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McDonald's (MCD) Rises As Market Takes a Dip: Key Facts

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In the latest close session, McDonald's (MCD - Free Report) was up +2.75% at $257.38. The stock's performance was ahead of the S&P 500's daily loss of 0.31%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.38%.

The world's biggest hamburger chain's stock has climbed by 8.47% in the past month, exceeding the Retail-Wholesale sector's gain of 3.86% and the S&P 500's gain of 0.87%.

Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 4, 2026. The company is forecasted to report an EPS of $3.36, showcasing a 4.35% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $7.28 billion, reflecting a 2.88% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.83 per share and a revenue of $28.15 billion, signifying shifts of +5.16% and +4.7%, respectively, from the last 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. McDonald's currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, McDonald's is holding a Forward P/E ratio of 19.52. This valuation marks a discount compared to its industry average Forward P/E of 21.59.

We can additionally observe that MCD currently boasts a PEG ratio of 2.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Restaurants industry stood at 1.84 at the close of the market yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 40% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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