Fast-food chain McDonald’s (NYSE: MCD) will be reporting earnings this Wednesday after market close. Here’s what investors should know.
McDonald's met analysts’ revenue expectations last quarter, reporting revenues of $7.08 billion, up 3% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS 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, analysts are expecting McDonald’s revenue to grow 6.9% year on year to $6.83 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $3.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. McDonald's has missed Wall Street’s revenue estimates five times over the last two years.
Looking at McDonald’s peers in the traditional fast food segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Yum China delivered year-on-year revenue growth of 8.8%, beating analysts’ expectations by 3.9%, and Yum! Brands reported revenues up 6.4%, topping estimates by 2.7%. Yum China traded up 9.7% following the results while Yum! Brands was also up 1.5%.
Read our full analysis of Yum China’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 up 6% during the same time and is heading into earnings with an average analyst price target of $335.63 (compared to the current share price of $325.25).
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