McDonald’s (NYSE:MCD)
On Thursday, October 27, before the opening bell, McDonald’s (NYSE:MCD) will announce the results. Analysts predict the fast food giant to post $5.70 billion in sales and $2.58 per share in profits. Predictions for the fast food giant’s worldwide same-store sales growth are 5.7%, with the United States contributing 3.8%. As a result, McDonald’s stock surged.
Over the last 90 days, 21 EPS adjustments have been made downward due to the inflationary environment and FX worries. Only three have been made upward. It’s important to remember that McDonald’s has also fallen short of analysts’ quarterly EPS estimates for the last three periods.
To consider FX volatility, Guggenheim reduced its McDonald’s stock price target to $280.00 before the report was released from $290.00. The company, though, is pleased with MCD’s overall performance. According to analyst Gregory Francfort, “We anticipate that industry margin and store development challenges give MCD a competitive chance to gain share.” The company has maintained its Buy rating on McDonald’s stock and labeled the fast food giant as a Best Idea.
Meanwhile, Citi recently warned that McDonald’s stock might miss expectations in Europe owing to inflation pressure on customers.
Suppose the McDonald’s report (MCD) needs a spark. In that case, it may come during the conference call when management discusses the enthusiastic customer reaction to recent menu changes, including the adult Happy Meal menu effort, the Halloween Happy Meal menu, and the reintroduction of the McRib. Some believe that combining these three elements in the menu will lead to optimistic assessments of the chain’s Q4 business as a whole. Keep an eye on Beyond Meat (BYND) and Krispy Kreme (DNUT) for updates on the status of their menu testing at McDonald’s.
Out of 55 publicly listed restaurant companies, McDonald’s stock had the sixth greatest share price return over the last 52 weeks.
Meta Description
In McDonald’s forthcoming earnings report, inflation backlash, menu initiatives, and foreign exchange will be critical factors.
Featured Image – Megapixl © Slavson
Author Shariq Khan 
