Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

McDonald's Q4 earnings: will the fast-food king continue to beat the forecast?

Based on all the earnings reported in 2021, McDonald's rarely let its shareholders down.

McDonald's Source: Bloomberg

When is the report date?

McDonald's Corporation will report its fourth-quarter earnings on January 27th, before the market opens. The report will be for the fiscal Quarter ending Dec 2021.

What to expect?

According to Zacks Investment Research, based on 13 analysts' forecasts, the consensus EPS forecast for the quarter is $2.31, up by 37.6% from EPS of $1.70 one year ago. Based on this forecast, McDonald's will record a 16% drop in EPS; however, it is still in line with the fast-food giant's seasonal pattern.

Revenue is forecast to climb 13.5% year-over-year to $6.03 billion, benefitting from higher menu prices, a successful digital loyalty program and the regional boost. In the Q3 earnings, McDonald's international operated markets segment saw its same-store sales rise 13.9% from a year ago, fuelled by recovered demand after Covid restrictions eased in the United Kingdom, Canada, France, and Germany. As a result, there's good reason to believe that countries like Australia and Japan's same-store sales will show some significant rebound in the fourth quarter when these nations conclude their lockdown.

Based on all the earnings reported in 2021, McDonald's rarely let its shareholders down. Earnings from quarters two and three successfully beat the forecast by double digits. Hence, market participants expect McDonald's to continue its outstanding record in the fourth quarter and outperform its pre-Covid level amid the new Omicron variant.

Source: https://www.marketbeat.com/instant-alerts/nyse-mcd-earnings-date-2022-01-2-3/

Source: Nasdaq

Key watch points:

  • Pricing power
  • Labour shortage
  • Impact by Omicron

From a macro point of view, inflation is believed to be a major risk and a vital test for every company's ongoing profitability. From the last quarter's report, we can see that the leading burger and chips makers' menu prices have increased by 6% yearly. Can McDonald's continue to exercise its pricing power when its hometown country's inflation rate grew at the fastest pace in 30 years to offset increased labour and commodity costs?

Staffing shortage is another surging concern that hit the world's best-known fast-food chain. It was reported that some restaurants scaled back their late-night hours and understaffed some locations that has put pressure on the chain's speed of service and sales volume. Therefore, McDonald's outlook for the months ahead will be in focus as the investors are keen to know how the fast-food giant will deal with worries surrounding staffing shortages considering the fast-spreading of Omicron continues to deteriorate the labour crisis.

Technical Analysis

McDonald's continues to reward its investors with a robust return. Since early 2021, the share price of fast-food king has grown by 24.6%. The prospect for its price looks also strong as the market is making the shift to favour value stocks under the tighter monetary environment.

Image Source: Zacks Investment Research

From a technical standpoint, MCD has pulled back 7% from its all-time high of $271.15 recorded in Jan 4th. Despite recent losses, the price remains in the ascending wedge above 100 days moving average, suggesting the long-term uptrend stay unchanged.

For the short-term outlook, the current major level of support comes in at around $253, a break of which sees $249 as a possible turning point for the price to head south. However, an up-turned RSI indicator from the oversold territory and the increased trading volume last week can both be viewed as bull sign.

Source: Tradingview

Take your position on over 13,000 local and international shares via CFDs or share trading – and trade it all seamlessly from the one account. Learn more about share CFDs or shares trading with us, or open an account to get started today.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access
Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.