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.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.