McDonald’s (NYSE: $MCD) Stock

McDonald’s Corporation (NYSE: $MCD) operates and franchises McDonald’s restaurants globally. These restaurants serve locally relevant foods and beverages. In 2022, the company’s revenue was $23.18 billion, a drop of -0.17% from the $23.22 billion from the previous year. Despite this drop, analysts have given MCD Stock a Strong Buy rating.

McDonald’s Earnings Report

In its most recent earnings report for fiscal Q2 2023, the company reported an EPS of $3.17 per MCD share. This was better than the analysts’ estimate of $2.79, which was a 13.66% surprise. Over the past four quarters, MCD stock has consistently beaten analysts’ EPS estimates. Revenues were also better than the expected $6.27 billion at $6.5 billion.

Its net income for Q2 was $2.31 billion, $3.15 per share, up from $1.19 billion, $1.60 per share in the previous year. Net sales rose by 14%, and its global same-store sales increased by 11.7%, better than the analysts’ prediction of 9.2%. All of its divisions reported double-digit growth for its same-store sales. The company attributed an increase in sales to its marketing efforts, including the Grimace Birthday Meal, launched in the last weeks of Q2.

Recent Market Performance

In the most recent trading session, the company’s stock slid 0.24% to close at $250.92 on Wednesday, October 12, 2023. The stock underperformed the market, breaking a two-day streak that had seen the stock perform better than the market. On the same day the stock slid, the S&P 500 rose 0.43%, and the DJIA rose 0.19%.

On Wednesday’s close, McDonald’s Stock was $48.43 below its 52-week high of $299.35, which it reached on July 21, 2023. Despite the slide, MCD Stock did much better than the competition, including Chipotle, Starbucks, and Yum! Brands Inc. Trading volume remained high on Wednesday at 2.9 million, higher than its 50-day average volume of 2.6 million.

McDonald’s Future Performance

The company will release its next quarterly report on October 30, 2023. Thus far, its share price has dropped 10.4% in the past month, which is lower than its sector’s drop of 4.9% and the 2.1% slide of S&P 500 in the same period.

Investors will be closely monitoring the upcoming earnings report. Analysts predict an EPS of $2.99, an 11.57% increase from last year’s same quarter. They also expect revenue of $6.57 billion, an 11.84% increase from last year.

For the full fiscal year, analysts predict an EPS of $11.52 and revenue of $25.46 billion, indicating a 14.06% and 9.83% increase from the previous year, respectively.

MCD Stock Forecast

The 12-month forecast for McDonald’s stock is a high of $383, a median target of $330, and a low of $283. Based on its most recent closing price, the high estimate would be a 52.7% upside, while the median price would be a 31.53% upside.

MCD Stock Is a worthwhile Investment

Thus far, analysts are giving McDonald’s stock (MCD) a strong buy recommendation, with an upside estimate of around 30%. It is an excellent stock to buy, especially for those new to the stock market.

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