Fast-food chain McDonald’s (NYSE:MCD) will be reporting results this Thursday before the bell. Here’s what investors should know.
McDonald's beat analysts’ revenue expectations last quarter, reporting revenues of $7.01 billion, up 9.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ revenue estimates.
Is McDonald's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting McDonald’s revenue to grow 8.6% year on year, a reversal from the 3.5% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. McDonald's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at McDonald’s peers in the traditional fast food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Starbucks delivered year-on-year revenue growth of 8.8%, beating analysts’ expectations by 4.3%, and Yum! Brands reported revenues up 15.2%, topping estimates by 0.6%. Starbucks traded up 8.4% following the results while Yum! Brands was also up 2%.
Read our full analysis of Starbucks’s results here and Yum! Brands’s results here.
Investors in the traditional fast food segment have had steady hands going into earnings, with share prices flat over the last month. McDonald's is down 7.7% during the same time and is heading into earnings with an average analyst price target of $344.55 (compared to the current share price of $285.94).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.