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What Analysts Think of McDonald’s Stock Ahead of Earnings

What Analysts Think of McDonald's Stock Ahead of Earnings What Analysts Think of McDonald's Stock Ahead of Earnings
What Analysts Think of McDonald's Stock Ahead of Earnings



Key Takeaways

  • McDonald’s is set to report fourth-quarter earnings on Monday morning, with analysts mostly bullish on the fast-food giant’s stock. 
  • Analysts expect a slight rise in McDonald’s revenue, and decline in adjusted profit from a year ago.
  • The latest quarter could also reveal any negative impact on sales that McDonald’s felt after an October E. coli outbreak linked to onions used in the company’s Quarter Pounder burgers.

McDonald’s (MCD) is expected to post fourth-quarter earnings before the bell Monday, with analysts mostly bullish on the fast-food giant’s stock.

Nine of the 14 analysts covering the stock tracked by Visible Alpha have a “buy” or equivalent rating, with five “hold” ratings. Their consensus price target of about $323 would suggest 10% upside from Friday’s close.

McDonald’s is expected to report a close to 1% rise year-over-year in fourth-quarter revenue to $6.46 billion, along with a 3.6% drop in adjusted net income to $2.06 billion, or $2.87 per share.

Analysts Expect Same-Store Sales Decline To Cap Difficult 2024

Analysts also expect same-store sales could also post a slight decline from a year ago, before returning to growth this year. The quarter will cap a year that brought McDonald’s a sales decline in the U.S. as executives said customers feeling the impact of inflation pulled back spending on things like fast food.

The shift drove McDonald’s to focus on value, rolling out a $5 value meal last summer that was extended through the end of the year, and into 2025. The company also added other value-centric promotions this year, with a number of competitors following suit.

Monday’s report could also show any negative impact on sales that McDonald’s felt after an E.coli outbreak connected to onions used in its Quarter Pounder burgers in October.

McDonald’s shares were little changed at $294.30 Friday. They haven’t recovered from the drop they experienced following the E.coli outbreak.



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