McDonald's (MCD) closed at $196.20 in the latest trading session, marking a -0.48% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 0.23%.
Coming into today, shares of the world's biggest hamburger chain had gained 2.49% in the past month. In that same time, the Retail-Wholesale sector gained 4.61%, while the S&P 500 gained 3.81%.
Wall Street will be looking for positivity from MCD as it approaches its next earnings report date. On that day, MCD is projected to report earnings of $1.96 per share, which would represent a year-over-year decline of 0.51%. Meanwhile, our latest consensus estimate is calling for revenue of $5.30 billion, up 2.69% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.84 per share and revenue of $21.04 billion, which would represent changes of -0.76% and +0.06%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MCD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. MCD currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MCD has a Forward P/E ratio of 25.16 right now. Its industry sports an average Forward P/E of 23.71, so we one might conclude that MCD is trading at a premium comparatively.
Meanwhile, MCD's PEG ratio is currently 2.99. 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 2.24 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 73, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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