McDonald's (MCD) Beats Q2 Earnings and Revenue Estimates

Company Performance - McDonald's reported quarterly earnings of $3.19 per share, exceeding the Zacks Consensus Estimate of $3.15 per share, and up from $2.97 per share a year ago, representing an earnings surprise of +1.27% [1] - The company posted revenues of $6.84 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.92%, compared to $6.49 billion in the same quarter last year [2] - Over the last four quarters, McDonald's has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - The immediate price movement of McDonald's stock will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - McDonald's shares have increased by approximately 3.1% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $3.37 on revenues of $6.97 billion, and for the current fiscal year, it is $12.27 on revenues of $26.42 billion [7] Industry Context - The Retail - Restaurants industry, to which McDonald's belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact McDonald's stock performance [5][6]