It has been about a month since the last earnings report for McDonald's (MCD) . Shares have added about 8.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is McDonald's due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. McDonald's Q2 Earnings and Revenues Lag Estimate ...

With fast-food customers revolting over higher prices, chains like McDonald's, Burger King and Wendy's are bringing back the value meal.Nearly 80% of Americans said they feel fast food has become a luxury and are eating out less, according to a LendingTree survey. To try to lure them back, fast-food chains have been touting their value.It's a similar playbook to the one those chains have used in the past, and the competition has sparked what some are calling a value menu war."This has always been an industr ...

Core Insights - The Nasdaq 100 experienced a rise of over 1% during Friday's session, with investors paying attention to notable insider trades [1] Lithia Motors - Lithia Motors, Inc. Director Sidney B Deboer sold 11,938 shares at an average price of $290.86, totaling approximately $3.5 million [2] - The company reported better-than-expected second-quarter adjusted EPS results on August 1 [2] - Lithia Motors operates as a retailer of new and used vehicles and related services [2] Philip Morris International - Philip Morris International Inc. insider Frederic de Wilde sold 20,000 shares at an average price of $119.30, receiving around $2.4 million [3] - Barclays analyst Gaurav Jain maintained an Overweight rating and raised the price target from $110 to $130 on August 14 [3] - The company sells cigarettes and reduced-risk products primarily outside of the US [3] McDonald's - McDonald's Corporation President Joseph M. Erlinger sold 1,098 shares at an average price of $288.70, totaling approximately $316,993 [4] - Evercore ISI Group maintained an Outperform rating and raised the price target from $300 to $320 on August 19 [4] - McDonald's is the largest restaurant owner-operator globally, with 2023 system sales of $130 billion across nearly 42,000 stores [4] Mastercard - Mastercard Incorporated EVP Dale D Friedrichs sold 90,000 shares at an average price of $468.80, receiving around $42.2 million [5] - The company plans to reduce its global workforce by 3% [5] - Mastercard is the second-largest payment processor globally, processing over $9 trillion in volume during 2023 [5]

For years the business model worked well, but its franchisee/franchisor relationships have seemingly become lopsided.There's no denying McDonald's (MCD 0.11%) is king of the fast-food industry. Not only has the company clearly mastered the art and science of quick-service restaurants, but with more than 42,000 stores each doing on the order of $3 million in sales per year, it's also the biggest name in the business. It's made for a rewarding long-term investment as well.No great company is guaranteed to thr ...

Investors might have avoided some consumer discretionary stocks due to growing inflation concerns and rising credit card delinquency rates. When personal finance conditions become so tight, consumers tend to restrict their spending to only the necessities for everyday life, a category under which shares of McDonald’s Co. NYSE: MCD surprisingly fit.McDonald's TodayMCDMcDonald's$288.38 -1.33 (-0.46%) 52-Week Range$243.53▼$302.39Dividend Yield2.32%P/E Ratio24.48Price Target$303.71Add to WatchlistAfter briefly ...

McDonald’s reportedly suffered a hack of its Instagram account Wednesday (Aug. 21), with the hackers claiming they used the fast-food giant’s account to promote a fake cryptocurrency that they dubbed “GRIMACE” and pocket $700,000 from the scam.The hackers’ posts were later deleted, the New York Post reported Wednesday.McDonald’s did not immediately reply to PYMNTS’ request for comment, which was emailed outside business hours.In a statement provided to the New York Post, the company said it was aware of an ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about McDonald's (MCD) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.McDonald's currently has an average broke ...

Looking at consumer spending habits could be a helpful signal when gauging the strength of the economy.The U.S. economy is at a really interesting juncture right now.Over the last few years, the U.S. has added more than 15 million jobs -- more than recovering jobs that were lost during the peak of the COVID-19 pandemic. At the same time, inflation has continued to cool from peak levels in 2022.But with that said, July's unemployment rate of 4.3% was the highest level over the last 12 months.All in all, it s ...

Financial Performance - Revenue from company-owned and franchised restaurants for the quarter ended June 30, 2024, was $6,490 million, slightly down from $6,498 million in the same quarter of 2023[7]. - Net income for the quarter ended June 30, 2024, was $2,022 million, compared to $2,310 million for the same quarter in 2023, reflecting a decrease of approximately 12.4%[7]. - Basic earnings per share for the quarter ended June 30, 2024, was $2.81, down from $3.17 in the same quarter of 2023, a decline of about 11.4%[7]. - The company reported total expenses of $3,570 million for the quarter ended June 30, 2024, compared to $3,393 million in the same quarter of 2023, an increase of approximately 5.2%[7]. - Comprehensive income for the quarter was $2,093 million, down from $2,345 million in the previous year, reflecting a decline of 10.7%[10]. - Total revenues for the Company in the second quarter of 2024 were $6,490 million, a slight decrease of 0.1% compared to $6,498 million in the same quarter of 2023[53]. - Operating income for the Company in the second quarter of 2024 was $2,920 million, down 5.9% from $3,104 million in the same quarter of 2023[53]. - Diluted earnings per share was $2.80 for the quarter, a decrease of 11%, and $5.46 for the six months, a decrease of 2%[64]. - For Q2 2024, net income decreased by 12% to $2,022 million, and diluted earnings per share decreased by 11% to $2.80, impacted by foreign currency translation[73]. Assets and Liabilities - Total current assets decreased from $7,986 million on December 31, 2023, to $4,205 million on June 30, 2024, a decline of approximately 47.3%[6]. - Total assets decreased from $56,147 million to $53,801 million, a reduction of about 4.8%[6]. - Total current liabilities decreased from $6,859 million to $3,910 million, a decline of approximately 43.5%[6]. - Long-term debt increased from $37,153 million to $38,524 million, an increase of about 3.7%[6]. - The balance of total shareholders' equity at June 30, 2023, was $(4,999) million, reflecting a decrease from $(4,707) million at the end of the previous year[15]. - The company reported a total shareholders' equity of $(76,459) million as of June 30, 2024, reflecting a decrease from $(75,520) million at the end of the previous quarter[20]. Cash Flow and Investments - Cash provided by operations for the six months ended June 2024 was $4,079 million, slightly down from $4,094 million in the same period of 2023[12]. - Capital expenditures for the quarter were $628 million, an increase of 19.4% compared to $526 million in the same quarter of 2023[12]. - Cash used for investing activities totaled $3.3 billion for the six months ended June 30, 2024, an increase of $1.9 billion compared to the same period in 2023[101]. - The company incurred $101 million in charges related to the "Accelerating the Organization" strategy in the six months ended June 30, 2024, with an expectation of approximately $250 million in restructuring charges for the full year[32]. Revenue Growth and Expansion - The total number of systemwide restaurants increased to 42,406 as of June 30, 2024, up from 40,801 in 2023, reflecting a growth of approximately 3.9%[26]. - The Company plans to open more than 2,100 new restaurants globally in 2024, contributing to nearly 4% new unit growth[61]. - The Company aims to increase its 90-day active loyalty users to 250 million by 2027, with a target of $45 billion in annual Systemwide sales to loyalty members[61]. - Revenues from franchised restaurants for the six months ended June 30, 2024, totaled $7.663 billion, up from $7.521 billion in the same period of 2023, a 1.89% increase[51]. Market Challenges - The ongoing war in the Middle East is expected to continue negatively impacting Systemwide sales and revenue, particularly in International Developmental Licensed Markets[69]. - The competitive environment remains intense, with competition from traditional and non-traditional market participants impacting sales and profitability[112]. - Supply chain interruptions and price volatility may adversely affect costs and revenues, with potential causes including inflation and transportation issues[116]. - Labor challenges, including staffing and compliance with regulations, could negatively impact operations and customer satisfaction[119]. Tax and Regulatory Environment - The effective income tax rate for the six months ended June 30, 2024, was 20.4%, up from 19.1% in 2023[37]. - The effective income tax rate was 20.9% for the quarter ended June 30, 2024, compared to 18.0% for the same quarter in 2023[100]. - The company faces increasing regulatory and legal complexities that may adversely affect its business and financial results, including compliance costs and litigation risks[126]. Strategic Initiatives - The company plans to focus on market expansion and new product development as part of its future strategy[6]. - The Company is investing in three technology-enabled platforms to enhance customer engagement and operational efficiency[63]. - The company continues to invest in restaurant development, technology, digital engagement, and delivery to enhance customer experience[111].

McDonald's Corporation's (MCD) second-quarter 2024 results disappointed investors, as revenues and earnings fell short of expectations. This marks a year-over-year decline in both key metrics. Despite these lackluster results, the stock has moved up 6.8% since the earnings release. Let's assess whether the gain is sustainable or short-lived.Highlights From MCD’s Q2 ResultsLower-than-expected Results: In second-quarter 2024, MCD posted adjusted earnings per share (EPS) of $2.97, missing the Zacks Consensus E ...