McDonald's (MCD) Q1 Earnings Surpass Estimates

Core Insights - McDonald's reported quarterly earnings of $2.67 per share, exceeding the Zacks Consensus Estimate of $2.64 per share, but down from $2.70 per share a year ago, indicating a slight decline year-over-year [1] - The company generated revenues of $5.96 billion for the quarter, missing the Zacks Consensus Estimate by 2.12% and down from $6.17 billion year-over-year [2] - McDonald's shares have increased by approximately 10.3% since the beginning of the year, contrasting with a decline of 5.3% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.11 on revenues of $6.64 billion, while the estimate for the current fiscal year is $12.21 on revenues of $26.39 billion [7] - The trend of estimate revisions for McDonald's is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Retail - Restaurants industry, to which McDonald's belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of McDonald's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]