2023-04-24 14:34:22 ET
McDonald's Corporation ( NYSE: MCD ) will report Q1 earnings before the opening bell on Tuesday. The fast-food giant is expected to report revenue of $5.58B, EPS of $2.34, operating income of $2.47B, EBITDA of $2.96B, and free cash flow of $1.99B.
The highlight of the McDonald's ( MCD ) report could be the comparable sales marks with pricing across the menu much higher than a year ago. Consensus estimates are for McDonald's ( MCD ) to report a 7.5% comparable sales increase for the U.S. business and +8.2% global comp. Of note, 18 of the last 20 EPS revisions from analysts have been to the upward side. However, McDonald's ( MCD ) heads into earnings right at its all-time high following a 10.9% year-to-date rise. That has some analysts expecting a muted share price reaction, even if the sales and profit numbers dazzle.
The earnings conference call will be closely watched after McDonald's ( MCD ) warned on the last call that macro-related pressures could hold back 2023 results. There is also a recent report from Cowen that there have been incidences of soft April sales in quick service checks. McDonald's ( MCD ) execs could also delve into the impact of policy changes such as resumed student loan payments and reduced SNAP payments that may be demand considerations. Also Krispy Kreme ( DNUT ) and Beyond Meat ( BYND ) could see a jolt during the earnings call if execs highlight recent tests with the companies or indicate future plans with or without them.
More on McDonald's:
- Read the latest analysis on McDonald's from Seeking Alpha analysts
- View the growth metrics
- See the financial and valuation comparisons to sector peers
- Dig into the Seeking Alpha Quant Rating
- Read about McDonald's move to bring changes to its classic burger, cheeseburger and Big Mac
For further details see:
McDonald's earnings preview: Investors look for signs of comparable sales durability