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McDonald's (MCD) Q3 Earnings Top, Revenues Miss Estimates
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McDonald’s Corp. (MCD - Free Report) is a leading fast-food chain that offers various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. The company aims to continuously build its brand by adapting to changing consumer preference.
McDonald’s comps have improved in its key regions over the last few quarters on the back of the company’s strategic efforts to boost sales. It has been focusing on operational excellence, product innovation, undertaking efficient marketing and promotions, offering a value menu, and rolling out more limited-time offerings to improve guest count – which remains the company’s top priority – and drive the top line.
Meanwhile, efforts to enhance digital capabilities, increased focus on delivery and accelerated deployment of Experience of the Future restaurants in the United States should further drive growth.
However, a slowdown in emerging markets and soft industry growth has been hurting sales while high costs along with negative currency translation is denting the company’s profitability.
Investors should note that the consensus estimate for MCD has been moving slightly upwards over the last 60 days. Meanwhile, MCD’s earnings have been strong over the past few quarters. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 7.44%. Revenues also posted positive surprises in all of the trailing four quarters.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MCD beats on earnings. Our consensus earnings estimate called for earnings per share of $1.75, and the company reported adjusted earnings of $1.76 per share.
Revenues: MCD reported revenues of nearly $5.75 billion. This missed our consensus estimate of $5.80 billion.
Key Stats to Note: Global comps for the third-quarter 2017 grew 6%, slightly lower than the 6.6% growth in the preceding quarter. All the segments posted positive guest counts. However, foreign currency translation somewhat hurt results.
Stock Price Impact: At the time of writing, the stock price of McDonald’s was up 0.2% during pre-market trading hours following the earnings release.
Check back later for our full write up on this MCD earnings report!
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McDonald's (MCD) Q3 Earnings Top, Revenues Miss Estimates
McDonald’s Corp. (MCD - Free Report) is a leading fast-food chain that offers various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. The company aims to continuously build its brand by adapting to changing consumer preference.
McDonald’s comps have improved in its key regions over the last few quarters on the back of the company’s strategic efforts to boost sales. It has been focusing on operational excellence, product innovation, undertaking efficient marketing and promotions, offering a value menu, and rolling out more limited-time offerings to improve guest count – which remains the company’s top priority – and drive the top line.
Meanwhile, efforts to enhance digital capabilities, increased focus on delivery and accelerated deployment of Experience of the Future restaurants in the United States should further drive growth.
However, a slowdown in emerging markets and soft industry growth has been hurting sales while high costs along with negative currency translation is denting the company’s profitability.
Investors should note that the consensus estimate for MCD has been moving slightly upwards over the last 60 days. Meanwhile, MCD’s earnings have been strong over the past few quarters. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 7.44%. Revenues also posted positive surprises in all of the trailing four quarters.
McDonald's Corporation Price and EPS Surprise
McDonald's Corporation Price and EPS Surprise | McDonald's Corporation Quote
MCD currently has a Zacks Rank #2 (Buy) but that could change following McDonald’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MCD beats on earnings. Our consensus earnings estimate called for earnings per share of $1.75, and the company reported adjusted earnings of $1.76 per share.
Revenues: MCD reported revenues of nearly $5.75 billion. This missed our consensus estimate of $5.80 billion.
Key Stats to Note: Global comps for the third-quarter 2017 grew 6%, slightly lower than the 6.6% growth in the preceding quarter. All the segments posted positive guest counts. However, foreign currency translation somewhat hurt results.
Stock Price Impact: At the time of writing, the stock price of McDonald’s was up 0.2% during pre-market trading hours following the earnings release.
Check back later for our full write up on this MCD earnings report!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>