What to Know Ahead of MCD’s Quarterly Earnings Report

McDonald’s stock has retained 7% of its growth in the past year

facebook X logo linkedin


McDonald's Corp (NYSE:MCD) is scheduled to release its first-quarter results before the open on Thursday, April 28. Most recently, MCD reported earnings of $2.23 per share in the final quarter of 2021. Wall Street expects that McDonald's EPS (earnings per share) will be reported at a slightly decreased $2.17 in the upcoming Q1 earnings report.

The stock has a mixed post-earnings past, with a history of relatively muted next-day swings. Just two of its past eight reports saw positive next-session returns, though MCD only averaged a 1.3% swing, regardless of direction. This time around, the options pits are pricing in a 4.7% post-earnings return. 

Speaking of, options traders have taken a more bearish stance than usual of late. While calls are still outnumbering puts on an overall basis, the security's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 81% of readings from the past year, suggesting a healthier-than-usual appetite for long puts. 

Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.08 stands higher than 60% of readings from the past year. This implies short-term options traders have been more put-biased than usual. 

MCD has managed to cling to a year-over-year lead of 7%, though it's lost 7.2% for the year. The stock staged an impressive rally off its mid-March lows, though this was rejected just below the $260 level. MCD was last seen trading flat at $248.58, with the 200-day moving average containing some of the stock's recent pullback. 

mcd chart april 27

Moreover, the fast food company offers a dividend yield of 2.22% with a forward dividend of $5.52. MCD has also increased its dividend on an annual basis since 1999 and have paid out dividends since 1976, making it one of the safest dividend stocks in the market.

McDonald’s is also estimated to end fiscal 2022 with 5.7% earnings growth and 3.4% revenue growth. In addition, the fast food name is estimated to increase their earnings by 11.1% and revenues by 5.3% for fiscal 2023. Nonetheless, McDonald's stock is overvalued by most metrics. MCD trades at a forward price-earnings ratio of 25.06 and a price-sales ratio of 8.10, which are incredibly high for the minimal growth its business is expected to generate.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI