Fast-food chain McDonald’s (NYSE:MCD) will be reporting earnings tomorrow before the bell. Here’s what to look for.
McDonald's missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $6.39 billion, flat year on year. It was a mixed quarter for the company, with a solid beat of analysts’ same-store sales estimates but a slight miss of analysts’ EPS estimates.
Is McDonald's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting McDonald’s revenue to be flat year on year at $6.12 billion, slowing from the 4.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.67 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. McDonald's has missed Wall Street’s revenue estimates three times over the last two years.
Looking at McDonald’s peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Starbucks delivered year-on-year revenue growth of 2.3%, missing analysts’ expectations by 0.6%, and Domino's reported revenues up 2.5%, falling short of estimates by 1.2%. Domino's traded up 1.2% following the results.
Read our full analysis of Starbucks’s results here and Domino’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the restaurants stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.5% on average over the last month. McDonald’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $327.49 (compared to the current share price of $314.15).
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