McDonald's (MCD) Falls More Steeply Than Broader Market: What Investors Need to Know

Company Performance - McDonald's shares closed at $314.50, down 1.33% from the previous trading session, underperforming the S&P 500's loss of 0.24% [1] - Over the last month, McDonald's shares increased by 4.54%, outperforming the Retail-Wholesale sector's gain of 0.53% and the S&P 500's gain of 1.31% [1] Earnings Estimates - The upcoming earnings release for McDonald's is projected to show earnings per share (EPS) of $3, reflecting a 6.01% increase from the same quarter last year [2] - Revenue is estimated to be $6.81 billion, up 6.6% from the prior-year quarter [2] Full Year Projections - For the full year, earnings are projected at $12.11 per share and revenue at $26.68 billion, representing increases of 3.33% and 2.92% respectively from the prior year [3] - Recent changes to analyst estimates indicate optimism regarding McDonald's business and profitability [3] Valuation Metrics - McDonald's has a Forward P/E ratio of 26.33, which is higher than the industry average of 20.85, suggesting it is trading at a premium [6] - The company has a PEG ratio of 3.54, compared to the industry average PEG ratio of 2.36 [6] Industry Ranking - The Retail - Restaurants industry, which includes McDonald's, has a Zacks Industry Rank of 178, placing it in the bottom 28% of over 250 industries [7] - The Zacks Industry Rank evaluates the performance of industry groups based on the average Zacks Rank of individual stocks [7]