Earnings preview: Will McDonald’s serve up healthy earnings?
Posted by: admin in Stocks Money News
Filed under: Earnings reports, Forecasts, McDonald’s (MCD), Yum Brands (YUM), Wendy’s Intl (WEN), Burger King Hldgs (BKC)
McDonald’s (NYSE: MCD), whose competitors include Yum! Brands (NYSE: YUM), Burger King (NYSE: BKC), and Wendy’s (NYSE: WEN), isn’t known for being a part of a healthy diet, no matter how much branding it’s done in that area. However, it is known for delivering good earnings. That’s why investors probably aren’t too worried when it comes to Wednesday, the day that the fast-food behemoth is set to hand off a sack of quarterly numbers at the earnings-report drive-thru.
According to AOL Finance, McDonald’s beat the street by a wide margin in the first quarter. The call was for about 70 cents per share which Mickey Dee’s beat by a whopping 11 cents. The previous quarters weren’t as impressive, but they were solid enough. McDonald’s seems to have the game of at least matching expectations down pat, so I am confident that come Wednesday, the company’s bottom line will be close to the 86 cents per share that Wall Street is looking for in the second quarter, according to Earnings.com.
If McDonald’s makes the number, then it will represent growth of over 20%. Double-digit appreciation is a valuable commodity in this time period. I can’t say, though, that McDonald’s won’t have its challenges cut out for it. After all, inflation is affecting everyone, and fuel prices theoretically could hamper the popularity of the company’s valuable drive-thru asset (I used one last evening myself). But McDonald’s has that famous dollar menu going for it, so even in tough times, fans of fatty foodstuffs can still afford the oily, heart-clogging grub.
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