McDonald's Corporation (NYSE:MCD) Q1 2025 Earnings Preview

McDonald's Corporation (NYSE:MCD) is a global fast-food giant known for its iconic menu items like the Big Mac and McNuggets. The company operates in over 100 countries, serving millions of customers daily. McDonald's competes with other fast-food chains like Burger King and Wendy's. Recently, Desiree Ralls-Morrison, McDonald's Executive Vice President and Chief Legal Officer, sold 2,487 shares at $310 each, retaining 8,754 shares.

McDonald's reported strong second-quarter results for 2025, with earnings per share of $3.19 and revenues of $6.84 billion, surpassing expectations. The company's global comparable sales rose by 3.8%, driven by strategic value deals, digital advancements, and innovative menu offerings. These efforts have successfully attracted and engaged customers worldwide, as highlighted by Zacks Consensus Estimate.

The company's stock has responded positively to these results, rising by 3% to $307.75, marking its highest level since June. This increase is supported by the 20-day moving average, which has helped contain several pullbacks over the past month. McDonald's stock has experienced a 13.9% year-over-year increase, reflecting its strong market position.

McDonald's focus on tech investments and rapid digital expansion has significantly enhanced customer convenience and engagement. The introduction of new menu items and strategic marketing efforts, including a promotional tie-in with "A Minecraft Movie" and chicken strips, have contributed to the company's positive performance. As a result, McDonald's shares have risen by 3.5% in pre-market trading.

The company's market capitalization stands at approximately $219.99 billion, with a trading volume of 6.32 million shares on the NYSE. The stock has traded between $301.74 and $310.39 today, with a 52-week high of $326.32 and a low of $265.33. McDonald's continues to demonstrate resilience and growth in the competitive fast-food industry.

McDonald’s (NYSE:MCD) reported a recovery in global comparable sales during the second quarter, driven by technology enhancements and targeted marketing efforts aimed at stimulating demand amid economic uncertainty.

Executives reaffirmed their commitment to investing in artificial intelligence to streamline operations, despite CEO Chris Kempczinski earlier describing the current macroeconomic climate as the “toughest” the company has faced.

In response to concerns over a potential economic slowdown linked to tariffs imposed during former President Donald Trump's administration, McDonald’s continued to focus on offering attractive value propositions and menu innovation to appeal to budget-conscious consumers.

Global comparable sales rose 3.8% in the quarter ending June 30, marking a turnaround from a 1% decline in the prior period and exceeding Bloomberg's consensus forecast of 2.49%. Growth was recorded across all operational segments.

Adjusted earnings per share reached $3.19 on revenue of $6.84 billion, both topping Wall Street estimates.

Shares of McDonald’s advanced more than 2% during Wednesday’s trading session.

McDonald's Corporation (NYSE:MCD) is a global fast-food giant known for its extensive menu and iconic golden arches. The company operates in over 100 countries, serving millions of customers daily. McDonald's faces competition from other fast-food chains like Burger King and Wendy's. On August 6, 2025, McDonald's is set to release its quarterly earnings, with analysts estimating an EPS of $3.15 and revenue of $6.7 billion.

The anticipated EPS of $3.15 represents a 6.1% increase from the previous year, as highlighted by the Zacks Consensus Estimate. This growth is attributed to strong digital engagement, value-focused menus, and global marketing efforts. These strategies have successfully boosted sales and customer traffic, contributing to the company's positive performance.

Revenue is expected to grow by 3.5% to $6.71 billion, driven by McDonald's franchised operating model and efficiency improvements. The company's pricing actions have also contributed to margin gains, enhancing profitability. Investors are particularly interested in the performance of same-store sales in the U.S., which could indicate a recovery and potential momentum for the company.

In the previous quarter, McDonald's exceeded the Zacks Consensus Estimate by 1.1%. Over the last four quarters, the company has surpassed earnings estimates twice, missed once, and met once, with an average miss of 0.2%. The recent upward revision of the EPS estimate from $3.14 to $3.15 reflects positive sentiment around McDonald's performance.

McDonald's valuation metrics provide insights into its market position. The company has a P/E ratio of approximately 26.65, indicating the market's valuation of its earnings. Its price-to-sales ratio is about 8.46, and the enterprise value to sales ratio is roughly 10.47. Despite a negative debt-to-equity ratio of -15.28, McDonald's maintains a current ratio of approximately 1.18, suggesting its ability to cover short-term liabilities.

McDonald's Corporation, listed on the NYSE:MCD, is a global leader in the fast-food industry. Known for its iconic golden arches, McDonald's serves millions of customers daily across the globe. The company competes with other fast-food giants like Burger King and Wendy's. On July 23, 2025, Erlinger Joseph M., President of McDonald's USA, sold 939 shares of McDonald's common stock at $299.49 each. After this transaction, he retains 9,283 shares.

McDonald's recently declared a quarterly cash dividend of $1.77 per share, payable on September 16, 2025, to shareholders recorded by September 2, 2025. This dividend reflects the company's commitment to returning value to its shareholders. With a price-to-earnings (P/E) ratio of 26.12, McDonald's stock is valued based on its earnings, indicating investor confidence in its profitability.

The company's price-to-sales ratio of 8.29 shows how the market values its sales, while the enterprise value to sales ratio of 10.30 provides insight into its overall valuation. The enterprise value to operating cash flow ratio is 27.91, highlighting the company's cash flow efficiency. McDonald's earnings yield stands at 3.83%, offering a perspective on its earnings relative to its stock price.

McDonald's has a debt-to-equity ratio of -15.28, which is unusual and suggests a unique financial structure. The current ratio of 1.18 indicates a moderate level of liquidity, meaning the company can cover its short-term liabilities with its short-term assets. For more updates, stakeholders can visit the Investor Relations section of McDonald's website.

On July 10, 2025, Flatley Edith Morgan, the Executive Vice President and Global Chief Marketing Officer of McDonald's Corporation (NYSE:MCD), sold 1,000 shares of the company's common stock at $300 each. This transaction leaves her with about 8,857.56 shares. McDonald's, a leading player in the fast-food industry, operates over 43,000 locations worldwide, making it the most valuable publicly traded restaurant company.

Recently, McDonald's shares rose over 2.5%, reaching $300, following an upgrade from Goldman Sachs. The investment bank raised McDonald's stock rating from "Neutral" to "Buy," citing the company's strong position in the competitive fast-food sector. This upgrade contributed to a $5 billion increase in McDonald's market value, as highlighted by Goldman Sachs.

The return of McDonald's popular Snack Wraps has also fueled optimism on Wall Street. UBS analyst Dennis Geiger expects this move to boost the company's sales in the second half of the year. This is crucial as McDonald's has faced negative same-store sales growth in three of the last four quarters, a trend not seen since 2020. Analysts now forecast a 2.5% growth in same-store sales moving forward.

Goldman Sachs analyst Christine Cho set a price target of $345 for McDonald's stock, attributing the optimistic outlook to the success of McDonald's value meals. These meals have positively impacted the company's market performance. Currently, McDonald's stock is priced at $298.39, reflecting a 1.83% increase. The stock has traded between $295.25 and $300.78 today.

Over the past year, McDonald's stock has seen a high of $326.32 and a low of $246.12. With a market capitalization of approximately $213.36 billion, McDonald's remains a dominant force in the fast-food industry. The trading volume for the day stands at 5,353,226 shares, indicating strong investor interest.

• Erlinger Joseph M., President of McDonald's USA, sold 939 shares at $315.07 each, impacting his holdings but not necessarily indicating a negative outlook on McDonald's Corporation (NYSE:MCD).
• Despite a slight decline of 0.6% over the past month, McDonald's financial metrics such as a P/E ratio of 27.63 and a price-to-sales ratio of 8.77 are crucial for investors assessing the stock's value and growth prospects.
• The company's debt-to-equity ratio of -15.28 and a current ratio of 1.18 highlight potential concerns and strengths in its financial stability and ability to meet short-term obligations.

On May 23, 2025, Erlinger Joseph M., President of McDonald's USA, sold 939 shares of McDonald's Corporation (NYSE:MCD) at $315.07 each. This transaction leaves him with about 11,161 shares. McDonald's, the world's largest hamburger chain, is a major player in the fast-food industry, competing with companies like Burger King and Wendy's.

Despite its size, McDonald's stock has seen a slight decline of 0.6% over the past month, as highlighted by Zacks Investment Research. This is in contrast to the broader Zacks S&P 500 composite, which increased by 13.4%, and the Zacks Retail - Restaurants industry, which gained 5% during the same period. This performance raises questions about the future direction of MCD stock.

Investors are advised to focus on fundamental factors, such as changes in earnings projections, to assess McDonald's stock prospects. The company has a price-to-earnings (P/E) ratio of 27.63, which is a measure of its current share price relative to its per-share earnings. A higher P/E ratio can indicate that the stock is overvalued or that investors expect high growth rates in the future.

McDonald's financial metrics reveal a price-to-sales ratio of 8.77 and an enterprise value to sales ratio of 10.78. These ratios help investors understand how much they are paying for each dollar of sales. Additionally, the enterprise value to operating cash flow ratio is 29.21, indicating how well the company can generate cash from its operations.

The company's debt-to-equity ratio is -15.28, showing a significant level of debt compared to its equity. This can be a concern for investors, as high debt levels can impact a company's financial stability. However, McDonald's current ratio of 1.18 suggests a relatively balanced level of current assets to current liabilities, indicating that the company can meet its short-term obligations.