McDonald’s to serve up Q3 results

McDonalds will announce its third-quarter figures on Tuesday 21 October. Analysts are expecting revenue of $7.2 billion and EPS of $1.37.

McDonald’s sign
Source: Bloomberg

McDonald’s is trading at $91.25 and the share price is 7.8% lower since announcing its second-quarter numbers in July which missed traders’ expectations. Revenue came in at $7.18 billion vs $7.28 billion and EPS was $1.4 vs $1.43. Like-for-like sales in the US dropped by 1.5% and Europe registered a 1% decline, whereas Africa, the Middle East and Asia posted a 1.1% rise.

The world’s largest restaurant chain introduced new items to its menu but some customers say it resulted in an over-complication of the ordering process which slowed things down. The fast-food chain has been struggling to gain market share, and CEO Don Thompson stated the focus will be on marketing and low-priced items on the menu. 

Equity analysts are moderately bullish on McDonalds. Out of the 33 recommendations, seven are buys, 23 are holds and three are sells.

The share price failed to hit $105 twice in the past two years, and has been in steady decline since May. Weak figures could push the stock to $86, while a positive report could drive the share price to $93.53.

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. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.