quarter’s figure.
Let's delve deeper.
Factors at Play
McDonald's second-quarter results are likely to gain from strong comps growth, menu innovation, expansion efforts, increase in average check growth and menu price. Robust digitalization is an added positive. Our model predicts the company’s U.S and international comps to increase 7% and 7.8% year over year, respectively.
McDonald’s is consistently trying to improve its performance in Australia, Canada, France, Germany and the U.K. MCD intends to drive comps growth in these markets by introducing value meals, customizing menu to local tastes, reimaging of restaurants, efficient marketing and promotions, improved service and increased convenience via delivery and digitalized presence.
We expect the U.S. segment’s total revenues in second-quarter 2023 to be up nearly 8.8% year over year to $2,575.6 million. Our model estimates total international operated markets revenues to decline 2.8% year over year to $2,643.9 million.
However, margins in second-quarter might have suffered due to continued pressure from elevated costs for commodities and wages. Management expects to witness food and paper inflation in 2023 in the mid-to-high single digits.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for McDonald's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McDonald's has an Earnings ESP of -1.05% and a Zacks Rank #2.
Stocks Poised to Beat Estimates
Here are some stocks from the Zacks Retail - Restaurants industry that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) has an Earnings ESP of +1.03% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Dave & Buster's have gained 33.2% in the past year. PLAY’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.8%.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.70% and carries a Zacks Rank #2.
Shares of Chipotle have risen 58% in the past year. CMG’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 93%.
Yum China Holdings, Inc. (YUMC - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #3.
Shares of Yum China have increased 23.9% in the past year. YUMC’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 4.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Get the latest research report on MCD - FREE
Get the latest research report on CMG - FREE
Get the latest research report on PLAY - FREE
Get the latest research report on YUMC - FREE