McDonald's (MCD) closed at $210.52 in the latest trading session, marking a +0.04% move from the prior day. This change outpaced the S&P 500's 0% on the day. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq added 0.07%.
Coming into today, shares of the world's biggest hamburger chain had lost 4.66% in the past month. In that same time, the Retail-Wholesale sector gained 4.58%, while the S&P 500 gained 4.25%.
Wall Street will be looking for positivity from MCD as it approaches its next earnings report date. In that report, analysts expect MCD to post earnings of $2.22 per share. This would mark year-over-year growth of 5.71%. Our most recent consensus estimate is calling for quarterly revenue of $5.49 billion, up 2.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.01 per share and revenue of $21.12 billion. These totals would mark changes of +1.39% and +0.47%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MCD. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. MCD is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MCD currently has a Forward P/E ratio of 26.29. This valuation marks a premium compared to its industry's average Forward P/E of 23.53.
It is also worth noting that MCD currently has a PEG ratio of 3.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MCD's industry had an average PEG ratio of 2.37 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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