McDonald's (MCD) stock is bouncing between positive and negative territory Tuesday after the fast-good giant disclosed first-quarter results that were mixed compared with analysts' expectations.
In the three months ended March 31, the fast food giant's revenue increased 4.6% year-over-year to $6.2 billion. Earnings per share (EPS) were 2.7% higher at $2.70, while its global comparable-store sales rose 1.9% from Q1 2023.
However, McDonald's said that comparable (same-store) sales in its International Development Licensed Markets were down slightly due to the war in the Middle East, which more than offset positive comparable sales in Japan, Latin America and Europe.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with what analysts were expecting. According to CNBC, Wall Street was calling for revenue of $6.2 billion, earnings of $2.72 per share and global comparable-store sales growth of 2.1%.
Per data from S&P Global Market Intelligence, the results marked the first bottom-line miss for McDonald's since Q4 2021.
"Our global comparable sales growth in the first quarter marks 13 consecutive quarters of positive comparable sales growth with 30% growth over the last 4 years," McDonald's CEO Chris Kempczinski said in a statement. "As consumers are more discriminating with every dollar that they spend, we will continue to earn their visits by delivering leading, reliable, everyday value and outstanding execution in our restaurants."
Where could McDonald's stock go from here?
Unlike fellow Dow Jones stock 3M (MMM), which is notably higher after its Q1 earnings report, analysts are overwhelmingly upbeat toward McDonald's.
According to S&P Global Market Intelligence, the consensus analyst target price for MCD stock is $320.69, representing implied upside of more than 17% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm UBS is one of the more bullish outfits on McDonald's with a Buy rating and $335 price target on the stock, representing implied upside of over 22% to current levels.
"Despite MCD's recent commentary around international macro pressures and ongoing lower income consumer challenges in the U.S., we believe the brand is well positioned to drive an improved sales trajectory through the year and gain further share in key markets," UBS said in an April 5 report.
Related Content
-
Top Tech Gifts to Grab at Walmart Before ChristmasBig savings on Apple, Bose, HP, Vizio and more while there's still time to shop.
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
Ask the Editor: IRAs, 401(k)s and RMDsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on IRAs, 401(k)s and required minimum distributions
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
-
Quick Question: Are You Planning for a 20-Year Retirement or a 30-Year Retirement?You probably should be planning for a much longer retirement than you are. To avoid running out of retirement savings, you really need to make a plan.
-
Don't Get Caught by the Medicare Tax Torpedo: A Retirement Expert's Tips to Steer ClearBetter beware, because if you go even $1 over an important income threshold, your Medicare premiums could rise exponentially due to IRMAA surcharges.
-
I'm an Insurance Pro: Going Without Life Insurance Is Like Driving Without a Seat Belt Because You Don't Plan to CrashLife insurance is that boring-but-crucial thing you really need to get now so that your family doesn't have to launch a GoFundMe when you're gone.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
I'm a Tax Attorney: These Are the Year-End Tax Moves You Can't Afford to MissDon't miss out on this prime time to maximize contributions to your retirement accounts, do Roth conversions and capture investment gains.
-
I'm an Investment Adviser: This Is the Tax Diversification Strategy You Need for Your Retirement IncomeSpreading savings across three "tax buckets" — pretax, Roth and taxable — can help give retirees the flexibility to control when and how much taxes they pay.
-
Dow Rises 497 Points on December Rate Cut: Stock Market TodayThe basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.
