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McDonald's (MCD) Dips More Than Broader Markets: What You Should Know

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McDonald's (MCD - Free Report) closed the most recent trading day at $234.75, moving -0.9% from the previous trading session. This move lagged the S&P 500's daily loss of 0.75%.

Coming into today, shares of the world's biggest hamburger chain had gained 1.28% in the past month. In that same time, the Retail-Wholesale sector gained 1.15%, while the S&P 500 gained 2.74%.

Wall Street will be looking for positivity from MCD as it approaches its next earnings report date. This is expected to be July 28, 2021. In that report, analysts expect MCD to post earnings of $2.11 per share. This would mark year-over-year growth of 219.7%. Meanwhile, our latest consensus estimate is calling for revenue of $5.55 billion, up 47.62% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.59 per share and revenue of $22.44 billion. These totals would mark changes of +41.98% and +16.83%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for MCD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. MCD currently has a Zacks Rank of #3 (Hold).

Digging into valuation, MCD currently has a Forward P/E ratio of 27.59. This valuation marks a premium compared to its industry's average Forward P/E of 27.17.

Investors should also note that MCD has a PEG ratio of 3.18 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants was holding an average PEG ratio of 2.92 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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