Zacks: Brokerages Anticipate Mcdonald’s Corp (NYSE:MCD) to Post $2.22 EPS

Brokerages expect that Mcdonald’s Corp (NYSE:MCD) will post earnings of $2.22 per share for the current quarter, according to Zacks Investment Research. Nine analysts have made estimates for Mcdonald’s’ earnings. The highest EPS estimate is $2.26 and the lowest is $2.18. Mcdonald’s posted earnings per share of $2.10 during the same quarter last year, which would suggest a positive year over year growth rate of 5.7%. The business is expected to announce its next earnings results on Tuesday, October 22nd.

According to Zacks, analysts expect that Mcdonald’s will report full year earnings of $7.99 per share for the current fiscal year, with EPS estimates ranging from $7.87 to $8.07. For the next year, analysts forecast that the company will post earnings of $8.75 per share, with EPS estimates ranging from $8.46 to $8.90. Zacks Investment Research’s EPS calculations are a mean average based on a survey of research firms that that provide coverage for Mcdonald’s.

Mcdonald’s (NYSE:MCD) last released its quarterly earnings data on Friday, July 26th. The fast-food giant reported $2.05 EPS for the quarter, missing analysts’ consensus estimates of $2.06 by ($0.01). The business had revenue of $5.34 billion for the quarter, compared to the consensus estimate of $5.34 billion. Mcdonald’s had a negative return on equity of 92.02% and a net margin of 28.32%. Mcdonald’s’s revenue was down .2% on a year-over-year basis. During the same period in the previous year, the business posted $1.99 earnings per share.

MCD has been the subject of several research reports. MKM Partners initiated coverage on shares of Mcdonald’s in a research report on Tuesday. They issued a “buy” rating and a $250.00 price objective for the company. Zacks Investment Research upgraded shares of Mcdonald’s from a “sell” rating to a “hold” rating in a research report on Friday, April 26th. Mizuho raised their target price on shares of Mcdonald’s from $215.00 to $230.00 and gave the company a “buy” rating in a research note on Monday, July 29th. Telsey Advisory Group reaffirmed an “outperform” rating and issued a $230.00 target price (up previously from $210.00) on shares of Mcdonald’s in a research note on Monday, July 15th. Finally, Piper Jaffray Companies raised their target price on shares of Mcdonald’s from $209.00 to $226.00 and gave the company an “overweight” rating in a research note on Monday, July 15th. Eight analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus price target of $220.23.

In other Mcdonald’s news, EVP Silvia Lagnado sold 26,649 shares of Mcdonald’s stock in a transaction that occurred on Thursday, August 1st. The shares were sold at an average price of $212.58, for a total value of $5,665,044.42. Following the transaction, the executive vice president now owns 40,129 shares of the company’s stock, valued at $8,530,622.82. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Ian Frederick Borden sold 4,149 shares of Mcdonald’s stock in a transaction that occurred on Monday, May 20th. The shares were sold at an average price of $199.22, for a total transaction of $826,563.78. The disclosure for this sale can be found here. Insiders own 0.25% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the business. Lourd Capital LLC increased its holdings in Mcdonald’s by 8.2% during the second quarter. Lourd Capital LLC now owns 1,593 shares of the fast-food giant’s stock worth $331,000 after buying an additional 121 shares during the last quarter. GFS Advisors LLC acquired a new position in shares of Mcdonald’s in the second quarter valued at $212,000. Hudson Valley Investment Advisors Inc. ADV increased its holdings in shares of Mcdonald’s by 1.4% in the second quarter. Hudson Valley Investment Advisors Inc. ADV now owns 5,601 shares of the fast-food giant’s stock valued at $1,163,000 after purchasing an additional 75 shares during the last quarter. Dixon Hubard Feinour & Brown Inc. VA increased its holdings in shares of Mcdonald’s by 4.4% in the first quarter. Dixon Hubard Feinour & Brown Inc. VA now owns 7,094 shares of the fast-food giant’s stock valued at $1,347,000 after purchasing an additional 297 shares during the last quarter. Finally, Advisory Services Network LLC increased its holdings in shares of Mcdonald’s by 2.9% in the first quarter. Advisory Services Network LLC now owns 18,808 shares of the fast-food giant’s stock valued at $3,572,000 after purchasing an additional 522 shares during the last quarter. 68.21% of the stock is currently owned by hedge funds and other institutional investors.

MCD traded down $2.19 during midday trading on Wednesday, hitting $217.54. The company had a trading volume of 1,843,422 shares, compared to its average volume of 3,128,022. The company has a market capitalization of $167.95 billion, a P/E ratio of 27.54, a PEG ratio of 3.17 and a beta of 0.49. Mcdonald’s has a twelve month low of $156.56 and a twelve month high of $221.93. The firm has a 50-day moving average price of $213.35.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 17th. Investors of record on Tuesday, September 3rd will be paid a dividend of $1.16 per share. This represents a $4.64 annualized dividend and a yield of 2.13%. The ex-dividend date is Friday, August 30th. Mcdonald’s’s payout ratio is 58.73%.

About Mcdonald’s

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu. As of December 31, 2018, the company operated 37,855 restaurants, including 35,085 franchised restaurants comprising 21,685 franchised to conventional franchisees, 7,225 licensed to developmental licensees, and 6,175 licensed to foreign affiliates; and 2,770 company-operated restaurants.

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