McDonald's (MCD): Q4 Earnings Release Estimates and Preview
McDonald's (MCD): Q4 Earnings Release Estimates and Preview
By:Mike Butler
The fast-food giant has had a strong recent earnings history beating estimates three quarters in a row. What to expect?
- McDonald's will report quarterly earnings on Feb. 5 at 6:00 a.m. Central Time.
- The fast-food giant has had a strong recent earnings history beating earnings-per-share and revenue estimates three quarters in a row.
- McDonald's is expected to report an EPS of $2.83 on $6.45 billion in revenue.
- CosMc's a space-themed beverage-led spinoff flourished in its first month.
McDonald's (MCD) stock went on a roller coaster in 2023, opening the year at $263.53, reaching a high of $299.35 in July, hitting a low of $245.73 in October, only to rebound to $296.85 on the last day of the year. The stock currently sits at $295.55.
McDonald's turned in stellar earnings reports lately, beating earnings per share (EPS) and revenue expectations three quarters in a row.
A McDonald's spin-off chain
The fast-food giant unveiled a new spin-off chain that is taking the world by storm—a beverage-focused storefront called CosMc's, which sports a futuristic space theme.
The first location is local to tastylive in Illinois—Bolingbrook to be exact. The initial reports are strong. CosMc's has a young customer base and double the average number of visitors of a standard McDonald's location. Investors and traders will likely want to hear more about the plans for CosMc's, with a plan so far for ten locations to open in 2024.
Earnings come out Monday
McDonald's is set to report earnings on Monday, Feb. 5 at 6:00 a.m. Central Time. Last quarter, global systemwide sales increased 11% year over year. Digital systemwide sales in McDonald's top six markets came in at nearly $9 billion for the quarter. That represented a massive 40% chunk of systemwide sales.
The MCD stock price expected move based on current implied volatility is +-$7.77, which is just under 3% of the current stock price. This is relatively low compared to other household names that are reporting earnings this month.
Bullish on McDonald's for earnings
If McDonald's can continue to beat revenue and EPS estimates and paint a bullish picture for CosMc's, we may see the market digest the earnings call in a positive way and the stock price may rise.
Given the positive results for the first CosMc's location, and the young demographic which could flood the TikTok and Instagram stories, this could be the twist McDonald's needed to go to the next level of fast-food success—if that's even possible.
Bearish on McDonald's for earnings
Any sort of big miss from an EPS or revenue standpoint, or a negative sentiment for the rest of the year can send a stock price tumbling. It will all come down to the narrative for 2024 and whether the market accepts the data presented Feb. 5.
Mike Butler, tastylive director of market intelligence, has been in the markets and trading for a decade. He appears on Options Trading Concepts Live, airing Monday-Friday. @tradermikeyb
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