McDonald's (MCD) closed at $298.39 in the latest trading session, marking a +1.83% move from the prior day. This change outpaced the S&P 500's 0.28% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.09%.
Shares of the world's biggest hamburger chain have depreciated by 2.88% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.87%, and the S&P 500's gain of 4.37%.
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 August 6, 2025. On that day, McDonald's is projected to report earnings of $3.14 per share, which would represent year-over-year growth of 5.72%. At the same time, our most recent consensus estimate is projecting a revenue of $6.7 billion, reflecting a 3.28% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $12.25 per share and a revenue of $26.38 billion, demonstrating changes of +4.52% and +1.77%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for McDonald's. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, McDonald's is presently trading at a Forward P/E ratio of 23.93. This valuation marks a premium compared to its industry average Forward P/E of 22.59.
Investors should also note that MCD has a PEG ratio of 3.06 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MCD's industry had an average PEG ratio of 2.64 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 36% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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McDonald's Corporation (MCD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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