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.
Sign up for Kiplinger’s Free E-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
-
Stock Market Today: Stocks Step Back From New HighsInvestors, traders and speculators continue the low-volume summer grind against now-familiar uncertainties.
-
Ask the Editor — Tax Questions on the New Senior DeductionAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the new $6,000 deduction for taxpayers 65 and older.
-
Stock Market Today: Stocks Step Back From New Highs
Investors, traders and speculators continue the low-volume summer grind against now-familiar uncertainties.
-
Do You Need Flood Insurance? I'm an Insurance Expert, and Here's Where You Can Get ItStandard homeowners insurance does not cover flood damage, so you might need separate flood insurance, which you can get either through FEMA or private companies. Here are the details.
-
I'm an Investment Professional: These Are the Three Money Tips I'm Giving My College GradCollege grads can help set themselves up for financial independence by focusing on emergency savings, opting into a 401(k) at work (if it's offered) and disciplined, long-term investing.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs on Retail Sales RevivalStrong consumer spending and solid earnings for AI chipmaker Taiwan Semiconductor Manufacturing boosted the broad market.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
New SALT Cap Deduction: Unlock Massive Tax Savings with Non-Grantor TrustsThe One Big Beautiful Bill Act's increase of the state and local tax (SALT) deduction cap creates an opportunity to use multiple non-grantor trusts to maximize deductions and enhance estate planning.
-
Know Your ABDs? A Beginner's Guide to Medicare BasicsMedicare is an alphabet soup — and the rules can be just as confusing as the terminology. Conquer the system with this beginner's guide to Parts A, B and D.
-
I'm an Investment Adviser: Why Playing Defense Can Win the Investing GameChasing large returns through gold and other alternative investments might be thrilling, but playing defensive 'small ball' with your investments can be a winning formula.
