McDonald's (MCD) ended the recent trading session at $297.01, demonstrating a +1.09% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 2.71%. Elsewhere, the Dow saw a downswing of 1.9%, while the tech-heavy Nasdaq depreciated by 3.56%. Shares of the world's biggest hamburger chain witnessed a loss of 4.74% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 4.01%, and the S&P 500's gain of 3.5%.The upcoming earnings re ...

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Group 1 - The Wendy's Company (NASDAQ:WEN) is considered a risky investment, with Jim Cramer expressing a preference for McDonald's and other casual dining stocks like Darden and Texas Roadhouse, which he believes have limited downside potential [1][2] - Wendy's has recently cut its dividend to 5%, indicating potential issues within the company, and Cramer advises against investing in Wendy's due to the challenges in the burger industry [2] - Despite acknowledging some potential for WEN as an investment, there are other AI stocks that are viewed as having greater upside potential and less downside risk [2]

Group 1 - McDonald's has a strong historical growth trajectory, with over 44,000 locations in more than 100 countries, indicating its status as a successful global chain [1] - Despite its growth potential, there is uncertainty regarding future growth plans, complicating the prospects for significant returns on investment [2] - The stock's recent performance shows that a $10,000 investment five years ago would be worth less than $14,600 today, and including dividends, it would grow to less than $16,400 [4] Group 2 - McDonald's operates primarily on a franchise model, with 95% of its locations being franchises, which contributes to its recession-resistant business model [5] - In the first half of 2025, McDonald's revenue was $12.8 billion, reflecting only a 1% year-over-year growth, while net income was $4.1 billion, showing a 4% yearly gain [6] - The company's P/E ratio of 27 is slightly below the S&P 500 average of 30, suggesting an average valuation that may limit significant stock price appreciation [7]

Company Performance - Wendy's reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and up from $0.27 per share a year ago, representing an earnings surprise of +16.00% [1] - The company posted revenues of $560.93 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.97%, although this is a decrease from year-ago revenues of $570.73 million [2] - Over the last four quarters, Wendy's has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Wendy's shares have declined approximately 38.9% since the beginning of the year, contrasting with the S&P 500's gain of 7.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.25 on revenues of $557.94 million, and for the current fiscal year, it is $0.93 on revenues of $2.2 billion [7] Industry Context - The Retail - Restaurants industry, to which Wendy's belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Wendy's stock performance [5]

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]

Company Overview - McDonald's is expected to report quarterly earnings of $3.15 per share, reflecting a year-over-year increase of +6.1% [3] - Revenues are anticipated to reach $6.71 billion, which is a 3.5% increase from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised 0.51% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for McDonald's is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.43% [12] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10] - McDonald's currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, McDonald's exceeded the expected earnings of $2.64 per share by posting $2.67, achieving a surprise of +1.14% [13] - Over the past four quarters, McDonald's has beaten consensus EPS estimates two times [14] Industry Context - Portillo's Inc., another player in the Zacks Retail - Restaurants industry, is expected to post earnings of $0.12 per share, indicating a year-over-year change of +20% [18] - Portillo's revenues are projected to be $195.3 million, up 7.4% from the previous year [18] - Despite a recent revision of the consensus EPS estimate being 5.6% lower, Portillo's has a higher Most Accurate Estimate leading to an Earnings ESP of +10.64% [19]

Group 1: Stock Performance - McDonald's stock closed at $291.55, reflecting a +2.07% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.52% [1] - Over the past month, McDonald's stock has decreased by 8.41%, underperforming the Retail-Wholesale sector's gain of 2.37% and the S&P 500's gain of 5.95% [1] Group 2: Upcoming Financial Results - McDonald's is expected to report earnings per share (EPS) of $3.14, which represents a 5.72% increase from the same quarter last year [2] - Revenue is projected to be $6.7 billion, indicating a 3.18% increase compared to the year-ago quarter [2] Group 3: Annual Estimates - For the annual period, earnings are anticipated to be $12.25 per share and revenue is expected to reach $26.35 billion, reflecting increases of +4.52% and +1.64% respectively from the previous year [3] - Recent analyst estimate revisions suggest a favorable outlook on McDonald's business health and profitability [3] Group 4: Valuation Metrics - McDonald's is currently trading at a Forward P/E ratio of 23.33, which is above the industry average of 22.21, indicating a premium valuation [6] - The company has a PEG ratio of 2.98, compared to the Retail-Restaurants industry's average PEG ratio of 2.59 [6] Group 5: Industry Context - The Retail-Restaurants industry is ranked 140 in the Zacks Industry Rank, placing it in the bottom 44% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

This hamburger chain is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -3.7%. Revenues are expected to be $557.59 million, down 2.3% from the year-ago quarter. Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. Wendy's (WEN) shares soared 6% in t ...

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]