In the latest trading session, McDonald's (MCD) closed at $186.68, marking a -0.49% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.66%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 3.03%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 12.46% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.97% and the S&P 500's loss of 2.43% in that time.
Wall Street will be looking for positivity from MCD as it approaches its next earnings report date. This is expected to be January 29, 2019. In that report, analysts expect MCD to post earnings of $1.89 per share. This would mark year-over-year growth of 10.53%. Meanwhile, our latest consensus estimate is calling for revenue of $5.16 billion, down 3.39% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.76 per share and revenue of $21.03 billion. These totals would mark changes of +16.52% and -7.86%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MCD. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.52% higher. MCD currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, MCD is holding a Forward P/E ratio of 24.18. This valuation marks a premium compared to its industry's average Forward P/E of 24.11.
Meanwhile, MCD's PEG ratio is currently 2.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.