McDonald's is about to report earnings. Here's what to expect — SkimNews
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- McDonald's is expected to report third-quarter earnings before the bell on Wednesday.
- LSEG-surveyed analysts expect McDonald's to report $3.38 in earnings per share and $7.29 billion in revenue.
- Chris Kempczinski said last quarter that McDonald's U.S. business fell short, citing uneven execution of value offers and complicated launches of new menu items.
- McDonald's named Skye Anderson as its new U.S. president in response to the domestic shortfall.
- StreetAccount estimates put McDonald's projected U.S. same-store sales at a 0.5% decline for the third quarter, which analysts expect to be worse for the home market.
- Chipotle Mexican Grill executives said last Wednesday that restaurant-industry traffic softened in October; investors are focused on McDonald's executive commentary about the fourth quarter so far.
- McDonald's shares have fallen about 11% over the past year amid concerns about the U.S. business, expensive restaurant upgrades and the broader economy; its market cap is roughly $186 billion.
Why it matters: With shares down about 11% over the past year, the $3.38 EPS and $7.29 billion revenue targets provide investors with a concrete benchmark for Wednesday. The sharper test is the projected 0.5% decline in U.S. same-store sales, after McDonald's tapped a new U.S. president following the domestic shortfall.
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