McDonald's (MCD) closed at $312.48 in the latest trading session, marking a -1.14% move from the prior day. This move lagged the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.39%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
Coming into today, shares of the world's biggest hamburger chain had gained 3.98% in the past month. In that same time, the Retail-Wholesale sector lost 2.42%, while the S&P 500 lost 3.94%.
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 May 1, 2025. On that day, McDonald's is projected to report earnings of $2.67 per share, which would represent a year-over-year decline of 1.11%. Meanwhile, our latest consensus estimate is calling for revenue of $6.13 billion, down 0.68% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.25 per share and revenue of $26.38 billion, which would represent changes of +4.52% and +1.79%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.17% upward. McDonald's currently has a Zacks Rank of #3 (Hold).
Looking at valuation, McDonald's is presently trading at a Forward P/E ratio of 25.81. This denotes a premium relative to the industry's average Forward P/E of 20.98.
Also, we should mention that MCD has a PEG ratio of 3.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants was holding an average PEG ratio of 2.05 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 19% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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