McDonald’s Corp. (MCD) 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. However, the company has been the talk of the town over the past few months for some reasons.
This hamburger giant is witnessing weak comps over the past few months owing to some issues in all the regions it operates. However, one cannot deny the fact that the company is working hard with its sales initiatives to overcome these troubles and boost comps at its outlets.
Investors should also note the recent earnings estimate revisions for MCD, as the consensus estimate has been mostly moving downwards. Moreover, MCD's earnings have been comparatively weak over the past few quarters. McDonald’s has delivered negative earnings in two of the trailing four quarters while negative revenues surprises for four quarters in a row, making for an average earnings surprise of 1.99% and average revenue surprise of negative 1.5%.
Currently, MCD has a Zacks Rank #3 (Hold) but that could definitely change following McDonald’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: MCD beat on earnings. Our consensus earnings estimate called for EPS of $1.20 per share, and the company reported EPS of $1.22 cents instead. Investors should note that these figures take out stock option expenses.
Revenues: MCD reported revenues of $6.57 billion. This missed our consensus estimate of 6.72 billion.
Key Stats to Note: Global comps for the fourth quarter declined 0.9% year over year with none of the regions posting positive comps.
Stock Price: MCD shares were down almost 0.1% ahead of the report, but are up nearly 1.5% now following the release.
Check back later for our full write up on this MCD earnings report later!
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