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McDonald's (MCD) Stock Falls Amid Market Uptick: What Investors Need to Know
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The most recent trading session ended with McDonald's (MCD - Free Report) standing at $250.92, reflecting a -0.24% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.43%. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.71%.
The world's biggest hamburger chain's shares have seen a decrease of 10.4% over the last month, not keeping up with the Retail-Wholesale sector's loss of 4.9% and the S&P 500's loss of 2.1%.
The investment community will be paying close attention to the earnings performance of McDonald's in its upcoming release. The company is slated to reveal its earnings on October 30, 2023. The company is forecasted to report an EPS of $2.99, showcasing a 11.57% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $6.57 billion, reflecting a 11.84% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.52 per share and a revenue of $25.46 billion, indicating changes of +14.06% and +9.83%, respectively, from the former year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, McDonald's holds a Zacks Rank of #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 21.84. This indicates a premium in contrast to its industry's Forward P/E of 19.82.
It's also important to note that MCD currently trades at a PEG ratio of 2.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants industry currently had an average PEG ratio of 1.58 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 41% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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McDonald's (MCD) Stock Falls Amid Market Uptick: What Investors Need to Know
The most recent trading session ended with McDonald's (MCD - Free Report) standing at $250.92, reflecting a -0.24% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.43%. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.71%.
The world's biggest hamburger chain's shares have seen a decrease of 10.4% over the last month, not keeping up with the Retail-Wholesale sector's loss of 4.9% and the S&P 500's loss of 2.1%.
The investment community will be paying close attention to the earnings performance of McDonald's in its upcoming release. The company is slated to reveal its earnings on October 30, 2023. The company is forecasted to report an EPS of $2.99, showcasing a 11.57% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $6.57 billion, reflecting a 11.84% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.52 per share and a revenue of $25.46 billion, indicating changes of +14.06% and +9.83%, respectively, from the former year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, McDonald's holds a Zacks Rank of #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 21.84. This indicates a premium in contrast to its industry's Forward P/E of 19.82.
It's also important to note that MCD currently trades at a PEG ratio of 2.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants industry currently had an average PEG ratio of 1.58 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 41% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.