McDonald’s (MCD:NYE) is set to announce its earnings data before the opening of the market on April 25, 2023. Analysts estimate earnings per share of $2.28 for the quarter.
Previous Quarter Earnings:
The fast-food giant announced its earnings results on January 31, 2023, reporting earnings per share of $2.59 for the quarter, exceeding analysts’ expectations of $2.46 by $0.13. The business generated revenue of $5.93 billion for the quarter, surpassing analysts’ estimates of $5.75 billion.
McDonald’s recorded a negative return on equity of 120.10% and a net margin of 26.65%. The company’s quarterly revenue decreased by 1.4% compared to the same quarter of the previous year. However, in the same quarter of the prior year, the company earned $2.23 EPS. Analysts expect McDonald’s to post $11 EPS for the current fiscal year and $12 EPS for the next fiscal year, on average.
McDonald’s Stock Price Analysis:
McDonald’s shares opened at $289.31 on Tuesday, with a market capitalization of $211.63 billion, a price-to-earnings ratio of 34.65, a price-to-earnings-growth ratio of 3.41, and a beta of 0.63.
The firm’s 50-day moving average price is $271.15, and its 200-day moving average price is $266.57. Its 12-month low is $228.34, and the 12-month high is $290.51. As of the writing of this article, McDonald’s stock was up 0.1%.
According to data from Stock Target Advisor, McDonald’s has an average rating of “Buy” and an average price target of $285.80.
McDonald’s Stock Dividend:
On March 15, 2023, McDonald’s announced a quarterly dividend of $1.52, which was paid to shareholders on the same day. Shareholders of record on March 1, 2023, were eligible for the dividend. The ex-dividend date was February 28, 2023. McDonald’s’s dividend payout ratio (DPR) is currently 72.81%.
McDonald’s Stock-Analyst Ratings:
Several analysts have commented on McDonald’s, with Stephens reiterating an “overweight” rating and setting a target price of $280.00 on February 1, 2023.
On the same day, Credit Suisse Group raised McDonald’s price target from $298.00 to $300.00 and gave the stock an “outperform” rating.
On February 3, 2023, the Royal Bank of Canada decreased McDonald’s price target from $296.00 to $283.00 and issued an “outperform” rating.
JPMorgan Chase & Co. increased McDonald’s target price from $250.00 to $262.00 and gave the company an “overweight” rating on January 18, 2023.
Finally, on February 1, 2023, Morgan Stanley increased McDonald’s target price from $305.00 to $309.00 and gave the company an “overweight” rating.
Looking ahead, analysts remain bullish on McDonald’s, with many expecting the company to continue delivering strong earnings and revenue growth in the coming quarters. However, investors should be aware of potential risks and challenges facing the fast-food giant, such as rising labor costs, increased competition, and changing consumer preferences for healthier and more sustainable food options.
In conclusion, McDonald’s upcoming earnings release will be closely watched by investors and analysts alike, as they assess the company’s financial performance and future prospects. With a solid track record of delivering consistent growth and profitability, McDonald’s remains a top pick for investors seeking exposure to the fast-food industry.