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McDonald's (MCD) Stock Moves -1.26%: What You Should Know
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McDonald's (MCD - Free Report) closed at $254.49 in the latest trading session, marking a -1.26% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.37%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 1.87%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 8.25% over the past month. This has lagged the Retail-Wholesale sector's loss of 5.77% and the S&P 500's loss of 4.93% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release, which is expected to be October 30, 2023. In that report, analysts expect McDonald's to post earnings of $2.98 per share. This would mark year-over-year growth of 11.19%. Meanwhile, our latest consensus estimate is calling for revenue of $6.56 billion, up 11.71% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.52 per share and revenue of $25.45 billion, which would represent changes of +14.06% and +9.79%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for McDonald's. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant. McDonald's is currently a Zacks Rank #3 (Hold).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 22.38. Its industry sports an average Forward P/E of 19.94, so we one might conclude that McDonald's is trading at a premium comparatively.
It is also worth noting that MCD currently has a PEG ratio of 2.51. 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. MCD's industry had an average PEG ratio of 1.67 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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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McDonald's (MCD) Stock Moves -1.26%: What You Should Know
McDonald's (MCD - Free Report) closed at $254.49 in the latest trading session, marking a -1.26% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.37%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 1.87%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 8.25% over the past month. This has lagged the Retail-Wholesale sector's loss of 5.77% and the S&P 500's loss of 4.93% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release, which is expected to be October 30, 2023. In that report, analysts expect McDonald's to post earnings of $2.98 per share. This would mark year-over-year growth of 11.19%. Meanwhile, our latest consensus estimate is calling for revenue of $6.56 billion, up 11.71% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.52 per share and revenue of $25.45 billion, which would represent changes of +14.06% and +9.79%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for McDonald's. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant. McDonald's is currently a Zacks Rank #3 (Hold).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 22.38. Its industry sports an average Forward P/E of 19.94, so we one might conclude that McDonald's is trading at a premium comparatively.
It is also worth noting that MCD currently has a PEG ratio of 2.51. 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. MCD's industry had an average PEG ratio of 1.67 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.