{"id":40191,"date":"2023-07-25T08:59:47","date_gmt":"2023-07-25T12:59:47","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/what-to-expect-from-mcdonalds-stock-post-q2-results\/"},"modified":"2023-07-25T08:59:49","modified_gmt":"2023-07-25T12:59:49","slug":"what-to-expect-from-mcdonalds-stock-post-q2-results","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=40191","title":{"rendered":"What To Expect From McDonald\u2019s Stock Post Q2 Results?"},"content":{"rendered":"
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McDonald\u2019s stock<\/strong> (NYSE: MCD), a restaurant chain consisting of more than 40,000 mostly franchised stores, is scheduled to report its fiscal second-quarter results on Thursday, July 27. We expect MCD stock to likely trade lower with revenues and earnings missing expectations marginally in Q2 results. The weakening of all major currencies against the U.S. dollar has also been a major headwind for McDonald\u2019s in FY 2022 and Q1 2023. While the menu price increase offset this significant headwind in Q1, we expect it to possibly impact second-quarter earnings. The company noted that some customers were trimming their orders in response to price increases, with fries being a common budget casualty. That said, any further customer pushback on the price increases could lead to revenue declines. Also, margins in 2023 could also be impacted by commodity, utility, and labor inflation.<\/p>\n

Our forecast indicates that McDonald\u2019s valuation is $266 per share, which is almost 10% lower than the current market price. Look at our interactive dashboard analysis on McDonald\u2019s Earnings Preview:<\/strong> What To Expect in Fiscal Q2?<\/strong> for more details.<\/p>\n

(1) Revenues expected to be slightly below consensus estimates<\/strong><\/p>\n

Trefis estimates McDonald\u2019s Q2 2023 revenues to be around $6.2 Bil, slightly below the consensus estimate. In Q1 2023, the company\u2019s top line was up 4% year-over-year (y-o-y) at $5.9 billion. It should be noted that its Q1 comparable sales grew by almost 13%, both globally and across each segment. – thanks to price increases and marketing promotions. Successful menu and marketing campaigns and continued digital and delivery growth contributed to strong comparable sales results. McDonald\u2019s has been able to weather the economic storm in part by keeping its customer loyalty program, MyMcDonald\u2019s Rewards, going strong since it relaunched in 2021. The company\u2019s rewards program boasted nearly 50 million 90-day active members across its top six markets as of March 31. During the pandemic, the company accumulated cash reserves to prepare for recessions, going from cash holdings of $898 million in 2019 to $4.7 billion cash on hand by 2021. The company invested much of that cash in the drive-thru and delivery services and still has plenty of cash, sitting at $3.7 billion as of April 2023. We forecast McDonald\u2019s Revenues<\/strong> to be $24.6 billion for the fiscal year 2023, up 6% y-o-y.<\/p>\n

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2) EPS is likely to miss consensus estimates marginally<\/strong><\/p>\n

McDonald\u2019s Q2 2023 earnings per share is expected to come in at $2.76 per Trefis analysis, marginally missing the consensus estimate. In Q1, MCD\u2019s earnings per share grew 15% y-o-y to $2.63. McDonald\u2019s disciplined cost management helped total operating expenses remain relatively flat in the quarter. Also, a reduction in the company\u2019s outstanding share count from share repurchases explains the much faster rise in profitability as compared to its revenues.<\/p>\n

(3) Stock price estimate lower than the current market price<\/strong><\/p>\n

Going by our <\/strong>McDonald\u2019s Valuation<\/strong>, an EPS estimate of around $10.60 and a P\/E multiple of 25.1x in fiscal 2023, translates into a price of $266, which is almost 10% lower than the current market price.<\/p>\n

It is helpful to see how its peers stack up. MCD Peers shows how McDonald\u2019s stock compares against peers on metrics that matter. You will find other useful comparisons for companies across industries at Peer Comparisons.<\/p>\n

What if you\u2019re looking for a portfolio that aims for long-term growth? Here\u2019s a value portfolio that\u2019s done much better than the market since 2016.<\/p>\n

Invest with Trefis <\/strong>Market Beating Portfolios<\/strong><\/p>\n

See all Trefis <\/strong>Price Estimates<\/strong><\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

McDonald\u2019s stock (NYSE: MCD), a restaurant chain consisting of more than 40,000 mostly franchised stores, is scheduled to report its fiscal second-quarter results on Thursday, July 27. We expect MCD stock to likely trade lower with revenues and earnings missing expectations marginally in Q2 results. The weakening of all major currencies against the U.S. dollar […]<\/p>\n","protected":false},"author":1,"featured_media":40192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-40191","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"\nWhat To Expect From McDonald\u2019s Stock Post Q2 Results? | iFintechWorld<\/title>\n<meta name=\"description\" content=\"McDonald\u2019s stock (NYSE: MCD), a restaurant chain consisting of more than 40,000 mostly franchised stores, is scheduled to report its fiscal second-quarter\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=40191\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What To Expect From McDonald\u2019s Stock Post Q2 Results? 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