Will These Numbers from McDonald's Be Good Enough for You?

McDonald's (NYS: MCD) is expected to report Q4 earnings on Jan. 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict McDonald's revenues will grow 1.1% and EPS will wane 0.0%.

The average estimate for revenue is $6.89 billion. On the bottom line, the average EPS estimate is $1.33.


Revenue details
Last quarter, McDonald's logged revenue of $7.15 billion. GAAP reported sales were 0.2% lower than the prior-year quarter's $7.17 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.43. GAAP EPS of $1.43 for Q3 were 1.4% lower than the prior-year quarter's $1.45 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 39.9%, 70 basis points worse than the prior-year quarter. Operating margin was 31.2%, 130 basis points worse than the prior-year quarter. Net margin was 20.3%, 70 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $27.52 billion. The average EPS estimate is $5.31.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,920 members out of 6,214 rating the stock outperform, and 294 members rating it underperform. Among 1,550 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,504 give McDonald's a green thumbs-up, and 46 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McDonald's is outperform, with an average price target of $98.70.

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The article Will These Numbers from McDonald's Be Good Enough for You? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. hold

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