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McDonald's (MCD) Increases Despite Market Slip: Here's What You Need to Know
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McDonald's (MCD - Free Report) ended the recent trading session at $269.76, demonstrating a +1.97% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.24%.
Shares of the world's biggest hamburger chain witnessed a loss of 4.83% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 7.87%, and underperforming the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company's earnings per share (EPS) are projected to be $3.34, reflecting a 4.7% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.15 billion, indicating a 4.53% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.93 per share and a revenue of $28.42 billion, indicating changes of +5.98% and +5.71%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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 0.04% fall in the Zacks Consensus EPS estimate. McDonald's currently has a Zacks Rank of #4 (Sell).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 20.47. This signifies a premium in comparison to the average Forward P/E of 19.56 for its industry.
One should further note that MCD currently holds a PEG ratio of 2.64. 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 1.93 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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McDonald's (MCD) Increases Despite Market Slip: Here's What You Need to Know
McDonald's (MCD - Free Report) ended the recent trading session at $269.76, demonstrating a +1.97% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.24%.
Shares of the world's biggest hamburger chain witnessed a loss of 4.83% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 7.87%, and underperforming the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company's earnings per share (EPS) are projected to be $3.34, reflecting a 4.7% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.15 billion, indicating a 4.53% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.93 per share and a revenue of $28.42 billion, indicating changes of +5.98% and +5.71%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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 0.04% fall in the Zacks Consensus EPS estimate. McDonald's currently has a Zacks Rank of #4 (Sell).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 20.47. This signifies a premium in comparison to the average Forward P/E of 19.56 for its industry.
One should further note that MCD currently holds a PEG ratio of 2.64. 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 1.93 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.