The most recent trading session ended with McDonald's (MCD) standing at $312.69, reflecting a -0.28% shift from the previouse trading day's closing. This change was narrower than the S&P 500's 0.33% loss on the day. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.53%.
The world's biggest hamburger chain's stock has climbed by 3.06% in the past month, exceeding the Retail-Wholesale sector's loss of 6.29% and the S&P 500's loss of 4.03%.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.68, signifying a 0.74% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.13 billion, down 0.58% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.25 per share and a revenue of $26.4 billion, representing changes of +4.52% and +1.87%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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 company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. At present, McDonald's boasts a Zacks Rank of #3 (Hold).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 25.59. This represents a premium compared to its industry's average Forward P/E of 23.09.
Also, we should mention that MCD has a PEG ratio of 3.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Restaurants industry stood at 2.2 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 165, placing it within the bottom 35% of over 250 industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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
