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McDonald's (MCD) to Post Q2 Earnings: What's in the Offing?

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McDonald's Corporation MCD is scheduled to report second-quarter 2021 results on Jul 28, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 6.1%.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter earnings is pegged at $2.12 per share. The company had reported earnings of 66 cents in the year-ago quarter. The consensus mark for revenues stands at $5.6 billion, suggesting an improvement of 48.2% from the prior-year quarter.

Factors to Note

McDonald's second-quarter results are likely to reflect benefits of the company’s expansion efforts and robust digitalization. Amid the coronavirus pandemic, it has been focusing on drive-thru, delivery & take-away. Prior to the coronavirus crisis, drive-thru accounted for about two-thirds of all sales in the United States. Drive-thru now accounts for approximately 90% of sales. The company has more than 25,000 drive-thrus globally. McDonald’s strategic efforts in the international markets continue to drive comps higher. During first-quarter 2021, the company recorded nearly $1.5 billion in digital sales, which includes app, kiosks and delivery.

After reporting dismal comps in the trailing four quarters due to the coronavirus pandemic, the company reported robust comps in first-quarter 2021. The uptrend is likely to have continued in the second quarter. However, dismal traffic and dine-in in services several markets might have weighed on the to-be-reported quarter’s performance.

McDonalds Corporation Price and EPS Surprise

McDonalds Corporation Price and EPS Surprise
McDonalds Corporation Price and EPS Surprise

McDonalds Corporation price-eps-surprise | McDonalds Corporation Quote

What the Zacks Model Unveils

Our proven model doesn’t predict an earnings beat for McDonald's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

McDonald's has an Earnings ESP of -0.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Retail-Wholesale space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

BJ's Restaurants, Inc. BJRI has an Earnings ESP of + 16.33% and a Zacks Rank #2.

Papa John's International, Inc. PZZA has an Earnings ESP of +6.56% and a Zacks Rank #2.

Restaurant Brands International Inc. QSR has an Earnings ESP of +0.37% and a Zacks Rank #2.


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BJs Restaurants, Inc. (BJRI) : Free Stock Analysis Report

McDonalds Corporation (MCD) : Free Stock Analysis Report

Papa Johns International, Inc. (PZZA) : Free Stock Analysis Report

Restaurant Brands International Inc. (QSR) : Free Stock Analysis Report

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