McDonald’s (MCD) Stock: Climbing On Solid Earnings

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McDonald’s Corporation (NYSE: MCD)

McDonald’s had a rough year throughout 2015. However, the company seems to be recovering, and that recovery is being helped by the company’s recent earnings report. Earlier today, MCD reported earnings, and the positive news is causing quite a bit of investor excitement. Today, we’ll take a look at earnings, how investors reacted to the news, other factors that are likely to cause improvements in the value of the stock, and what we can expect to see from MCD moving forward.

McDonald’s Beats Earnings Expectations

As mentioned above, MCD reported earnings early today as expected. The company beat expectations with regard to both earnings per share and top line revenue. Here’s what we saw from the report:

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  • Revenue – In terms of revenue, MCD reported $6.341 billion for the quarter. This came in well ahead of expectations in the amount of $6.236 billion.
  • Earnings – In the quarter, McDonald’s also blew away earnings expectations. While analysts expected the company to report earnings in the amount of $1.23 per share, the company actually reported earnings in the amount of $1.31 per share.

As you can see from the stats above, MCD reported incredibly positive earnings for the quarter.

How MCD Reacted In The Market

As investors, we have learned that there are few things that can cause upward movement in the market like solid earnings. In general, when a publicly traded company beats earnings expectations, we can expect to see solid growth in the value of the stock as a result. That’s exactly what we’re seeing from McDonald’s today. Currently (11:38), the stock is trading at $119.70 per share after a gain of 1.10% so far today.

Other Factors To Keep In Mind With Regard To MCD

As mentioned above, McDonald’s had a rough year throughout 2015. Unfortunately, the company’s sales simply couldn’t keep up with expectations. However, that’s changing, and for good reason. The big issue that MCD was facing was the fact that the company’s food has been viewed as unhealthy and poor quality for quite some time. Throughout 2015, MCD worked hard to change this view. They offered low calorie alternatives to their classics, artisan sandwiches, and more. As a result, sales started to climb.

Another thing that’s worth mentioning is sales that we’re seeing from McDonald’s outside of the United States. After all, international business is incredibly important to the company. With that said, we’re seeing strong growth in international sales, particularly in China and Europe. I know, this is strange considering economic conditions in those regions, but it really is what’s happening. Moving forward, I’m expecting to see the same growth continue internationally. Also, as MCD works to change the sentiment of US consumers with regard to its food, we can expect to see further increased sales here in the states. All in all, things are looking up for MCD!

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What Do You Think?

Where do you think MCD is headed moving forward? Let us know your opinion in the comments below!

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.

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