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Compared to Estimates, McDonald's (MCD) Q2 Earnings: A Look at Key Metrics
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McDonald's (MCD - Free Report) reported $6.5 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 13.6%. EPS of $3.17 for the same period compares to $2.55 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $6.23 billion, representing a surprise of +4.31%. The company delivered an EPS surprise of +14.44%, with the consensus EPS estimate being $2.77.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how McDonald's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable sales growth - International Developmental Licensed Markets & Corporate - YoY change: 14% versus the 10-analyst average estimate of 10.55%.
Comparable sales growth - U.S. - YoY change: 10.3% compared to the 8.82% average estimate based on 10 analysts.
Comparable sales growth - International Operated Markets - YoY change: 11.9% versus 8.23% estimated by 10 analysts on average.
Systemwide restaurants - Total Systemwide: 40801 versus the nine-analyst average estimate of 40856.45.
Revenues- Total Franchised revenues: $3.93 billion versus $3.82 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.
Revenues- Total Company-operated sales: $2.49 billion versus the 11-analyst average estimate of $2.32 billion. The reported number represents a year-over-year change of +17.7%.
Revenues- Total Other revenues: $77.20 million versus the nine-analyst average estimate of $86.75 million. The reported number represents a year-over-year change of -2%.
Revenues- Company-operated sales- International Operated Markets: $1.46 billion versus $1.26 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +19.5% change.
Revenues- Company-operated sales- International Developmental Licensed Markets & Corporate: $202.40 million versus $207.56 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +9.4% change.
Revenues- Franchised revenues- U.S. $1.83 billion versus $1.80 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.1% change.
Revenues- Franchised revenues- International Operated Markets: $1.66 billion versus $1.63 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +11.2% change.
Revenues- Franchised revenues- International Developmental Licensed Markets & Corporate: $438.30 million compared to the $420.70 million average estimate based on five analysts. The reported number represents a change of +19.4% year over year.
Shares of McDonald's have remained unchanged over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Compared to Estimates, McDonald's (MCD) Q2 Earnings: A Look at Key Metrics
McDonald's (MCD - Free Report) reported $6.5 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 13.6%. EPS of $3.17 for the same period compares to $2.55 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $6.23 billion, representing a surprise of +4.31%. The company delivered an EPS surprise of +14.44%, with the consensus EPS estimate being $2.77.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how McDonald's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Comparable sales growth - International Developmental Licensed Markets & Corporate - YoY change: 14% versus the 10-analyst average estimate of 10.55%.
- Comparable sales growth - U.S. - YoY change: 10.3% compared to the 8.82% average estimate based on 10 analysts.
- Comparable sales growth - International Operated Markets - YoY change: 11.9% versus 8.23% estimated by 10 analysts on average.
- Systemwide restaurants - Total Systemwide: 40801 versus the nine-analyst average estimate of 40856.45.
- Revenues- Total Franchised revenues: $3.93 billion versus $3.82 billion estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.
- Revenues- Total Company-operated sales: $2.49 billion versus the 11-analyst average estimate of $2.32 billion. The reported number represents a year-over-year change of +17.7%.
- Revenues- Total Other revenues: $77.20 million versus the nine-analyst average estimate of $86.75 million. The reported number represents a year-over-year change of -2%.
- Revenues- Company-operated sales- International Operated Markets: $1.46 billion versus $1.26 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +19.5% change.
- Revenues- Company-operated sales- International Developmental Licensed Markets & Corporate: $202.40 million versus $207.56 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +9.4% change.
- Revenues- Franchised revenues- U.S. $1.83 billion versus $1.80 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.1% change.
- Revenues- Franchised revenues- International Operated Markets: $1.66 billion versus $1.63 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +11.2% change.
- Revenues- Franchised revenues- International Developmental Licensed Markets & Corporate: $438.30 million compared to the $420.70 million average estimate based on five analysts. The reported number represents a change of +19.4% year over year.
View all Key Company Metrics for McDonald's here>>>Shares of McDonald's have remained unchanged over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.