McDonald's (MCD) Stock Drops Despite Market Gains: Important Facts to Note

Company Performance - McDonald's stock closed at $251.53, reflecting a -0.93% change compared to the previous day, underperforming the S&P 500's gain of 0.28% [1] - Over the last month, McDonald's shares increased by 0.13%, lagging behind the Retail-Wholesale sector's gain of 1.3% and the S&P 500's gain of 3.78% [1] - The upcoming earnings report is scheduled for July 29, 2024, with projected earnings per share (EPS) of$ 3.10, a decrease of 2.21% year-over-year, and expected quarterly revenue of $6.68 billion, an increase of 2.83% from the previous year [1] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates project earnings of$ 12.17 per share and revenue of $26.6 billion, representing increases of +1.93% and +4.32% respectively from the prior year [2] - Recent changes to analyst estimates indicate a positive outlook for the company's business, with estimate revisions correlated with near-term share price momentum [2] Valuation Metrics - McDonald's has a Forward P/E ratio of 20.86, which is a premium compared to the industry's average Forward P/E of 18.8 [3] - The company has a PEG ratio of 2.86, compared to the Retail - Restaurants industry's average PEG ratio of 1.84 [3] Industry Ranking - The Retail - Restaurants industry ranks in the top 43% of all industries, with a current Zacks Industry Rank of 108 [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]