McDonald’s 3Q17 performance
McDonald’s (MCD) posted its 3Q17 earnings on October 24, 2017. Its adjusted EPS (earnings per share) was $1.76 on revenues of $5.75 billion. Compared to 3Q16, EPS rose 8.6%, while revenue fell 10.4%.
Analysts were expecting McDonald’s to post EPS of $1.77 on revenues of $5.73 billion. The company outperformed analysts’ SSSG (same-store sales growth) estimate of 3.6% in the United States by posting SSSG of 4.1%. The better-than-expected SSSG appears to have increased investor confidence, leading to a rise in McDonald’s stock. As of October 25, 2017, McDonald’s was trading at $163.58, which represents a rise of 0.10% since the announcement of its 3Q17 earnings.
It’s been a good year so far for McDonald’s, with its stock rising 34.4%. During the same period, peers Wendy’s (WEN) and Restaurant Brands International (QSR) have risen 11.7% and 41.4%, respectively. Jack in the Box (JACK) has fallen 8.8% during the same period.
In this series, we’ll look at McDonald’s 3Q17 earnings release and compare the company’s performance with analysts’ estimates. We’ll also cover management’s 2017 guidance and analysts’ estimates for the next four quarters. Finally, we’ll wrap up the series by looking at the company’s valuation multiple and analysts’ recommendations.
Let’s start by looking at McDonald’s 3Q17 revenue.