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McDonald's (MCD) Earnings & Revenues Beat Estimates in Q1
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McDonald's Corporation (MCD - Free Report) reported first-quarter 2021 results, wherein both earnings and revenues outpaced the Zacks Consensus Estimate. Notably, the top line beat the consensus mark after missing the same in the preceding quarter.
Robust drive-thru presence and its investments in delivery and digital over the past few years have aided the company amid the ongoing crisis. Robust digitalization will continue to help the company in driving long-term growth and capturing market share.
McDonald's president and CEO Chris Kempczinski said “Our first quarter 2021 global comparable sales and revenues surpassed first quarter 2019 levels, even as resurgences and operating restrictions persist in many parts of the world.”
The company reported adjusted earnings of $1.92 per share, which surpassed the Zacks Consensus Estimate of $1.81. Moreover, the bottom line improved 31% year over year. Meanwhile, foreign currency translation had a positive impact of 6 cents per share on earnings in the quarter under review.
McDonalds Corporation Price, Consensus and EPS Surprise
In the first quarter, revenues of $5,124.6 million beat the Zacks Consensus Estimate of $5,047 million. Moreover, the figure rose 9% year over year. The top line benefited from increase in global comparable sales.
At company-operated restaurants, revenues were $2,161.5 million, up 7% year over year. Moreover, the same at franchise-operated restaurants came in at $2,877.4 million, up 10% year over year.
In the quarter, global comps advanced 7.5%, against a decline of 3.4% in the prior-year quarter. Comps increased in the quarter after declining in the preceding four quarters.
Solid Comps Across Segments
U.S.: Comps at this segment rose 13.6% in the first quarter, compared with a gain of 0.1% in the prior-year quarter. The company’s comps in the quarter gained from robust average check growth.
International Operated Markets: Comps at this segment inched up 0.6% year over year, against a decline of 6.9% in the year-ago quarter.
International Developmental Licensed Segment: The segment’s comparable sales increased 6.4% in the first quarter. In the prior-year quarter, the segment’s comps had declined 4.3%.
Darden’s fiscal 2021 earnings are expected to rise 26.5%.
Yum! Brands and Chuy's Holdings’ 2021 earnings are expected to rise 8.6% and 35.7%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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McDonald's (MCD) Earnings & Revenues Beat Estimates in Q1
McDonald's Corporation (MCD - Free Report) reported first-quarter 2021 results, wherein both earnings and revenues outpaced the Zacks Consensus Estimate. Notably, the top line beat the consensus mark after missing the same in the preceding quarter.
Robust drive-thru presence and its investments in delivery and digital over the past few years have aided the company amid the ongoing crisis. Robust digitalization will continue to help the company in driving long-term growth and capturing market share.
McDonald's president and CEO Chris Kempczinski said “Our first quarter 2021 global comparable sales and revenues surpassed first quarter 2019 levels, even as resurgences and operating restrictions persist in many parts of the world.”
The company reported adjusted earnings of $1.92 per share, which surpassed the Zacks Consensus Estimate of $1.81. Moreover, the bottom line improved 31% year over year. Meanwhile, foreign currency translation had a positive impact of 6 cents per share on earnings in the quarter under review.
McDonalds Corporation Price, Consensus and EPS Surprise
McDonalds Corporation price-consensus-eps-surprise-chart | McDonalds Corporation Quote
Revenues & Comps Discussion
In the first quarter, revenues of $5,124.6 million beat the Zacks Consensus Estimate of $5,047 million. Moreover, the figure rose 9% year over year. The top line benefited from increase in global comparable sales.
At company-operated restaurants, revenues were $2,161.5 million, up 7% year over year. Moreover, the same at franchise-operated restaurants came in at $2,877.4 million, up 10% year over year.
In the quarter, global comps advanced 7.5%, against a decline of 3.4% in the prior-year quarter. Comps increased in the quarter after declining in the preceding four quarters.
Solid Comps Across Segments
U.S.: Comps at this segment rose 13.6% in the first quarter, compared with a gain of 0.1% in the prior-year quarter. The company’s comps in the quarter gained from robust average check growth.
International Operated Markets: Comps at this segment inched up 0.6% year over year, against a decline of 6.9% in the year-ago quarter.
International Developmental Licensed Segment: The segment’s comparable sales increased 6.4% in the first quarter. In the prior-year quarter, the segment’s comps had declined 4.3%.
Zacks Rank & Key Picks
McDonald's carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail - Restaurants include Darden Restaurants, Inc. (DRI - Free Report) , Yum! Brands, Inc. (YUM - Free Report) and Chuy's Holdings, Inc. (CHUY - Free Report) . Darden sports a Zacks Rank #1 (Strong Buy), while Yum! Brands and Chuy's Holdings carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Darden’s fiscal 2021 earnings are expected to rise 26.5%.
Yum! Brands and Chuy's Holdings’ 2021 earnings are expected to rise 8.6% and 35.7%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>