McDonald’s Corp Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component McDonald’s Corp (NYSE:MCD) will unveil its latest earnings on Friday, October 21, 2011. McDonald’s franchises and operates fast food restaurants worldwide.

McDonald’s Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.43 per share, a rise of 10.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.42. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.43 during the last month. For the year, analysts are projecting net income of $5.19 per share, a rise of 13.1% from last year.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of $1.35 per share against the mean estimate of $1.28. In the prior quarter, the company reported net income of $1.15.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 11.3% in revenue from the year-earlier quarter to $7.01 billion.

Analyst Ratings: Analysts are bullish on this stock with 18 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

A Look Back: In the second quarter, profit rose 15% to $1.41 billion ($1.35 a share) from $1.23 billion ($1.13 a share) the year earlier, exceeding analyst expectations. Revenue rose 16.1% to $6.91 billion from $5.95 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 10.9% in the first quarter and 2.1% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 8.9% in the first quarter from the year earlier, climbed 4% in the fourth quarter of the last fiscal year from the year-ago quarter and 4.3% in the third quarter of the last fiscal year.

Competitors to Watch: Chipotle Mexican Grill, Inc. (NYSE:CMG), Good Times Restaurants Inc. (NASDAQ:GTIMD), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Tim Hortons Inc. (NYSE:THI), Yum! Brands, Inc. (NYSE:YUM), Jack in the Box Inc. (NASDAQ:JACK), Panera Bread Company (NASDAQ:PNRA), Nathan’s Famous, Inc. (NASDAQ:NATH), Wendy’s Arby’s Group Inc. (NYSE:WEN), Starbucks Corporation (NASDAQ:SBUX), Sonic Corporation (NASDAQ:SONC) and Darden Restaurants (NYSE:DRI).

Stock Price Performance: During August 19, 2011 to October 17, 2011, the stock price had risen $2.02 (2.3%) from $86.64 to $88.66. The stock price saw one of its best stretches over the last year between October 28, 2010 and November 8, 2010 when shares rose for eight-straight days, rising 2.4% (+$1.78) over that span. It saw one of its worst periods between July 22, 2011 and August 2, 2011 when shares fell for eight-straight days, falling 3.9% (-$3.47) over that span. Shares are up $13.59 (+18.1%) year to date.

(Source: Xignite Financials)

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