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McDonald's (MCD) Stock Sinks As Market Gains: Here's Why
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McDonald's (MCD - Free Report) closed the most recent trading day at $290.21, moving -3.06% from the previous trading session. This change lagged the S&P 500's 0.12% gain on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.2%.
The world's biggest hamburger chain's shares have seen a decrease of 2.14% over the last month, not keeping up with the Retail-Wholesale sector's gain of 12.69% and the S&P 500's gain of 9.3%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company's earnings report is expected on May 7, 2026. It is anticipated that the company will report an EPS of $2.75, marking a 3% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.48 billion, showing a 8.82% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $13.21 per share and a revenue of $28.69 billion, demonstrating changes of +8.28% and +6.71%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.15% fall in the Zacks Consensus EPS estimate. McDonald's is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 22.66. For comparison, its industry has an average Forward P/E of 19.96, which means McDonald's is trading at a premium to the group.
Also, we should mention that MCD has a PEG ratio of 2.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCD's industry had an average PEG ratio of 1.97 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 31% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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McDonald's (MCD) Stock Sinks As Market Gains: Here's Why
McDonald's (MCD - Free Report) closed the most recent trading day at $290.21, moving -3.06% from the previous trading session. This change lagged the S&P 500's 0.12% gain on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.2%.
The world's biggest hamburger chain's shares have seen a decrease of 2.14% over the last month, not keeping up with the Retail-Wholesale sector's gain of 12.69% and the S&P 500's gain of 9.3%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company's earnings report is expected on May 7, 2026. It is anticipated that the company will report an EPS of $2.75, marking a 3% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.48 billion, showing a 8.82% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $13.21 per share and a revenue of $28.69 billion, demonstrating changes of +8.28% and +6.71%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.15% fall in the Zacks Consensus EPS estimate. McDonald's is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 22.66. For comparison, its industry has an average Forward P/E of 19.96, which means McDonald's is trading at a premium to the group.
Also, we should mention that MCD has a PEG ratio of 2.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCD's industry had an average PEG ratio of 1.97 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 31% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.