McDonald's Earnings Report Looms: Stock Prices Expected to Swing Widely

McDonald's is set to release its latest earnings report on Tuesday morning. The fast food chain has seen its shares decline by over 10% since the start of the year and is expected to hit a new two-year low following the results.

The options pricing suggests traders see the stock swinging up to 4% by the end of the week, which could lift the shares back above $255. However, if the share price falls, it could drop to its lowest point since July 2024 at around $255.

Analysts are anticipating that McDonald's will report second-quarter revenue of $7.13 billion, up 4% year-over-year, along with adjusted earnings per share of $3.32, up from $3.19 a year ago. The chain's comparable store sales are projected to have grown just over 1%, according to estimates compiled by Visible Alpha.

UBS analysts believe that McDonald's results will be pressured due to the difficult macro backdrop in the US and globally, but they also see the company poised to grow market share over the next year thanks to its value-centric efforts and new products. The eight analysts tracked by Visible Alpha are split between six 'buy' and two neutral ratings, with a mean price target just shy of $327.