Core Viewpoint - McDonald's is expected to report quarterly earnings of $3.15 per share, a 6.1% increase year-over-year, with revenues projected at $6.71 billion, reflecting a 3.5% increase compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.5% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Company-owned and operated sales- Total' to be $2.43 billion, a decrease of 1.2% year-over-year [5]. - 'Revenues- Franchised revenues- Total' is projected to reach $4.15 billion, marking a 5.3% increase from the previous year [5]. - 'Revenues- Total Other revenues' is expected to be $142.01 million, showing a significant year-over-year increase of 59.6% [6]. - 'Revenues- Company-owned and operated sales- International Developmental Licensed Markets & Corporate' is estimated at $169.09 million, indicating a decline of 21.4% year-over-year [6]. Systemwide Restaurant Metrics - Total systemwide restaurants are estimated to be 44,128, up from 42,406 a year ago [7]. - Total systemwide restaurants in International Developmental Licensed Markets & Corporate are projected at 19,940, compared to 18,589 last year [7]. - Total systemwide restaurants in International Operated Markets are expected to reach 10,605, an increase from 10,333 in the same quarter last year [8]. - Total systemwide restaurants in the U.S. are projected at 13,590, compared to 13,484 a year ago [8]. - Total franchised systemwide restaurants are estimated at 42,099, up from 40,238 last year [9]. - Total company-owned and operated restaurants are expected to be 2,046, down from 2,168 a year ago [9]. - Franchised Developmental licensed restaurants are projected at 9,396, an increase from 8,815 last year [10]. - Franchised Foreign affiliated restaurants are estimated at 10,493, compared to 9,531 in the same quarter last year [10]. Stock Performance - McDonald's shares have shown a return of +2% over the past month, slightly trailing the Zacks S&P 500 composite's +2.3% change [10].
Ahead of McDonald's (MCD) Q2 Earnings: Get Ready With Wall Street Estimates for Key Metrics