Can McDonald's Beat These Numbers?

McDonald's (NYSE: MCD  ) is expected to report Q1 earnings on April 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict McDonald's revenues will expand 0.7% and EPS will expand 2.4%.

The average estimate for revenue is $6.59 billion. On the bottom line, the average EPS estimate is $1.26.

Revenue details
Last quarter, McDonald's booked revenue of $6.95 billion. GAAP reported sales were 1.9% higher than the prior-year quarter's $6.82 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.38. GAAP EPS of $1.38 for Q4 were 3.8% higher than the prior-year quarter's $1.33 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 39.2%, 60 basis points worse than the prior-year quarter. Operating margin was 30.3%, 20 basis points better than the prior-year quarter. Net margin was 20.1%, 10 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $28.76 billion. The average EPS estimate is $5.77.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 5,929 members out of 6,237 rating the stock outperform, and 308 members rating it underperform. Among 1,579 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,535 give McDonald's a green thumbs-up, and 44 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on McDonald's is outperform, with an average price target of $96.68.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends McDonald's and recommends the following options:Long Jan 2014 $90 Calls on McDonald's and Long Jan 2014 $95 Calls on McDonald's. The Motley Fool owns shares of McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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