McDonald’s Prepares to Announce First-Quarter Earnings for 2025

McDonald’s Corporation (MCD), based in Chicago, Illinois, operates and franchises fast food chains under the McDonald’s brand. With a market cap of $225.8 billion, MCD is the world’s largest fast food restaurant chain. The company offers a range of food products, soft drinks, and non-alcoholic beverages. Globally, McDonald’s has over 40,000 locations in more than 100 countries, with approximately 95% of its restaurants owned by independent local entrepreneurs. The fast-food giant is anticipated to release its fiscal first-quarter earnings for 2025 before market opening on Thursday, May 1.

Analysts’ Earnings Expectations

Ahead of the earnings release, analysts project that McDonald’s will report a profit of $2.67 per share on a diluted basis. This estimate represents a decline of 1.1% from $2.70 per share in the same quarter last year. Within the past four quarters, the company has either met or exceeded consensus estimates in two of those periods, while falling short on two occasions.

Annual EPS Projections

For the full fiscal year, analysts expect McDonald’s to deliver an EPS of $12.25, marking a 4.5% increase from $11.72 in fiscal 2024. Projections for fiscal 2026 suggest a further growth in EPS to $13.25, reflecting an 8.2% year-over-year rise.

Stock Performance Overview

Over the past 52 weeks, MCD stock has outperformed the S&P 500’s ($SPX) gain of 6.6%, with shares increasing by 17.4% during this time. Additionally, McDonald’s has outpaced the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 8.5% gains in the same period.

Driving Forces Behind McDonald’s Success

Much of McDonald’s success stems from its robust digital ecosystem, particularly the MyMcDonald’s Rewards program, which boasts 175 million active users across 60 markets. This program enhances sales and yields valuable customer data, fueling personalized marketing strategies. As consumer preferences shift increasingly towards digital experiences, McDonald’s focus on innovation positions the company for growth. New menu items and value offerings like the “$5 Meal Deal” further attract customers and address affordability concerns.

Recent Quarterly Results and Analyst Ratings

On February 10, MCD shares experienced a more than 4% increase following the release of its Q4 results. The company reported an adjusted EPS of $2.83, meeting analysts’ expectations, but its revenue at $6.4 billion fell short of the projected $6.5 billion.

The consensus among analysts on MCD Stock is moderately optimistic, with an overall “Moderate Buy” rating. Among 35 analysts tracking the stock, 20 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and 13 recommend a “Hold” position. The average analyst price target is set at $330.94, indicating a potential upside of 5.9% from current levels.

On the date of publication, Neha Panjwani did not hold positions in any of the securities mentioned in this article. This information is for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

More news from Barchart

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.