Analysts Expect McDonald’s (MCD) Will Post Quarterly Sales of $5.35 Billion

Equities research analysts predict that McDonald’s (NYSE:MCD) will post sales of $5.35 billion for the current fiscal quarter, Zacks Investment Research reports. Eight analysts have made estimates for McDonald’s’ earnings, with the lowest sales estimate coming in at $5.19 billion and the highest estimate coming in at $5.54 billion. McDonald’s reported sales of $6.05 billion in the same quarter last year, which indicates a negative year over year growth rate of 11.6%. The business is expected to announce its next earnings report on Tuesday, July 24th.

On average, analysts expect that McDonald’s will report full year sales of $21.23 billion for the current year, with estimates ranging from $20.68 billion to $21.93 billion. For the next fiscal year, analysts anticipate that the business will post sales of $21.25 billion per share, with estimates ranging from $19.83 billion to $22.30 billion. Zacks Investment Research’s sales calculations are an average based on a survey of research firms that follow McDonald’s.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Monday, April 30th. The fast-food giant reported $1.79 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.67 by $0.12. The company had revenue of $5.14 billion during the quarter, compared to analyst estimates of $4.97 billion. McDonald’s had a net margin of 24.02% and a negative return on equity of 167.80%. The company’s revenue was down 9.5% on a year-over-year basis. During the same quarter last year, the business posted $1.47 earnings per share.

Several analysts have recently weighed in on the stock. Stifel Nicolaus raised their price objective on shares of McDonald’s from $165.00 to $168.00 and gave the stock a “hold” rating in a report on Tuesday, May 1st. JPMorgan Chase reaffirmed a “buy” rating and set a $182.00 price objective on shares of McDonald’s in a report on Monday, March 12th. Piper Jaffray set a $185.00 price objective on shares of McDonald’s and gave the stock a “buy” rating in a report on Tuesday, April 10th. Barclays dropped their price objective on shares of McDonald’s from $205.00 to $200.00 and set an “overweight” rating for the company in a report on Wednesday, January 31st. Finally, Credit Suisse Group reaffirmed an “outperform” rating and set a $191.00 price objective (up previously from $185.00) on shares of McDonald’s in a report on Tuesday, January 23rd. Nine research analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company’s stock. McDonald’s presently has a consensus rating of “Buy” and a consensus price target of $184.03.

McDonald’s opened at $161.31 on Friday, according to Marketbeat Ratings. The company has a market cap of $128.03 billion, a PE ratio of 24.22, a PEG ratio of 2.40 and a beta of 0.63. The company has a debt-to-equity ratio of -6.54, a current ratio of 1.74 and a quick ratio of 1.72. McDonald’s has a 1-year low of $162.00 and a 1-year high of $163.94.

In other McDonald’s news, insider Douglas M. Goare sold 13,255 shares of McDonald’s stock in a transaction on Tuesday, May 1st. The shares were sold at an average price of $165.40, for a total transaction of $2,192,377.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Kevin M. Ozan sold 18,636 shares of McDonald’s stock in a transaction on Tuesday, May 1st. The stock was sold at an average price of $165.69, for a total transaction of $3,087,798.84. Following the sale, the executive vice president now directly owns 29,800 shares of the company’s stock, valued at approximately $4,937,562. The disclosure for this sale can be found here. 0.22% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MCD. BlackRock Inc. boosted its position in shares of McDonald’s by 0.9% during the fourth quarter. BlackRock Inc. now owns 55,535,177 shares of the fast-food giant’s stock worth $9,558,713,000 after purchasing an additional 481,739 shares in the last quarter. Jennison Associates LLC boosted its position in shares of McDonald’s by 26.5% during the fourth quarter. Jennison Associates LLC now owns 8,820,228 shares of the fast-food giant’s stock worth $1,518,138,000 after purchasing an additional 1,848,111 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of McDonald’s by 3.4% during the fourth quarter. Geode Capital Management LLC now owns 8,191,870 shares of the fast-food giant’s stock worth $1,406,932,000 after purchasing an additional 270,898 shares in the last quarter. Magellan Asset Management Ltd boosted its position in shares of McDonald’s by 2.0% during the fourth quarter. Magellan Asset Management Ltd now owns 7,248,352 shares of the fast-food giant’s stock worth $1,247,586,000 after purchasing an additional 139,991 shares in the last quarter. Finally, Janus Henderson Group PLC boosted its position in shares of McDonald’s by 31.2% during the third quarter. Janus Henderson Group PLC now owns 5,802,160 shares of the fast-food giant’s stock worth $909,044,000 after purchasing an additional 1,379,737 shares in the last quarter. 67.90% of the stock is owned by hedge funds and other institutional investors.

About McDonald’s

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu. As of December 31, 2017, the company operated 37,241 restaurants, including 34,108 franchised restaurants comprising 21,366 franchised to conventional franchisees, 6,945 licensed to developmental licensees, and 5,797 licensed to foreign affiliates; and 3,133 company-operated restaurants.

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Earnings History and Estimates for McDonald`s (NYSE:MCD)

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