Fast food stock McDonald's Corp (NYSE:MCD) isn't faring too well ahead of the company's first-quarter earnings report, due out before the open on Thursday, May 7. The shares a hit a one-year low of $283.02 earlier today, and are seeing pressure from the 10-day moving average. Year to date, the equity is down 6.8%.
Analysts anticipate earnings of $2.75 per share on revenue of $6.49 billion, representing a year-over-year increase of 3% and roughly 8.6%, respectively. McDonald's has been focusing on the value menu, as well as the "Best Burger" initiative.
The stock has a mixed earnings history, averaging a 2.5% post-earnings move, regardless of direction. This time around, the options pits are pricing in a 4.9% swing on Thursday.
Calls have been much more popular than usual in the options pits, per MCD's 10-day call/put volume ratio of 2.13 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 96% of readings from the past year. An unwinding of some of this optimism could provide further headwinds.
