Key Takeaways
- McDonald's is set to report earnings before the bell Tuesday, with analysts expecting revenue to rise while profits drop slightly.
- The chain's summer value meal promotion was extended last month, as the company said sales have improved because of the deal.
- McDonald's stock took a hit this week after U.S. health authorities said an E. coli outbreak is being investigated, potentially linked to the chain's Quarter Pounder burger.
McDonald's (MCD) reports earnings before the bell Tuesday, with investors likely watching to see if the company's $5 summer value meal succeeded in driving customers back to the fast-food giant after it said the promotion will run into December.
Analysts expect a small bump in third-quarter revenue to $6.8 billion, compared with just under $6.7 billion at the same time last year, with profit expected to decline by about $20 million to $2.3 billion.
Analyst Estimates for Q3 2024 | Q2 2024 | Q3 2023 | |
Revenue | $6.8 billion | $6.49 billion | $6.69 billion |
Earnings Per Share | $3.20 | $2.80 | $3.17 |
Net Income | $2.3 billion | $2.02 billion | $2.32 billion |
Key Metric: Comparable Store Sales
澳洲幸运5官方开奖结果体彩网:Similar to the prior quarter, analysts expect McDonald's to report a 0.7% year-over-year drop in 澳洲幸运5官方开奖结果体彩网:comparable store sales as the fast-food giant works to win over customers turned off by higher prices with a 澳洲幸运5官方开奖结果体彩网:value meal promotion.
Prices rose and foot traffic fell in the U.S. in the second quarter, as McDonald's CEO Chris Kempczinski said consumers are "more discriminating with their spend," trying to get the most value for their money.
Business Spotlight: Value Meal Impact, E🐈. Cಞoli Investigation
The company 澳洲幸运5官方开奖结果体彩网:said last month that its value meal has been successful, announcing most of its franchise partners had 澳洲幸运5官方开奖结果体彩网:voted in favor of extending the promotion beyond the in💜itially planned summer run, into Decembe♛r.
McDonald's said at the time that it had seen sales rising among lower-income consumers because of the value meal, after higher prices 澳洲幸运5官方开奖结果体彩网:pushed those customers away from McDonald's earlier this year.
McDonald's shares popped in the wake of the company's second-quarter report in July, though they took a hit this week after U.S. health authorities said they were 澳洲幸运5官方开奖结果体彩网:investigating an E. coli outbreak possibly linked to the burger chain’s Quarter Pounder, leaving the stock little c꧅hanged from the start of the year.
Most analysts of the company tracked by Visible Alpha, 10 out of 16, have a "buy" or equivalent rating on McDonald's stock while the other six have a "hold" rating, with an average price target of $317.94, implying about 5% upside from Thursday's closing price of $301.58.
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