McDonald's Earnings Preview: Analysts Expect Rising Revenue

Get ready for McDonald's MCD earnings! Don't be the last to know: The company announces its next round of earnings this Friday, July 22, 2011.

Want to know what analysts are expecting to see in McDonald's' lastest earnings numbers? We thought so. Here's an advanced look at the company's second quarter earnings report.

Let's Do the Numbers:

Analysts are looking ahead to a positive EPS reading of $1.28 per share and revenues of $6.63 billion. Can McDonald's manage the estimated rise in EPS as analysts are predicting? We'll have to wait until Friday to find out.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 Q4 Q3 Q2
EPS Estimate $1.14 $1.16 $1.24 $1.12
EPS Actual $1.15 $1.15 $1.29 $1.13

Stock Performance:

At last check, shares of McDonald's were trading at $85.40. Since January 1st, shares of McDonald's have given investors a return of 13%. For a full 12 months, the return has risen by 15.8%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
  • Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for McDonald's is a Moderate Buy. The strength of this rating has crept upwards over the past three months.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of McDonald's' peers.
  • Chipotle Mexican Grill CMG: Hold with a $1.46 recent quarter EPS
  • Jack in the Box JACK: Hold with a $0.13 recent quarter EPS
  • Starbucks SBUX: Moderate Buy with a $0.34 recent quarter EPS
  • Wendy's/Arby's Group WEN: Hold with a $0.01 recent quarter EPS

The retail-restaurants company's industry has seen price/earnings growth of 1.4% during the current fiscal year.

Finally, a description of the main business areas of the company, in case you need a little refresher: McDonald's Corp. franchises and operates fast food restaurants worldwide.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming McDonald's earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

  • To see up-to-date news on McDonald's, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here
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