McDonald’s Co. (NYSE:MCD) to Post Q1 2024 Earnings of $2.71 Per Share, Zacks Research Forecasts

McDonald’s Co. (NYSE:MCD) – Research analysts at Zacks Research reduced their Q1 2024 earnings estimates for McDonald’s in a report issued on Tuesday, April 16th. Zacks Research analyst H. Ray now expects that the fast-food giant will post earnings of $2.71 per share for the quarter, down from their previous forecast of $2.72. The consensus estimate for McDonald’s’ current full-year earnings is $12.34 per share. Zacks Research also issued estimates for McDonald’s’ Q4 2024 earnings at $3.04 EPS, Q1 2026 earnings at $3.30 EPS and FY2026 earnings at $14.91 EPS.

MCD has been the subject of a number of other reports. BTIG Research lowered McDonald’s from a “buy” rating to a “neutral” rating in a research note on Tuesday, February 6th. Barclays lowered their target price on shares of McDonald’s from $343.00 to $340.00 and set an “overweight” rating for the company in a research note on Tuesday, February 6th. TD Cowen restated a “buy” rating and issued a $325.00 price target on shares of McDonald’s in a report on Wednesday, April 10th. UBS Group decreased their price objective on shares of McDonald’s from $340.00 to $335.00 and set a “buy” rating for the company in a report on Friday, April 5th. Finally, Citigroup dropped their target price on shares of McDonald’s from $312.00 to $297.00 and set a “neutral” rating on the stock in a research note on Tuesday. Nine investment analysts have rated the stock with a hold rating and twenty-two have given a buy rating to the company’s stock. Based on data from MarketBeat, McDonald’s has a consensus rating of “Moderate Buy” and a consensus target price of $319.72.

McDonald’s Price Performance

Shares of NYSE:MCD opened at $270.98 on Wednesday. The firm has a market capitalization of $195.38 billion, a PE ratio of 23.42, a price-to-earnings-growth ratio of 2.88 and a beta of 0.71. The business has a 50 day simple moving average of $283.44 and a two-hundred day simple moving average of $280.62. McDonald’s has a 1 year low of $245.73 and a 1 year high of $302.39.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Monday, February 5th. The fast-food giant reported $2.95 EPS for the quarter, topping analysts’ consensus estimates of $2.83 by $0.12. McDonald’s had a net margin of 33.22% and a negative return on equity of 171.96%. The firm had revenue of $6.41 billion during the quarter, compared to analysts’ expectations of $6.45 billion. During the same period in the previous year, the company earned $2.59 EPS. The firm’s revenue for the quarter was up 8.1% compared to the same quarter last year.

Hedge Funds Weigh In On McDonald’s

Large investors have recently made changes to their positions in the business. Moneta Group Investment Advisors LLC raised its stake in McDonald’s by 106,340.3% in the fourth quarter. Moneta Group Investment Advisors LLC now owns 19,235,890 shares of the fast-food giant’s stock valued at $5,069,234,000 after buying an additional 19,217,818 shares during the last quarter. Norges Bank purchased a new position in shares of McDonald’s in the 4th quarter valued at approximately $2,684,899,000. Gallagher Fiduciary Advisors LLC boosted its stake in McDonald’s by 141,160.9% in the 4th quarter. Gallagher Fiduciary Advisors LLC now owns 5,613,710 shares of the fast-food giant’s stock worth $1,664,521,000 after purchasing an additional 5,609,736 shares in the last quarter. International Assets Investment Management LLC grew its position in McDonald’s by 10,702.5% during the 4th quarter. International Assets Investment Management LLC now owns 2,174,426 shares of the fast-food giant’s stock worth $644,739,000 after purchasing an additional 2,154,297 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in McDonald’s by 1,189.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,191,692 shares of the fast-food giant’s stock valued at $541,962,000 after purchasing an additional 2,021,754 shares in the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at McDonald’s

In related news, insider Joseph M. Erlinger sold 1,099 shares of the stock in a transaction that occurred on Friday, March 22nd. The shares were sold at an average price of $284.38, for a total transaction of $312,533.62. Following the completion of the sale, the insider now owns 18,075 shares of the company’s stock, valued at $5,140,168.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.27% of the company’s stock.

McDonald’s Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, March 15th. Stockholders of record on Friday, March 1st were issued a $1.67 dividend. This represents a $6.68 dividend on an annualized basis and a dividend yield of 2.47%. The ex-dividend date of this dividend was Thursday, February 29th. McDonald’s’s dividend payout ratio is currently 57.74%.

McDonald’s Company Profile

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.