In the latest close session, McDonald's (MCD) was down 1.32% at $302.35. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, added 0.55%.
Shares of the world's biggest hamburger chain have appreciated by 0.83% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 0.4%, and lagging the S&P 500's gain of 3.83%.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. The company's earnings report is set to go public on November 5, 2025. The company is expected to report EPS of $3.35, up 3.72% from the prior-year quarter. 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 full year, the Zacks Consensus Estimates project earnings of $12.32 per share and a revenue of $26.7 billion, demonstrating changes of +5.12% and +3.01%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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. Over the past month, there's been a 0.31% fall in the Zacks Consensus EPS estimate. McDonald's is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 24.87 right now. This valuation marks a premium compared to its industry average Forward P/E of 21.5.
It is also worth noting that MCD currently has a PEG ratio of 3.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.21.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 11% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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