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McDonald's (MCD) Stock Moves -0.27%: What You Should Know

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The latest trading session saw McDonald's (MCD - Free Report) ending at $253.37, denoting a -0.27% adjustment from its last day's close. This change was narrower than the S&P 500's 2.32% loss on the day. On the other hand, the Dow registered a loss of 1.25%, and the technology-centric Nasdaq decreased by 3.64%.

Prior to today's trading, shares of the world's biggest hamburger chain had lost 1.29% over the past month. This has lagged the Retail-Wholesale sector's loss of 0.68% and the S&P 500's gain of 1.79% in that time.

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 July 29, 2024. On that day, McDonald's is projected to report earnings of $3.08 per share, which would represent a year-over-year decline of 2.84%. Meanwhile, our latest consensus estimate is calling for revenue of $6.65 billion, up 2.4% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $12.13 per share and a revenue of $26.56 billion, demonstrating changes of +1.59% and +4.17%, respectively, from the preceding 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.51% downward. As of now, McDonald's holds a Zacks Rank of #3 (Hold).

In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 20.95. This indicates a premium in contrast to its industry's Forward P/E of 19.51.

Meanwhile, MCD's PEG ratio is currently 2.92. 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. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.87.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 37% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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