Zacks: Analysts Anticipate Mcdonald’s Corp (NYSE:MCD) to Announce $2.22 EPS

Brokerages expect Mcdonald’s Corp (NYSE:MCD) to post $2.22 earnings per share (EPS) for the current fiscal quarter, according to Zacks. Nine analysts have provided estimates for Mcdonald’s’ earnings, with the lowest EPS estimate coming in at $2.18 and the highest estimate coming in at $2.26. Mcdonald’s posted earnings per share of $2.10 during the same quarter last year, which would indicate a positive year-over-year growth rate of 5.7%. The business is expected to issue its next quarterly earnings results on Tuesday, October 22nd.

According to Zacks, analysts expect that Mcdonald’s will report full year earnings of $8.01 per share for the current financial year, with EPS estimates ranging from $7.92 to $8.07. For the next fiscal year, analysts expect that the business will post earnings of $8.77 per share, with EPS estimates ranging from $8.60 to $8.90. Zacks’ EPS averages are an average based on a survey of sell-side research firms that follow Mcdonald’s.

Mcdonald’s (NYSE:MCD) last released its earnings results on Friday, July 26th. The fast-food giant reported $2.05 earnings per share for the quarter, missing the consensus estimate of $2.06 by ($0.01). The business had revenue of $5.34 billion for the quarter, compared to the consensus estimate of $5.34 billion. Mcdonald’s had a negative return on equity of 92.02% and a net margin of 28.32%. The firm’s revenue for the quarter was down .2% compared to the same quarter last year. During the same quarter last year, the business posted $1.99 earnings per share.

MCD has been the subject of a number of research analyst reports. Morgan Stanley lifted their price objective on shares of Mcdonald’s from $210.00 to $220.00 and gave the company an “overweight” rating in a report on Thursday, July 18th. MKM Partners started coverage on shares of Mcdonald’s in a research note on Tuesday, August 13th. They issued a “buy” rating and a $250.00 target price on the stock. Jefferies Financial Group raised their target price on shares of Mcdonald’s from $225.00 to $230.00 and gave the stock a “buy” rating in a research report on Friday, June 28th. Robert W. Baird boosted their price target on Mcdonald’s from $225.00 to $230.00 and gave the company an “outperform” rating in a report on Monday, July 29th. Finally, BMO Capital Markets increased their price objective on Mcdonald’s to $230.00 and gave the stock an “outperform” rating in a research note on Monday, July 29th. Eight equities research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the stock. The stock has a consensus rating of “Buy” and an average price target of $220.55.

Shares of NYSE MCD traded up $0.52 during mid-day trading on Friday, reaching $210.20. The company had a trading volume of 3,297,433 shares, compared to its average volume of 3,093,303. The stock has a market cap of $159.20 billion, a price-to-earnings ratio of 26.61, a price-to-earnings-growth ratio of 3.22 and a beta of 0.49. Mcdonald’s has a 52 week low of $156.56 and a 52 week high of $221.93. The business’s 50-day moving average is $216.70 and its 200-day moving average is $201.97.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 17th. Stockholders of record on Tuesday, September 3rd will be paid a $1.16 dividend. This represents a $4.64 annualized dividend and a dividend yield of 2.21%. The ex-dividend date of this dividend is Friday, August 30th. Mcdonald’s’s payout ratio is 58.73%.

In related news, EVP Silvia Lagnado sold 26,649 shares of the firm’s stock in a transaction on Thursday, August 1st. The shares were sold at an average price of $212.58, for a total transaction of $5,665,044.42. Following the completion of the transaction, the executive vice president now owns 40,129 shares of the company’s stock, valued at $8,530,622.82. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Catherine A. Hoovel sold 457 shares of the firm’s stock in a transaction on Friday, August 16th. The stock was sold at an average price of $218.15, for a total transaction of $99,694.55. Following the transaction, the vice president now directly owns 1,348 shares of the company’s stock, valued at approximately $294,066.20. The disclosure for this sale can be found here. Company insiders own 0.25% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of MCD. Salomon & Ludwin LLC lifted its position in Mcdonald’s by 3.7% in the second quarter. Salomon & Ludwin LLC now owns 1,280 shares of the fast-food giant’s stock valued at $266,000 after acquiring an additional 46 shares during the last quarter. First Command Financial Services Inc. boosted its position in shares of Mcdonald’s by 2.7% in the 2nd quarter. First Command Financial Services Inc. now owns 1,857 shares of the fast-food giant’s stock valued at $386,000 after purchasing an additional 48 shares during the period. Graves Light Private Wealth Management Inc. boosted its position in shares of Mcdonald’s by 1.5% in the 2nd quarter. Graves Light Private Wealth Management Inc. now owns 3,428 shares of the fast-food giant’s stock valued at $712,000 after purchasing an additional 49 shares during the period. Gilman Hill Asset Management LLC grew its stake in Mcdonald’s by 2.2% during the 2nd quarter. Gilman Hill Asset Management LLC now owns 2,344 shares of the fast-food giant’s stock worth $487,000 after buying an additional 50 shares during the last quarter. Finally, Duncker Streett & Co. Inc. grew its stake in Mcdonald’s by 1.9% during the 2nd quarter. Duncker Streett & Co. Inc. now owns 2,698 shares of the fast-food giant’s stock worth $560,000 after buying an additional 50 shares during the last quarter. Hedge funds and other institutional investors own 67.70% of the company’s stock.

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, 2018, the company operated 37,855 restaurants, including 35,085 franchised restaurants comprising 21,685 franchised to conventional franchisees, 7,225 licensed to developmental licensees, and 6,175 licensed to foreign affiliates; and 2,770 company-operated restaurants.

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

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