Analysts on Wall Street project that McDonald's (MCD) will announce quarterly earnings of $3.04 per share in its forthcoming report, representing an increase of 7.4% year over year. Revenues are projected to reach $6.83 billion, increasing 7% from the same quarter last year.
Over the last 30 days, there has been an upward revision of 0.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Bearing this in mind, let's now explore the average estimates of specific McDonald's metrics that are commonly monitored and projected by Wall Street analysts.
Based on the collective assessment of analysts, 'Revenues- Company-owned and operated sales- Total' should arrive at $2.48 billion. The estimate indicates a year-over-year change of +7.2%.
The combined assessment of analysts suggests that 'Revenues- Franchised revenues- Total' will likely reach $4.21 billion. The estimate suggests a change of +6.3% year over year.
The consensus among analysts is that 'Revenues- Total Other revenues' will reach $152.84 million. The estimate indicates a change of +27.4% from the prior-year quarter.
The consensus estimate for 'Revenues- Company-owned and operated sales- U.S.' stands at $791.12 million. The estimate suggests a change of +1.4% year over year.
The collective assessment of analysts points to an estimated 'Systemwide restaurants - Total Systemwide' of 45,292 . Compared to the present estimate, the company reported 43,477 in the same quarter last year.
Analysts forecast 'Comparable sales growth - International Developmental Licensed Markets & Corporate - YoY change' to reach 2.9%. Compared to the current estimate, the company reported 4.1% in the same quarter of the previous year.
Analysts predict that the 'Systemwide restaurants - Total International Operated Markets' will reach 10,793 . The estimate compares to the year-ago value of 10,512 .
Analysts' assessment points toward 'Systemwide restaurants - Total International Developmental Licensed Markets & Corporate' reaching 20,816 . Compared to the current estimate, the company reported 19,408 in the same quarter of the previous year.
It is projected by analysts that the 'Systemwide restaurants - Total U.S.' will reach 13,688 . The estimate is in contrast to the year-ago figure of 13,557 .
Analysts expect 'Systemwide restaurants - Company-owned and operated' to come in at 2,068 . Compared to the current estimate, the company reported 2,045 in the same quarter of the previous year.
The average prediction of analysts places 'Systemwide restaurants - Total Franchised' at 43,220 . Compared to the current estimate, the company reported 41,432 in the same quarter of the previous year.
According to the collective judgment of analysts, 'Systemwide restaurants - Franchised - Conventional franchised' should come in at 22,457 . Compared to the present estimate, the company reported 22,077 in the same quarter last year.
View all Key Company Metrics for McDonald's here>>>
Shares of McDonald's have experienced a change of +4.7% in the past month compared to the -1.5% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), MCD is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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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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