Mcdonald’s Corp (MCD) Expected to Post Quarterly Sales of $5.16 Billion

Equities analysts expect Mcdonald’s Corp (NYSE:MCD) to announce sales of $5.16 billion for the current fiscal quarter, according to Zacks. Ten analysts have made estimates for Mcdonald’s’ earnings, with the lowest sales estimate coming in at $5.08 billion and the highest estimate coming in at $5.28 billion. Mcdonald’s reported sales of $5.34 billion in the same quarter last year, which indicates a negative year-over-year growth rate of 3.4%. The business is scheduled to announce its next earnings report on Tuesday, January 29th.

According to Zacks, analysts expect that Mcdonald’s will report full-year sales of $21.02 billion for the current year, with estimates ranging from $20.81 billion to $21.15 billion. For the next year, analysts expect that the business will report sales of $20.85 billion, with estimates ranging from $20.33 billion to $21.23 billion. Zacks’ sales averages are a mean average based on a survey of research analysts that follow Mcdonald’s.

Mcdonald’s (NYSE:MCD) last announced its quarterly earnings results on Tuesday, October 23rd. The fast-food giant reported $2.10 earnings per share for the quarter, topping analysts’ consensus estimates of $1.99 by $0.11. Mcdonald’s had a net margin of 24.56% and a negative return on equity of 130.19%. The firm had revenue of $5.37 billion during the quarter, compared to analysts’ expectations of $5.28 billion. During the same period in the prior year, the company earned $1.76 EPS. The firm’s revenue was down 6.7% on a year-over-year basis.



A number of analysts recently weighed in on the stock. Goldman Sachs Group upped their price target on shares of Mcdonald’s from $179.00 to $190.00 and gave the stock a “buy” rating in a research report on Tuesday, September 11th. Royal Bank of Canada set a $190.00 price target on shares of Mcdonald’s and gave the stock a “buy” rating in a research report on Wednesday. Gordon Haskett assumed coverage on shares of Mcdonald’s in a research report on Thursday, October 18th. They set a “buy” rating and a $185.00 price target for the company. SunTrust Banks upped their price target on shares of Mcdonald’s to $200.00 and gave the stock a “buy” rating in a research report on Wednesday. Finally, Imperial Capital decreased their price target on shares of Mcdonald’s from $190.00 to $175.00 and set an “outperform” rating for the company in a research report on Friday, July 27th. Seven equities research analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the stock. Mcdonald’s has a consensus rating of “Buy” and an average target price of $188.31.

Mcdonald’s stock traded down $1.97 during trading on Friday, reaching $173.34. 4,741,704 shares of the company’s stock were exchanged, compared to its average volume of 4,462,464. Mcdonald’s has a 52-week low of $146.84 and a 52-week high of $178.70. The stock has a market cap of $136.01 billion, a price-to-earnings ratio of 26.03, a price-to-earnings-growth ratio of 2.57 and a beta of 0.66.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 17th. Shareholders of record on Monday, December 3rd will be given a $1.16 dividend. This is a boost from Mcdonald’s’s previous quarterly dividend of $1.01. This represents a $4.64 dividend on an annualized basis and a yield of 2.68%. The ex-dividend date is Friday, November 30th. Mcdonald’s’s dividend payout ratio is presently 60.66%.

In other news, EVP Francesca A. Debiase sold 15,136 shares of the stock in a transaction dated Wednesday, October 24th. The shares were sold at an average price of $176.17, for a total transaction of $2,666,509.12. Following the transaction, the executive vice president now owns 17,306 shares of the company’s stock, valued at $3,048,798.02. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Ian Frederick Borden sold 4,782 shares of the stock in a transaction dated Thursday, October 25th. The stock was sold at an average price of $177.68, for a total transaction of $849,665.76. The disclosure for this sale can be found here. Over the last three months, insiders sold 221,041 shares of company stock valued at $38,839,407. 0.22% of the stock is currently owned by corporate insiders.

Hedge funds have recently modified their holdings of the company. FMR LLC raised its holdings in shares of Mcdonald’s by 5.5% during the 2nd quarter. FMR LLC now owns 19,483,955 shares of the fast-food giant’s stock valued at $3,052,941,000 after purchasing an additional 1,014,792 shares in the last quarter. Fundsmith Equity Fund L.P. bought a new position in Mcdonald’s in the 2nd quarter valued at approximately $1,191,239,000. Janus Henderson Group PLC raised its holdings in Mcdonald’s by 5.4% in the 2nd quarter. Janus Henderson Group PLC now owns 8,107,972 shares of the fast-food giant’s stock valued at $1,270,446,000 after buying an additional 412,750 shares during the last quarter. Magellan Asset Management Ltd raised its holdings in Mcdonald’s by 0.4% in the 2nd quarter. Magellan Asset Management Ltd now owns 5,955,794 shares of the fast-food giant’s stock valued at $933,213,000 after buying an additional 20,873 shares during the last quarter. Finally, Morgan Stanley raised its holdings in Mcdonald’s by 9.6% in the 2nd quarter. Morgan Stanley now owns 5,947,311 shares of the fast-food giant’s stock valued at $931,884,000 after buying an additional 522,333 shares during the last quarter. 66.94% of the stock is currently owned by institutional investors and hedge funds.

Mcdonald’s Company Profile

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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