McDonald’s Earnings Preview: Get Ahead of the Analysts

McDonald’s (NYSE:MCD) will report earnings before markets open on Monday, July 22nd. McDonald’s Corporation operates and franchises fast-food restaurants worldwide. The Company’s franchised and company operated fast food restaurants offer a variety of low price fast foods in locations around the world.

Here is your Cheat Sheet to Mcdonald’s Earnings:

Earnings Expectations: Analysts expect earnings of $1.40 per share on revenues of $7.10 billion. Currently, the company’s P/E ratio stands at 18.69.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.57 to a profit $1.55. For the current year, the average estimate is a profit of $5.69, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Mcdonald’s has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 23,522 22,745 24,075 27,006 27,567
Diluted EPS ($) 3.76 4.11 4.58 5.27 5.36

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 6,915.90 7,152.40 6,952.10 6,605.30
Diluted EPS ($) 1.32 1.43 1.38 1.26

Past Performance:
Mcdonald’s has missed analyst estimates 3 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]