McDonald’s Corp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component McDonald’s Corp (NYSE:MCD) will unveil its latest earnings on Friday, July 22, 2011. McDonald’s Corp. franchises and operates fast food restaurants worldwide. Chipotle Hits $10 Billion Market Cap for First Time in Company History>>

McDonald’s Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.28 per share, a rise of 13.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.26. For the year, analysts are projecting net income of $5.11 per share, a rise of 11.3% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of $1.15 per share against a mean estimate of net income of $1.14 per share. In the fourth quarter of the last fiscal year, it missed forecasts by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $6.63 billion in revenue this quarter, a rise of 11.4% from the year ago quarter. Analysts are forecasting total revenue of $26.36 billion for the year, a rise of 9.5% from last year’s revenue of $24.07 billion.

Analyst Ratings: Analysts are bullish on this stock with 15 analysts rating it as a buy, none rating it as a sell and nine rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 10.9% while it rose 2.1% in the fourth quarter of the last fiscal year and 10.1% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 8.9% to $6.11 billion in first quarter. The figure rose 4% in the fourth quarter of the last fiscal year from the year earlier, climbed 4.3% in the third quarter of the last fiscal year from the year-ago quarter and 5.3% in the second quarter of the last fiscal year.

Competitors to Watch: Wendy’s Arby’s Group Inc. (NYSE:WEN), Starbucks Corporation (NASDAQ:SBUX), Sonic Corporation (NASDAQ:SONC), Darden Restaurants (NYSE:DRI), Yum! Brands Inc. (NYSE:YUM), Chipotle Mexican Grill (NYSE:CMG), and Jack in the Box Inc. (NASDAQ:JACK).

Stock Price Performance: During April 20, 2011 to July 18, 2011, the stock price had risen $7.58 (9.7%) from $77.82 to $85.40. The stock price saw one of its best stretches over the last year between October 28, 2010 and November 8, 2010 when shares rose for eight-straight days, rising 2.4% (+$1.79) over that span. It saw one of its worst periods between May 25, 2011 and June 3, 2011 when shares fell for seven-straight days, falling 1.9% (-$1.57) over that span. Shares are up $9.83 (+13%) year to date.

(Source: Xignite Financials)

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