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McDonald's (MCD) Down 1.1% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for McDonald's (MCD - Free Report) . Shares have lost about 1.1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is McDonald's due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, McDonald's has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, McDonald's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
McDonald's belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Yum China Holdings (YUMC - Free Report) , has gained 3.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.
Yum China reported revenues of $2.6 billion in the last reported quarter, representing a year-over-year change of +4.1%. EPS of $0.30 for the same period compares with $0.25 a year ago.
Yum China is expected to post earnings of $0.78 per share for the current quarter, representing a year-over-year change of +9.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.7%.
Yum China has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.