In the latest close session, McDonald's (MCD) was down 1.43% at $283.82. This change lagged the S&P 500's daily loss of 1.22%. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.35%.
Shares of the world's biggest hamburger chain witnessed a gain of 2.54% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 2.86%, and the S&P 500's gain of 1.56%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.34, reflecting a 4.7% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.15 billion, indicating a 4.53% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.93 per share and revenue of $28.42 billion. These totals would mark changes of +5.98% and +5.71%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. As of now, McDonald's holds a Zacks Rank of #4 (Sell).
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 22.27. This expresses a premium compared to the average Forward P/E of 19.48 of its industry.
Meanwhile, MCD's PEG ratio is currently 2.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.84.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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McDonald's Corporation (MCD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).