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McDonald's (MCD) Tops Q3 Earnings & Revenue Estimates

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McDonald’s Corp. (MCD - Free Report) is a leading fast-food chain that offers various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. The company aims to continuously build its brand by adapting to changing consumer preference.

McDonald’s comps have improved in its key regions over the last few quarters on the back of the company’s strategic efforts to boost sales. It has been focusing on menu innovation, introduction of value meals, efficient marketing and promotions, and improved service to drive top line. Meanwhile, McDonald’s is also working on a digital strategy and mobile technologies to lower costs.

However, a slowdown in emerging markets and soft industry growth has been denting sales while high costs along with negative currency translation is hurting the company’s profitability.

Investors should note that the consensus estimate for MCD has been moving slightly downwards over the last 60 days.  However, MCD’s earnings have been strong over the past few quarters. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 6.35%. Revenues also posted positive surprises in three of the trailing four quarters.

MCDONALDS CORP Price and EPS Surprise

 

MCDONALDS CORP Price and EPS Surprise | MCDONALDS CORP Quote

MCD currently has a Zacks Rank #4 (Sell) but that could change following McDonald’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: MCD beats on earnings. Our consensus earnings estimate called for earnings per share of $1.48, and the company reported earnings of $1.62 per share. Investors should note that these figures take out stock option expenses.

Revenues: MCD reported revenues of nearly $6.42 billion. This beat our consensus estimate of $6.29 billion.

Key Stats to Note: Global comps for the third-quarter 2016 grew 3.5% that compared favorably to 3.1% growth in the preceding quarter. All the segments posted positive comps. However, foreign currency translation hurt profits.

Stock Price Impact: At the time of writing, the stock price of McDonald’s was up over 3% during pre-market trading hours following the earnings release.

Check back later for our full write up on this MCD earnings report!

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