McDonald's (MCD) Rises But Trails Market: What Investors Should Know

Company Performance - McDonald's stock closed at $290.32, reflecting a slight increase of +0.07% from the previous day, underperforming compared to the S&P 500's gain of 0.53% [1] - Over the past month, McDonald's stock has risen by 0.08%, which is below the Retail-Wholesale sector's increase of 5.57% and the S&P 500's increase of 1.24% [1] Upcoming Earnings - McDonald's is set to release its earnings report on February 10, 2025, with an expected EPS of$ 2.82, indicating a decline of 4.41% compared to the same quarter last year [2] - The consensus estimate for revenue is projected at $6.48 billion, representing a growth of 1.11% year-over-year [2] Analyst Forecasts - Recent revisions to analyst forecasts for McDonald's are important as they reflect changes in near-term business trends, with positive revisions indicating optimism about the company's outlook [3] Zacks Rank and Valuation - The Zacks Rank system currently rates McDonald's at 4 (Sell), with the consensus EPS estimate having decreased by 0.95% in the past month [5] - McDonald's has a Forward P/E ratio of 23.41, which is lower than the industry's average Forward P/E of 23.93, and a PEG ratio of 3.85 compared to the industry's average of 2.11 [6] Industry Context - The Retail - Restaurants industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 46, placing it in the top 19% of over 250 industries [7]