What To Expect From McDonald’s Stock Post Q2 Results?

McDonald’s stock (NYSE: MCD), a restaurant chain consisting of more than 40,000 mostly franchised stores, is scheduled to report its fiscal second-quarter results on Thursday, July 27. We expect MCD stock to likely trade lower with revenues and earnings missing expectations marginally in Q2 results. The weakening of all major currencies against the U.S. dollar has also been a major headwind for McDonald’s in FY 2022 and Q1 2023. While the menu price increase offset this significant headwind in Q1, we expect it to possibly impact second-quarter earnings. The company noted that some customers were trimming their orders in response to price increases, with fries being a common budget casualty. That said, any further customer pushback on the price increases could lead to revenue declines. Also, margins in 2023 could also be impacted by commodity, utility, and labor inflation.

Our forecast indicates that McDonald’s valuation is $266 per share, which is almost 10% lower than the current market price. Look at our interactive dashboard analysis on McDonald’s Earnings Preview: What To Expect in Fiscal Q2? for more details.