McDonald's Earnings Preview: Analysts Expect Higher EPS, Revenue

McDonald's MCD announces its next round of earnings this Friday, October 21, 2011. Get prepared with Benzinga's ultimate preview for McDonald's' third quarter earnings.

Earnings and Revenue:

Analysts are predicting an EPS reading of $1.43/share and revenues of $7.01 billion. McDonald's' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.29/share on revenues of $6.3 billion. Can McDonald's manage the estimated 10.9% rise in EPS and 11.3% increase in revenues from the year-ago quarter 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	Q2	Q1	Q4	Q3
EPS Estimate	$1.28	$1.14	$1.16	$1.24
EPS Actual	$1.35	$1.15	$1.15	$1.29

Stock Performance:

As of October 17, 2011, McDonald's' current share price was $88.66. Shares are up 18.1% year to date. For a full 12 months, the return has risen by 19.6%. 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 declined slightly over the past three months.

Competitors:

Want to check out the performance of McDonald's closest competitors? Take a look at some of the company's peers in the consumer discretionary sector.

• Chipotle Mexican Grill CMG: Hold with a $1.59 recent quarter EPS
• Jack in the Box JACK: Hold with a $0.38 recent quarter EPS
• Starbucks SBUX: Moderate Buy with a $0.36 recent quarter EPS

The retail-restaurants company's industry has seen price/earnings growth of 1.2% during the current fiscal year.

Finally, a description of the company's main areas of operation: McDonald's franchises and operates fast food restaurants worldwide.

Take Action:

That's your advanced look at McDonald's' upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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