In the latest close session, McDonald's (MCD) was down 1.11% at $300.25. The stock's change was less than the S&P 500's daily loss of 0.37%. At the same time, the Dow lost 0.74%, and the tech-heavy Nasdaq lost 0.03%.
Shares of the world's biggest hamburger chain witnessed a gain of 3.05% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 2.03%, and the S&P 500's gain of 2.68%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company plans to announce its earnings on August 6, 2025. The company is predicted to post an EPS of $3.15, indicating a 6.06% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.71 billion, indicating a 3.45% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.27 per share and a revenue of $26.42 billion, representing changes of +4.69% and +1.93%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. As of now, McDonald's holds a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 24.74. This signifies a premium in comparison to the average Forward P/E of 19.39 for its industry.
It is also worth noting that MCD currently has a PEG ratio of 3.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.51.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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