Earnings To Watch: McDonald's (MCD) Reports Q4 Results

Radek Strnad /
2024/02/04 2:01 am EST

Fast-food chain McDonald’s (NYSE:MCD) will be reporting results today before the bell. Here's what you need to know.

Last quarter McDonald's reported revenues of $6.69 billion, up 14% year on year, beating analyst revenue expectations by 2.2%. It was an impressive quarter for the company, with a decent beat of analysts' revenue and EPS estimates.

Is McDonald's buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting McDonald's's revenue to grow 8.9% year on year to $6.45 billion, improving on the 1.4% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.83 per share.

McDonald's Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing ten upward and four downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at McDonald's's peers in the restaurants segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Starbucks delivered top-line growth of 8.2% year on year, missing analyst estimates by 2.1% and Brinker International reported revenues up 5.4% year on year, missing analyst estimates by 0.4%. Starbucks traded up 2.3% on the results, and Brinker International was flat on the results.

Read our full analysis of Starbucks's results here and Brinker International's results here.

Investors in the restaurants segment have had steady hands going into the earnings, with the stocks up on average 1.7% over the last month. McDonald's is up 2.3% during the same time, and is heading into the earnings with analyst price target of $324.5, compared to share price of $298.5.

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The author has no position in any of the stocks mentioned.