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Here's Why McDonald's (MCD) Fell More Than Broader Market
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In the latest trading session, McDonald's (MCD - Free Report) closed at $306.94, marking a -1.42% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.24% for the day. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq depreciated by 0.26%.
Coming into today, shares of the world's biggest hamburger chain had gained 0.81% in the past month. In that same time, the Retail-Wholesale sector gained 7.72%, while the S&P 500 gained 6.42%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company plans to announce its earnings on May 7, 2026. The company's upcoming EPS is projected at $2.75, signifying a 3.00% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.49 billion, showing a 8.92% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.22 per share and a revenue of $28.7 billion, indicating changes of +8.36% and +6.74%, respectively, from the former year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.12% lower. McDonald's currently has a Zacks Rank of #3 (Hold).
In the context of valuation, McDonald's is at present trading with a Forward P/E ratio of 23.56. This expresses a premium compared to the average Forward P/E of 19.3 of its industry.
Investors should also note that MCD has a PEG ratio of 2.81 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MCD's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 175, positioning it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why McDonald's (MCD) Fell More Than Broader Market
In the latest trading session, McDonald's (MCD - Free Report) closed at $306.94, marking a -1.42% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.24% for the day. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq depreciated by 0.26%.
Coming into today, shares of the world's biggest hamburger chain had gained 0.81% in the past month. In that same time, the Retail-Wholesale sector gained 7.72%, while the S&P 500 gained 6.42%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company plans to announce its earnings on May 7, 2026. The company's upcoming EPS is projected at $2.75, signifying a 3.00% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.49 billion, showing a 8.92% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.22 per share and a revenue of $28.7 billion, indicating changes of +8.36% and +6.74%, respectively, from the former year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0.12% lower. McDonald's currently has a Zacks Rank of #3 (Hold).
In the context of valuation, McDonald's is at present trading with a Forward P/E ratio of 23.56. This expresses a premium compared to the average Forward P/E of 19.3 of its industry.
Investors should also note that MCD has a PEG ratio of 2.81 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MCD's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 175, positioning it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.