McDonald's Stock Struggles After Rare Earnings Miss
McDonald's stock is choppy Tuesday after a mixed first-quarter earnings report. Here's what you need to know.


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
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stock Market Today: Nasdaq Hits a New High as Nvidia Soars
A big day for Nvidia boosted the Nasdaq, but bank stocks created headwinds for the S&P 500.
-
June CPI Signals Tariff Impact: What the Experts Say
The June CPI report shows that inflation is accelerating, but at a pace that's in line with economists' expectations.
-
I'm a Financial Planner: Here Are Five Smart Moves for DIY Investors
You'll go further as a DIY investor with a solid game plan. Here are five tips to help you put together a strategy you can rely on over the years to come.
-
Neglecting Car Maintenance Could Cost You More Than a Repair, Especially in the Summer
Worn, underinflated tires and other degraded car parts can fail in extreme heat, causing accidents. If your employer is ignoring needed repairs on company cars, there's something employees can do.
-
'Drivers License': A Wealth Strategist Helps Gen Z Hit the Road
From student loan debt to a changing job market, this generation has some potholes to navigate. But with those challenges come opportunities.
-
Stock Market Today: Markets Chop Up More Trump Threats
Stocks are grinding to new highs on light summer volume, and bitcoin is only getting bigger.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have Today
Procter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
Financial Pros Provide a Beginner's Guide to Building Wealth in 10 Years
Building wealth over 10 years requires understanding your current financial situation, budgeting effectively, eliminating high-interest debt and increasing both your income and financial literacy.