Yahoo Finance McDonald's (MCD) to Post Q4 Earnings: What's in the Offing?
McDonald's Corporation MCD is scheduled to report fourth-quarter 2022 results on Jan 31, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4.3%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.45 per share, indicating growth of 9.9% from $2.23 per share reported in the year-ago quarter. For revenues, the Zacks Consensus Estimate is pegged at $5,713 million, suggesting a deterioration of 4.9% from the year-ago quarter’s figure.
Let's take a look at how things have shaped up in the quarter.
Factors at Play
MCD's fourth-quarter top line is likely to have negatively impacted by decline in international operated markets revenues. The company’s performance in China is likely to have affected by softening economy and COVID-19-related restrictions. We expect total international operated markets revenues in fourth-quarter 2022 to be down nearly 31.5%, year over year.
However, robust performance of the U.S. segment is likely to have boosted the top line. We expect total U.S. segment revenues in fourth-quarter 2022 to be up nearly 3%, year over year.
Robust comps growth is likely to drive the company’s performance. In fourth-quarter 2022, we expect comps to improve 0.8%.
Digital efforts, strong marketing campaigns, robust drive-thru presence and expansion initiatives are likely to have aided the results. Moreover, increase in average check growth, menu price increases and compelling value programs also bode well. Over the past year, the delivery sales mix has doubled in Australia, Canada and the United States.
McDonald's Corporation Price and EPS Surprise
McDonald's Corporation price-eps-surprise | McDonald's Corporation Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for McDonald's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McDonald's has an Earnings ESP of -0.59% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these stocks have the right combination of elements to post an earnings beat in the quarter to be reported:
Starbucks Corporation SBUX currently has an Earnings ESP of +2.09% and a Zacks Rank #3.
Shares of Starbucks have gained 11.5% in the past year. SBUX’s has a trailing four-quarter earnings surprise of 2.1% on average.
Yum China Holdings, Inc. YUMC currently has an Earnings ESP of +16.13% and a Zacks Rank #3.
Shares of Yum China have increased 37% in the past year. YUMC’s has a trailing four-quarter earnings surprise of 263.4%, on average.
Shake Shack Inc. SHAK has an Earnings ESP of +11.9% and a Zacks Rank #3.
Shares of Shake Shack have declined 12.2% in the past year. SHAK’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 37.2%, on average.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
Yum China (YUMC) : Free Stock Analysis Report
