In the latest trading session, McDonald’s (MCD) closed at $270.67, marking a +2.23% move from the previous day. The stock’s change was more than the S&P 500’s daily gain of 0.02%. On the other hand, the Dow registered a gain of 0.51%, and the technology-centric Nasdaq decreased by 0.18%.
The world’s biggest hamburger chain’s shares have seen a decrease of 1.85% over the last month, not keeping up with the Retail-Wholesale sector’s loss of 1.33% and the S&P 500’s gain of 0.77%.
The investment community will be paying close attention to the earnings performance of McDonald’s in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. The company is predicted to post an EPS of $3.32, indicating a 4.08% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.14 billion, indicating a 4.27% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.86 per share and revenue of $28.34 billion, indicating changes of +5.41% and +5.42%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for McDonald’s. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.51% lower. McDonald’s presently features a Zacks Rank of #4 (Sell).
In terms of valuation, McDonald’s is presently being traded at a Forward P/E ratio of 20.59. For comparison, its industry has an average Forward P/E of 20.28, which means McDonald’s is trading at a premium to the group.
We can also see that MCD currently has a PEG ratio of 2.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The average PEG ratio for the Retail – Restaurants industry stood at 1.95 at the close of the market yesterday.
