McDonald's to report quarterly results as investors weigh revenue growth
McDonald's reports before the US market opens on Wednesday. According to stockstory.org, the market expects revenue to rise 3.1% year on year.
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what happened
Fast-food chain McDonald's will publish quarterly results on Wednesday before the US market opens, according to stockstory.org. Last quarter revenue reached $7.10 billion, up 3.7% year on year, in line with analyst forecasts. Same-store sales also matched estimates.
Market participants expect revenue to grow 3.1% year on year, roughly the same pace as the 3% gain in the year-earlier quarter. Over the past 30 days, analysts have largely reaffirmed their estimates. Over the last two years the company has several times fallen short of revenue forecasts.
Among peers in traditional fast food, Starbucks has already reported: revenue fell 4.5% and the shares dropped 1.6%. Domino's posted revenue growth of 3.4%, yet its stock lost 4.8%. McDonald's shares rose 13.9% over the last month, against an average gain of 15% in the segment.
why it matters
Investors will focus mainly on same-store sales trends and management commentary about plans, rather than the headline revenue figure, which is already reflected in analyst estimates. The report will show how resilient demand is for a large global restaurant chain while peers show mixed performance. This piece describes expectations ahead of the results, not the quarter's outcome.
tags
instruments
sources
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