Fast-food giant McDonald’s (US30: MDCD) has earnings this week that could determine the stock’s path in the coming quarter.
MCD – Weekly Chart
The price of MCD has been trading around a cluster of resistance since late 2025 and is on the verge of a breakout. The earnings release could decide a breakout or a breakdown for the stock.
McDonald’s earnings are released on Wednesday ahead of the US open, and the stock has benefited from a rotation of investors from tech shares into consumer staple stocks. Companies like Coca Cola, Pepsi, and Walmart have seen investors move to higher dividend stocks as the AI dream falters.
McDonald’s came in line with analysts’ revenue expectations last quarter, reporting $7 billion in revenue, up 3% year on year. It was a mixed quarter for the fast-food chain, with a narrow beat on analysts’ EBITDA estimates but with a significant miss of earnings per share estimates.
For this quarter, analysts are expecting McDonald’s revenue to grow by 6.9% year on year to $6.83 billion, improving from a flat revenue performance in the same quarter last year. Adjusted earnings are projected to come in at $3.05 per share.
Analysts covering the company have been confident in their estimates over the last 30 days, suggesting that they see the business model thriving into earnings. McDonald’s has missed Wall Street’s revenue estimates on five occasions over the last two years.
Some of McDonald’s peers in the fast-food segment have already reported their Q4 results, giving traders a hint of what to expect. Yum China delivered year-on-year revenue growth of 8.8%, beating analysts’ expectations by 3.9%. Yum Brands reported revenue growth of 6.4%, beating estimates by 2.7%.
While there is talk of an investor rotation into consumer stocks, McDonald’s could benefit greatly from a positive earnings release this week. If we see a breakout, then the trader would have a momentum trading opportunity.
