The upcoming report from McDonald's (MCD) is expected to reveal quarterly earnings of $2.64 per share, indicating a decline of 2.2% compared to the year-ago period. Analysts forecast revenues of $6.08 billion, representing a decrease of 1.4% year over year.
The current level reflects an upward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some McDonald's metrics that are commonly tracked and projected by analysts on Wall Street.
According to the collective judgment of analysts, 'Revenues- Franchised revenues- Total' should come in at $3.74 billion. The estimate indicates a year-over-year change of +0.5%.
Analysts forecast 'Revenues- Company-owned and operated sales- Total' to reach $2.24 billion. The estimate points to a change of -4.9% from the year-ago quarter.
The consensus estimate for 'Revenues- Total Other revenues' stands at $112.86 million. The estimate indicates a year-over-year change of +24%.
Analysts' assessment points toward 'Revenues- Company-owned and operated sales- International Developmental Licensed Markets & Corporate' reaching $161.31 million. The estimate points to a change of -23.9% from the year-ago quarter.
It is projected by analysts that the 'Systemwide restaurants - Total Systemwide' will reach 43,738. The estimate compares to the year-ago value of 42,018.
Analysts expect 'Systemwide restaurants - Total U.S.' to come in at 13,575. Compared to the present estimate, the company reported 13,469 in the same quarter last year.
The combined assessment of analysts suggests that 'Systemwide restaurants - Total International Operated Markets' will likely reach 10,552. Compared to the current estimate, the company reported 10,282 in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Systemwide restaurants - Total International Developmental Licensed Markets & Corporate' should arrive at 19,618. The estimate is in contrast to the year-ago figure of 18,267.
The consensus among analysts is that 'Systemwide restaurants - Total Franchised' will reach 41,669. Compared to the present estimate, the company reported 39,865 in the same quarter last year.
Analysts predict that the 'Systemwide restaurants - Company-owned and operated' will reach 2,055. Compared to the present estimate, the company reported 2,153 in the same quarter last year.
The collective assessment of analysts points to an estimated 'Systemwide restaurants - Franchised - Developmental licensed' of 9,327. The estimate compares to the year-ago value of 8,741.
The average prediction of analysts places 'Systemwide restaurants - Franchised - Foreign affiliated' at 10,226. The estimate is in contrast to the year-ago figure of 9,283.
View all Key Company Metrics for McDonald's here>>>
Over the past month, McDonald's shares have recorded returns of +3.1% versus the Zacks S&P 500 composite's -4.3% change. Based on its Zacks Rank #3 (Hold), MCD will likely exhibit a performance that aligns with the overall market in the upcoming period. 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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