We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
McDonald's (MCD) Gears Up for Q2 Earnings: What's in Store?
Read MoreHide Full Article
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.
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.
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%.
Image: Bigstock
McDonald's (MCD) Gears Up for Q2 Earnings: What's in Store?
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.
McDonald's Corporation Price and EPS Surprise
McDonald's Corporation price-eps-surprise | McDonald's Corporation Quote
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.