McDonald’s Corporation MCD just declared a quarterly cash dividend of $1.67 per share of common stock payable on Sept. 17 to shareholders of record on Sept. 3.With the recent buzz around the Chicago fast food chain, some investors may be eyeing potential gains from the company's dividends, too. As of now, McDonald’s offers an annual dividend yield of 2.66%. That’s a quarterly dividend amount of $1.67 per share ($6.68 a year).So, how can investors exploit its dividend yield to pocket a regular $500 monthly?T ...

Analyst Estimates for Q2 2024Q1 2024Q2 2023Revenue$6.63 billion$6.17 billion$6.5 billionDiluted EPS$3.10$2.66$3.15Net Income$2.24 billion$1.93 billion$2.31 billion Key Metric: Comparable Store Sales Comparable-store sales have slowed in recent quarters for McDonald's from double-digit increases last year. Executives have noted the impact inflation has had on many customers. In the second quarter of 2023, McDonald's reported 11.7% comparable sales growth globally, and just over 10% in the U.S. Baird analy ...

In its upcoming report, McDonald's (MCD) is predicted by Wall Street analysts to post quarterly earnings of $3.08 per share, reflecting a decline of 2.8% compared to the same period last year. Revenues are forecasted to be $6.65 billion, representing a year-over-year increase of 2.4%.The consensus EPS estimate for the quarter has undergone a downward revision of 0.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial es ...

McDonald's Corporation (MCD) is slated to release second-quarter 2024 results on Jul 29, before the opening bell.In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 0.4%. However, the company’s top and the bottom line increased 5% and 2% year over year, respectively.MCD surpassed earnings estimate in three out of the trailing four quarters. The average surprise over this period is 6.4%, as shown in the chart below.Image Source: Zacks Investment ResearchTrend in Estima ...

Core Viewpoint - McDonald's stock experienced a slight decline following a price target reduction by UBS analyst Dennis Geiger, although it remains a buy recommendation with significant upside potential [1][2]. Group 1: Analyst Insights - UBS's Dennis Geiger lowered the fair value estimation of McDonald's from $335 to $305 per share, representing a $30 haircut [2]. - Despite the price target cut, McDonald's still has an 18% upside potential based on the new target compared to its recent closing price [2]. Group 2: Company Promotions - McDonald's announced the extension of its popular $5 value meal deal, which was initially launched for a four-week period at the end of June [2][3]. - Approximately 93% of McDonald's locations have committed to extending the $5 meal deal, although the duration of the extension varies among franchisees [3]. - The extension of the value meal deal indicates that McDonald's is responsive to customer preferences, raising questions about the impact of such discounts on the company's fundamentals [3].

Group 1 - McDonald's Corp is set to release its second-quarter earnings on July 29, following a series of disappointing earnings from major tech companies [1] - Historically, McDonald's has experienced mixed reactions post-earnings, with four out of the last eight sessions showing gains, while shares fell 3.7% and 0.2% after the last two quarterly reports [1] - The stock is currently trading near its 2023 lows, with a year-to-date deficit of 15.1%, indicating a need for a positive post-earnings performance [1] Group 2 - The options market shows a bullish sentiment towards McDonald's stock, with a 50-day call/put volume ratio of 1.72, ranking in the 81st percentile of its annual range [2] - Short-term options traders are also optimistic, as indicated by the Schaeffer's put/call open interest ratio (SOIR) being in the 13% of readings from the past year [2]

Core Viewpoint - McDonald's stock is currently viewed as an opportunity below $260, with challenges in the fast food industry due to rising commodity prices and changing consumer behavior [1][2][4] Industry Overview - Commodity prices for key ingredients have surged since the pandemic, leading to increased costs for restaurant companies, which in turn have raised menu prices [2][4] - The consumer price index for food away from home has risen sharply, diverging from the more stable prices for food at home [2][3] Company Performance - McDonald's has seen a 100% increase in prices over the past decade, while actual inflation was only 31%, indicating a potential disconnect in perceived value [4] - The company has reported no revenue growth over the past 10 years, with challenges particularly noted in Arab countries [4][5] - McDonald's transitioned to a nearly wholly franchised model, with franchised restaurants now making up about 95% of the total, impacting overall sales but increasing profitability [5] Financial Metrics - Operating income for McDonald's increased by 27% over the past decade, despite a slight decrease in revenues [5] - The company aims to expand to 50,000 locations by 2027, up from over 42,000 currently, although this aggressive target may be difficult to achieve in the current environment [5][8] - McDonald's has managed to maintain a debt/EBITDA ratio below 3x, allowing for share buybacks and a 134% increase in free cash flow per share [5][6] Market Strategy - The company is promoting a $5 value meal across more than 90% of its restaurants to drive traffic, although this may negatively impact profit margins [8] - Recent earnings revisions have been predominantly downward, with 25 downward revisions and only one upward revision in the last three months [9] Future Outlook - Revenue is expected to increase by 2% to $6.63 billion, but EPS estimates show a 3.2% decrease year-over-year [9] - The company is likely to lower its guidance for the remainder of the year, increasing the risk of a post-earnings sell-off [9] - Long-term prospects remain positive, with expectations of low-double-digit returns driven by EPS growth, dividends, and buybacks, but short-term volatility is anticipated [9]

Key TakeawaysMcDonald's will extend its $5 value meal promotion, according to reports.Bloomberg and CNBC cited an internal memo that indicated the deal is bringing in customers.Most of the company's restaurants will offer the promotion for longer than the originally planned four weeks, the reports said. McDonald’s (MCD) will extend its $5 value meal promotion longer than anticipated because of solid demand, according to reports. Bloomberg reported the deal — for a sandwich, drink, french fries and chicken ...

Core Insights - McDonald's is extending its $5 Meal Deal through August, which includes a McDouble or McChicken, a four-piece nugget, a small fry, and a small fountain beverage, aimed at attracting budget-conscious customers amid ongoing inflation [1][2] - The decision to extend the offer was supported by 93% of McDonald's US restaurants, although the availability may vary by location [1] - The $5 Meal Deal has successfully increased customer visits, with a reported 8% increase on its launch day compared to the average Tuesday, and at least 5% more visits throughout the launch week [3] Company Performance - McDonald's experienced a quarterly profit miss in April, with sales growth declining for the fourth consecutive quarter to 1.90%, below analysts' expectations of 2.35% [5] - The CEO noted that consumers are becoming more selective in their spending, indicating a trend across all income levels seeking value [5] - The company is set to report its second-quarter earnings at the end of July, which will provide further insights into its financial performance [5] Competitive Landscape - The introduction of value meals and discounts by casual dining chains like Starbucks and Chili's has also positively impacted their traffic and sales [4] - McDonald's $5 Meal Deal competes directly with similar offerings from rivals such as Wendy's and Burger King, as the fast-food industry navigates challenges posed by inflationary pressures [4]

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% [2]. - Revenue projections stand at $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].