McDonald's (MCD) Stock Dips While Market Gains: Key Facts

In the latest market close, McDonald's (MCD) reached $276.75, with a -0.05% movement compared to the previous day. This change lagged the S&P 500's 0.02% gain on the day. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.1%.

Heading into today, shares of the world's biggest hamburger chain had lost 0.62% over the past month, outpacing the Retail-Wholesale sector's loss of 2.56% and the S&P 500's loss of 3.01% in that time.

Market participants will be closely following the financial results of McDonald's in its upcoming release. The company plans to announce its earnings on April 30, 2024. On that day, McDonald's is projected to report earnings of $2.70 per share, which would represent year-over-year growth of 2.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.17 billion, up 4.68% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.34 per share and revenue of $26.92 billion, which would represent changes of +3.35% and +5.59%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% lower. McDonald's currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, McDonald's is holding a Forward P/E ratio of 22.44. This represents a premium compared to its industry's average Forward P/E of 21.97.

Meanwhile, MCD's PEG ratio is currently 3.02. 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. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.95.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 159, this industry ranks in the bottom 37% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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