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 of late been the talk of the town 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.
Beginning Jul 1, 2015, the company began operating under four new segments. These new segments are: U.S. – the company's largest segment, International Lead Markets – mature markets which include Australia, Canada, France, Germany and the UK; High-Growth Markets – markets with high restaurant expansion and franchising potential including China, Italy, Poland, Russia, South Korea, Spain, Switzerland and the Netherlands, and Foundational Markets – the remaining markets in McDonald's system, each of which has the potential to operate under a substantially franchised model.
Analysts have been cautiously optimistic in the recent months about the company’s earnings and kept their estimates almost unchanged over the last 30 days. MCD’s earnings have been strong over the past few quarters. McDonald’s has delivered positive earnings surprises in all the trailing four quarters and has an average positive earnings surprise of 4.96%. Meanwhile, revenues have posted negative surprises in three of the trailing four quarters.
Currently, MCD has a Zacks Rank #3 (Hold) but that could 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 beats on earnings. Our consensus earnings estimate called for EPS of $1.27 per share, and the company reported earnings per share of $1.40 per share.
Revenues: MCD reported revenues of $6.62 billion. This beat our consensus estimate of 6.44 billion.
Key Stats to Note: Global comps for the third quarter grew 4% that compared favorably to 0.7% decline in the prior quarter. The company had expected positive comps for the third quarter during second quarter earnings call. All the segments posted positive comps. However, foreign currency translation hurt profits.
Check back later for our full write up on this MCD earnings report later!
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