Analysts Estimate McDonald's (MCD) to Report a Decline in Earnings: What to Look Out for

Summary of McDonald's Earnings Outlook Core Viewpoint - The market anticipates a year-over-year decline in McDonald's earnings despite an increase in revenues for the quarter ended June 2024, with the actual results being crucial for stock price movement [1]. Financial Estimates - McDonald's is expected to report quarterly earnings of $3.08 per share, reflecting a year-over-year decrease of 2.8$6.66 billion, which is a 2.6% increase from the same quarter last year [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.53% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [2][5]. - The Most Accurate Estimate for McDonald's is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.28% [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the potential deviation of actual earnings from the consensus estimate, with a focus on positive readings for predictive power [3][4]. - McDonald's current Zacks Rank is 3 (Hold), which, combined with a negative Earnings ESP, complicates the prediction of an earnings beat [5][6]. Historical Performance - In the last reported quarter, McDonald's was expected to post earnings of $2.71 per share but delivered$2.70, resulting in a surprise of -0.37% [7]. - Over the past four quarters, McDonald's has beaten consensus EPS estimates three times [7]. Conclusion - While an earnings beat or miss can influence stock movement, other factors may also play a significant role in investor sentiment [8]. - McDonald's does not currently appear to be a strong candidate for an earnings beat, suggesting that investors should consider additional factors before making investment decisions [8].