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
-
Student Visas: Older Americans' Ticket to Living in EuropeDo you envision strolling about Europe, a book in one hand, a glass of wine in the other? You could make that happen by studying there, even if you're older.
-
Three Reasons It May Be Time for an Annuity 'Refresh'Because of higher interest rates, inflation and newer annuity products, you could get a better deal today. Don't wait, though: Interest rates could start falling.
-
McDonald's Stock: How Small Changes Have Led to 100,000% ReturnsMcDonald's incremental operating improvements have added up over the years, sending the company's long-term profitability soaring.
-
Three Common Cash Flow Mistakes and How to Fix ThemBetter cash flow management could have a bigger impact on your retirement savings than simply making more money. Here's how to manage that.
-
Trusts for Child Influencers: What Families Need to KnowAs video blogging, or vlogging, gains popularity (and profitability), new laws are shaping financial obligations for caregivers of young creators.
-
Three Easy Financial Tips to Help Make This Year a SuccessEarly in a new year is the perfect time to assess where you are financially. Start by ensuring you're protected from fraud and evaluating your investments.
-
Stock Market Today: It's Mostly Onward and Upward for EquitiesThe major U.S. equity indexes were mixed Friday but closed an eventful week for earnings and data modestly higher.
-
Airbnb Stock Soars After Revenue, Earnings Top ExpectationsAirbnb stock soared Friday after the homestay and experiences platform beat fourth-quarter revenue and earnings expectations. Here's what you need to know.
