McDonald's (MCD) closed the most recent trading day at $312.95, moving +1.2% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.5%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.43%.
Shares of the world's biggest hamburger chain have depreciated by 0.46% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 5.24%, and the S&P 500's gain of 0.18%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company's earnings report is expected on February 11, 2026. The company is forecasted to report an EPS of $3.01, showcasing a 6.36% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $6.82 billion, indicating a 6.83% upward movement from the same quarter last year.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $12.1 per share and revenue of $26.68 billion. These results would represent year-over-year changes of +3.24% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. Right now, McDonald's possesses a Zacks Rank of #3 (Hold).
Looking at valuation, McDonald's is presently trading at a Forward P/E ratio of 23.24. This denotes a premium relative to the industry average Forward P/E of 20.26.
We can also see that MCD currently has a PEG ratio of 3.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.14.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 202, finds itself in the bottom 18% echelons 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.
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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