FMP
Aug 05, 2025
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.
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