McDonald's (MCD) closed the most recent trading day at $306.97, moving -1.01% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.58%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 0.89%.
The world's biggest hamburger chain's shares have seen an increase of 1.9% over the last month, surpassing the Retail-Wholesale sector's loss of 3.04% and the S&P 500's gain of 0.16%.
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 5, 2025. In that report, analysts expect McDonald's to post earnings of $3.36 per share. This would mark year-over-year growth of 4.02%. Alongside, our most recent consensus estimate is anticipating revenue of $7.07 billion, indicating a 2.83% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.33 per share and a revenue of $26.7 billion, representing changes of +5.2% and +3.01%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. McDonald's is currently a Zacks Rank #4 (Sell).
From a valuation perspective, McDonald's is currently exchanging hands at a Forward P/E ratio of 25.16. This indicates a premium in contrast to its industry's Forward P/E of 23.38.
We can also see that MCD currently has a PEG ratio of 3.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.28 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 225, this industry ranks in the bottom 9% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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