Will McDonald’s fail to meet expectations for the 8th quarter in a row? Here is what analysts have to say before the release of their first quarter earnings report.
McDonald’s Corp. (MCD, -1.36%), the fast-food giant, is expected to release their first quarter earnings report before the market opens today. Over the past few quarters, 7 to be exact, McDonald’s has failed to meet expectations and the same disappointing numbers are expected today.
McDonald’s has received negative publicity over the past few months with McDonald’s Japan receiving the worst publicity from the meat supplier scandal. As a result, McDonalds Japan has already announced to report a huge loss by the end of the year. Other issues facing McDonald’s have included worker safety and low wages as well as dissatisfied franchisees. However, even in the light of these tribulations, investors’ sentiment has remained nearly static.
The sluggish performance over the past few years saw a change in managerial positions. The former president and CEO of McDonald’s, Don Thompson, was replaced by Steve Easterbrook on January 28. The investors reacted to the change almost immediately and the stock recorded an immediate 5.6% spike.
According to a poll of FactSet analysts, McDonald’s is expected to report $1.06 per share earnings which is 15 cents less than the value released during the first quarter in 2014 at $1.21 Revenue is also expected to decline by $0.74 billion from $6.7 billion revenue posted last year. In the first quarter, same-store sales are also expected to plummet for the fifth time consecutively by a margin of 2%.
Recently, McDonald’s stock has seen increased investor participation and has made a gain of nearly 5% since the beginning of 2015. Meanwhile, the Dow Jones Industrial Average (DJIA), which is the index that McDonald’s is a component of, has also gained about 1% over the same period. McDonald’s is currently trading at $94.87 a share
MT4 Chart: McDonalds
Trade Stocks CFDs on STOCK.com with full training given to all clients