Fast food chain McDonald’s Corporation (MCD) will release its Q2 2024 financial results on July 29. Analysts are expecting earnings per share to come in at $3.07, which is in line with the year-ago quarter. Meanwhile, analysts expect revenues of $6.62 billion, reflecting a 1.9% year-over-year increase, according to TipRanks’ data.
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In terms of share price growth, MCD’s stock has dropped about 12% over the past year. Macroeconomic headwinds, dependence on the franchisee model, and changes to dietary patterns have impacted the stock’s performance. Also, according to TipRanks’ Bulls Say, Bears Say tool, bearish analysts are worried about the declining share price and increasing competition in this fast-food space.
It would be interesting to see if the upcoming Q2 results will be able to reverse the price trend to some extent.
Website Traffic Trend Points to Declining Growth
Investors can use TipRanks’ Website Traffic Tool to gain insights into a company’s upcoming earnings report. This tool offers information on how a company’s website domain performed over a specific time frame.
For MCD, TipRanks’ website traffic screener reveals that the traffic decreased sequentially and year-over-year in Q2.
According to the tool, the number of visits to mcdonalds.com decreased by 26.52% sequentially in Q2. Moreover, website traffic declined 34.69% year over year.
Options Traders Anticipate a 4.10% Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 4.10% move in either direction.
What Is the Outlook for MCD Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on MCD stock based on 14 Buys and five Holds assigned in the past three months, as indicated by the graphic below. The average MCD stock price target is $299, implying a downside potential of 18.91%.
