McDonald’s (NYSE:MCD) shares are under pressure in the early trading session today after the global fast-food giant’s first-quarter bottom line fell short of estimates.
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MCD’s Mixed Q1 Performance
The company’s Q1 sales rose by 5% year-over-year to $6.17 billion. The figure came largely in line with estimates. On the other hand, Its EPS of $2.70 missed the cut by a thin margin of $0.02. Still, with an increase of 1.9%, the company’s global comparable sales clocked the 13th consecutive quarter of growth. Additionally, its operating income rose by 8% to $2.74 billion.
This uptick in global comparable sales was largely driven by gains in the U.S. market and International Operated markets. The restaurant major’s International Developmental Licensed markets’ comparable sales were negatively impacted by the ongoing conflict in the Middle East. Moreover, MCD’s gains in the U.S. market were driven by strategic menu price increases.
While McDonald’s is facing sales challenges in some of its international markets, the company is betting big on China. It plans to nearly double its restaurant count in the country to over 10,000 by the end of 2028.
Is McDonald’s Stock a Buy, Sell, or a Hold?
Shares of the company have slumped by nearly 7% year-to-date. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average MCD price target of $320.48. However, analysts’ views on McDonald’s could see changes following today’s earnings report.
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