Fast-food chain McDonald’s (NYSE:MCD) will be reporting results. Here's what to expect.
Last quarter McDonald's reported revenues of $6.5 billion, up 13.6% year on year, beating analyst revenue expectations by 3.22%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but a miss of analysts' gross margin estimates.
Is McDonald's buy or sell heading into the earnings? Read our full analysis here.
This quarter analysts are expecting McDonald's's revenue to grow 11.6% year on year to $6.55 billion, improving on the 5.31% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.99 per share.
The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing eight upward and five 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 Q3 earnings results, giving us a hint what we can expect. Domino's's revenues decreased 3.86% year on year, missing analyst estimates by 1.99% and Darden reported revenues up 11.6% year on year, exceeding estimates by 0.83%. Domino's traded flat on the results, Darden was down 2.9%.
Tech stocks have had a rocky start in 2022 and while some of the restaurants stocks have fared somewhat better, they have not been spared, with share price declining 3.01% over the last month. McDonald's is down 0.5% during the same time, and is heading into the earnings with analyst price target of $312.3, compared to share price of $256.47.
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The author has no position in any of the stocks mentioned.