McDonald's (MCD) closed the most recent trading day at $298.47, moving +1.35% from the previous trading session. This change outpaced the S&P 500's 0.4% gain on the day. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.24%.
The stock of world's biggest hamburger chain has risen by 3.1% in the past month, lagging the Retail-Wholesale sector's gain of 4.05% and the S&P 500's gain of 4.61%.
The investment community will be closely monitoring the performance of McDonald's in its forthcoming earnings report. The company is scheduled to release its earnings on August 6, 2025. On that day, McDonald's is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.06%. Alongside, our most recent consensus estimate is anticipating revenue of $6.71 billion, indicating a 3.43% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.27 per share and a revenue of $26.42 billion, signifying shifts of +4.69% and +1.94%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.23% upward. McDonald's is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 23.99 right now. Its industry sports an average Forward P/E of 20.91, so one might conclude that McDonald's is trading at a premium comparatively.
Also, we should mention that MCD has a PEG ratio of 3.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.6.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 163, this industry ranks in the bottom 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
McDonald's Corporation (MCD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
