McDonald’s shares rise 3%
McDonald’s (MCD) reported its earnings before the market opened on April 22, 2015. Shares started trading at $97. This was up 3% from the previous day’s close of $94.87. The day’s high and low were $99.35 and $96.24, respectively.
Share volume totaled ~19 million compared to the 90-day average daily volume of ~6 million shares.
Upgrades and downgrades
On April 23, RBC Capital Markets maintained its “outperform” rating with a price target of $110, which was unchanged.
On the same date, JPMorgan Chase maintained its “overweight” rating with a price target of $98, also unchanged from its previous price target.
As of April 23, eight analysts had a “buy” rating, 22 had a “hold” rating, and three had a “sell” rating on McDonald’s, with a consensus target price of $99.
Wall Street analysts’ consensus estimates for McDonald’s 2Q15 are as follows:
- adjusted earnings per share – $1.23
- revenues – $6.3 billion
- operating profits – $1.9 billion, giving a margin of 30%
- adjusted net income – $1.2 billion
Second-quarter earnings should be announced on July 22, 2015.
McDonald’s peer, Yum! Brands(YUM), saw its stock increase by 3%. For its part, Chipotle Mexican Grill (CMG), which reported its earnings on the same day, saw its share price decline by 6%. YUM and CMG respectively make up 1.5% and 1% of the Consumer Discretionary Select Sector SPDR Fund (XLY). XLY also has a 3% portfolio interest in Starbucks (SBUX).
For more on the industry, please read the Market Realist Restaurant section.