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 Q2 earnings: post-pandemic growth strategy expected to continue

McDonald’s are expected to post another set of bumper earnings, with the Q2 results predicted to show further growth despite wider struggles in the industry.

McDonald's Source: Bloomberg

​When is McDonald’s earning’s date?

McDonald's reports earnings on Wednesday 28 July.

McDonald’s earnings – what to expect

McDonald’s comes into this latest earnings season with the stock trading around record-highs, with having enjoyed a welcome recovery throughout 16-months since the March 2020 Covid-19 pandemic lows.

Despite the volatility and worries evident throughout the world in the face of ongoing Covid-19 restrictions, the fast food giant has remained on a strong footing thanks to its delivery and drive-through model.

That ability to outperform at a time when their competitors have struggled, does provide hope that the firm will have been able to gain market share and expand in the face of wider struggles.

McDonald’s are expected to report revenues of $5.6 billion, up 48% compared with quarter two (Q2) 2020. Meanwhile, earnings per share (EPS) are expected to rise 320% to $2.11.

With Q2 2020 marking the worst quarter of the pandemic, this report promises to deliver some impressive year-on-year (YoY) figures thanks to the base effects involved.

However, aside from those annual comparables, forecasts also point towards quarter-on-quarter (q/q) growth for sales, revenues, pre-tax profit, and EPS. Importantly, the notion that McDonald’s has taken advantage of their relative strength through the past year can be highlighted by expectations of a record number of franchised and company owned restaurants.

McDonald’s earnings – valuation and broker ratings

At 34 times earnings and with a yield of 2.20%, McDonald’s is evidently a mature stock that perhaps doesn’t offer the kind of value other less developed companies do. However, it is a trustworthy and stable name that has a proven track record that estimates signal should continue.

McDonald’s remains popular with brokers, with 29 ‘strong buy’ or ‘buy’ recommendations and nine ‘holds’, with no sell recommendations.

McDonald’s shares – technical analysis

The McDonald’s chart highlights what a solid performer this is, with each post-surge retracement period providing relatively shallow pullbacks to reflect the stability associated with the stock.

The latest period of consolidation has seen the stock trade within $224.70 and $237.86 for much of the past three-months. That range provides us with a key area which needs to be broken to bring a sign that we are going to move into a more directional phase.

Certainly the preference is for a bullish breakout given the uptrend in play. With that in mind, a break below $224.70 would signal a deeper retracement of the rally from $200.90 rather than a wider reversal signal for the stock.

McDonald's chart Source: ProRealTime
McDonald's chart Source: ProRealTime

A reliable performer looking to go from strength to strength

McDonald’s does remain a consistent performer despite the perceived shift towards healthy food options. While the pandemic hurt many in the sector, this report is expected to highlight how the fast food giant has taken advantage to further solidify its position at the top of the food chain.


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.