McDonald’s Q3 Earnings Preview Amid Inflation and Competitive Pressures
McDonald’s (MCD) faces a critical test as it prepares to report third-quarter earnings on November 5, with Wall Street anticipating a 3.1% rise in EPS to $3.33 and a 3% revenue increase to $7.08 billion. The fast-food giant grapples with subdued customer traffic, exacerbated by persistent inflation and fierce industry competition.
Barclays analyst Jeff Bernstein maintains a Buy rating, raising his price target to $362, but notes "choppy" comparable sales trends. September saw a slowdown despite value-focused promotions, particularly in the fast-casual segment. Food cost inflation remains a headwind, forcing some operators to adjust pricing strategies.