Why McDonald's (MCD) Dipped More Than Broader Market Today
McDonald'sMcDonald's(US:MCD) ZACKS·2025-04-15 22:55

Group 1 - McDonald's closed at $312.48, reflecting a -1.14% change from the previous day, underperforming compared to the S&P 500's daily loss of 0.17% [1] - Over the past month, McDonald's shares have increased by 3.98%, while the Retail-Wholesale sector and S&P 500 have decreased by 2.42% and 3.94%, respectively [1] Group 2 - McDonald's earnings report is scheduled for May 1, 2025, with projected earnings of $2.67 per share, indicating a year-over-year decline of 1.11%, and expected revenue of $6.13 billion, down 0.68% from the prior-year quarter [2] - For the full year, earnings are projected at $12.25 per share and revenue at $26.38 billion, representing increases of +4.52% and +1.79% from the previous year [3] Group 3 - Recent adjustments to analyst estimates for McDonald's are important as they reflect short-term business trends and analyst sentiment regarding the company's profitability [4] - The Zacks Rank system, which evaluates estimate changes, indicates that McDonald's currently holds a Zacks Rank of 3 (Hold) [6] Group 4 - McDonald's has a Forward P/E ratio of 25.81, which is higher than the industry's average Forward P/E of 20.98, indicating a premium valuation [6] - The company has a PEG ratio of 3.24, compared to the Retail-Restaurants industry's average PEG ratio of 2.05 [7] Group 5 - The Retail-Restaurants industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 203, placing it in the bottom 19% of over 250 industries [7][8] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]