McDonalds Corp. (MCD) continues to rack up impressive gains, distinguishing itself as a steady player in a very choppy market.
Company Description
McDonalds Corp, operates one of the world’s largest fast food chains, with over 35,000 restaurants world wide. The company has a market cap of $63 billion.
McDonalds is set to report its second-quarter results on July 15, and if the company’s first-quarter results, reported on Apr 22 are any indication, investors should be pleased.
First-Quarter Results
Although sales were down 10% from last year, income was up to $979.5 million from $946.1 million last year. Earnings came in at 83 cents, one penny better than the consensus.
Global same-store sales were up 4.3%, with Asia/Pacific, Middle East and Africa regions leading the way at 5.5%.
McDonalds also noted that its McCafe initiative was trending ahead of schedule and producing more revenue than expected.
May Same-Store Sales
More recently, McDonalds reported strong May same-store sales were up 5.1% from last year, with international sales leading the way and domestic results showing some weakness.
Estimates Rise
With a steady stream of positive data coming down the line, analysts continue to raise their estimates. The current year is up 6 cents in the last 30 days to $3.86 per share. The next-year estimate is up 6 cents in the same period to $4.25, a bullish 10% earnings growth projection.
Income
And to top it all off, McDonald’s is rewarding its shareholder with a very respectable dividend of 3.50%.
