Fast-food chain McDonald’s (NYSE: MCD) will be reporting results this Wednesday morning. Here’s what you need to know.
McDonald's missed analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $5.96 billion, down 3.5% year on year. It was a softer quarter for the company, with a slight miss of analysts’ same-store sales estimates and a slight miss of analysts’ EBITDA estimates.
Is McDonald's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting McDonald’s revenue to grow 3.1% year on year to $6.69 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $3.15 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 11 downward revisions over the last 30 days (we track 22 analysts). McDonald's has missed Wall Street’s revenue estimates four times over the last two years.
Looking at McDonald’s peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. El Pollo Loco delivered year-on-year revenue growth of 3%, beating analysts’ expectations by 0.6%, and Domino's reported revenues up 4.3%, in line with consensus estimates. El Pollo Loco traded up 1.4% following the results while Domino's was also up 3%.
Read our full analysis of El Pollo Loco’s results here and Domino’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the traditional fast food stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.3% on average over the last month. McDonald's is up 3.8% during the same time and is heading into earnings with an average analyst price target of $329.15 (compared to the current share price of $304.60).
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