Research Analysts Offer Predictions for McDonald’s Co.’s Q1 2024 Earnings (NYSE:MCD)

McDonald’s Co. (NYSE:MCD) – Equities researchers at Zacks Research cut their Q1 2024 earnings per share (EPS) estimates for shares of McDonald’s in a research note issued to investors on Tuesday, April 16th. Zacks Research analyst H. Ray now forecasts that the fast-food giant will post earnings of $2.71 per share for the quarter, down from their previous forecast of $2.72. The consensus estimate for McDonald’s’ current full-year earnings is $12.35 per share. Zacks Research also issued estimates for McDonald’s’ Q4 2024 earnings at $3.04 EPS, Q1 2026 earnings at $3.30 EPS and FY2026 earnings at $14.91 EPS.

McDonald’s (NYSE:MCD) last posted its quarterly earnings results on Monday, February 5th. The fast-food giant reported $2.95 EPS for the quarter, topping the consensus estimate of $2.83 by $0.12. McDonald’s had a negative return on equity of 171.96% and a net margin of 33.22%. The business had revenue of $6.41 billion for the quarter, compared to analyst estimates of $6.45 billion. During the same quarter in the previous year, the firm earned $2.59 EPS. The company’s quarterly revenue was up 8.1% compared to the same quarter last year.

A number of other analysts also recently issued reports on MCD. Royal Bank of Canada cut their price objective on McDonald’s from $340.00 to $335.00 and set an “outperform” rating for the company in a research report on Tuesday, February 6th. Erste Group Bank reaffirmed a “hold” rating on shares of McDonald’s in a research report on Wednesday, April 3rd. Citigroup dropped their target price on McDonald’s from $312.00 to $297.00 and set a “neutral” rating for the company in a research report on Tuesday. HSBC started coverage on McDonald’s in a research report on Wednesday, December 20th. They issued a “buy” rating and a $317.00 target price for the company. Finally, Robert W. Baird reaffirmed an “outperform” rating and issued a $315.00 target price on shares of McDonald’s in a research report on Tuesday, February 6th. Nine analysts have rated the stock with a hold rating and twenty-two have issued a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $319.72.

McDonald’s Stock Up 1.7 %

NYSE MCD opened at $269.95 on Wednesday. The business’s fifty day simple moving average is $283.86 and its 200-day simple moving average is $280.69. The firm has a market cap of $194.64 billion, a PE ratio of 23.33, a P/E/G ratio of 2.88 and a beta of 0.71. McDonald’s has a 52 week low of $245.73 and a 52 week high of $302.39.

Institutional Investors Weigh In On McDonald’s

Several large investors have recently modified their holdings of the stock. D.B. Root & Company LLC raised its stake in shares of McDonald’s by 5.4% during the first quarter. D.B. Root & Company LLC now owns 6,014 shares of the fast-food giant’s stock worth $1,696,000 after purchasing an additional 310 shares during the last quarter. Trilogy Capital Inc. raised its position in McDonald’s by 133.8% in the first quarter. Trilogy Capital Inc. now owns 1,665 shares of the fast-food giant’s stock worth $469,000 after acquiring an additional 953 shares in the last quarter. Cornerstone Wealth Group LLC raised its position in McDonald’s by 59.0% in the first quarter. Cornerstone Wealth Group LLC now owns 31,153 shares of the fast-food giant’s stock worth $8,784,000 after acquiring an additional 11,554 shares in the last quarter. River Street Advisors LLC raised its position in McDonald’s by 4.4% in the first quarter. River Street Advisors LLC now owns 4,000 shares of the fast-food giant’s stock worth $1,128,000 after acquiring an additional 169 shares in the last quarter. Finally, Physician Wealth Advisors Inc. raised its position in McDonald’s by 8.8% in the first quarter. Physician Wealth Advisors Inc. now owns 1,750 shares of the fast-food giant’s stock worth $465,000 after acquiring an additional 141 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Insider Activity

In other news, insider Joseph M. Erlinger sold 1,099 shares of the stock in a transaction that occurred on Friday, March 22nd. The stock was sold at an average price of $284.38, for a total value of $312,533.62. Following the completion of the sale, the insider now directly owns 18,075 shares of the company’s stock, valued at $5,140,168.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.18% of the company’s stock.

McDonald’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 15th. Shareholders of record on Friday, March 1st were paid a $1.67 dividend. This represents a $6.68 dividend on an annualized basis and a yield of 2.47%. The ex-dividend date of this dividend was Thursday, February 29th. McDonald’s’s dividend payout ratio is currently 57.74%.

About McDonald’s

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.