McDonald's (MCD - Free Report) closed at $292.54 in the latest trading session, marking a +0.55% move from the prior day. This change outpaced the S&P 500's 1.02% loss on the day. Elsewhere, the Dow saw a downswing of 1.04%, while the tech-heavy Nasdaq depreciated by 1.65%.
Coming into today, shares of the world's biggest hamburger chain had gained 1.74% in the past month. In that same time, the Retail-Wholesale sector gained 3.96%, while the S&P 500 gained 3.64%.
The investment community will be paying close attention to the earnings performance of McDonald's in its upcoming release. The company is predicted to post an EPS of $2.72, indicating a 3.42% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.18 billion, indicating a 4.86% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.38 per share and a revenue of $26.96 billion, indicating changes of +3.69% and +5.75%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for McDonald's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.82% downward. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, McDonald's currently has a Forward P/E ratio of 23.51. This valuation marks a premium compared to its industry's average Forward P/E of 21.18.
We can also see that MCD currently has a PEG ratio of 3.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Restaurants industry stood at 1.89 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
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McDonald's (MCD - Free Report) closed at $292.54 in the latest trading session, marking a +0.55% move from the prior day. This change outpaced the S&P 500's 1.02% loss on the day. Elsewhere, the Dow saw a downswing of 1.04%, while the tech-heavy Nasdaq depreciated by 1.65%.
Coming into today, shares of the world's biggest hamburger chain had gained 1.74% in the past month. In that same time, the Retail-Wholesale sector gained 3.96%, while the S&P 500 gained 3.64%.
The investment community will be paying close attention to the earnings performance of McDonald's in its upcoming release. The company is predicted to post an EPS of $2.72, indicating a 3.42% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.18 billion, indicating a 4.86% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.38 per share and a revenue of $26.96 billion, indicating changes of +3.69% and +5.75%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for McDonald's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.82% downward. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, McDonald's currently has a Forward P/E ratio of 23.51. This valuation marks a premium compared to its industry's average Forward P/E of 21.18.
We can also see that MCD currently has a PEG ratio of 3.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Restaurants industry stood at 1.89 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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