McDonalds Rises on Strong Earnings Outlook as 085 Billion Volume Ranks 121st in Market Activity

McDonald’s (MCD) edged higher by 0.31% on July 30, 2025, with a trading volume of $0.85 billion, ranking 121st in market activity. The stock is poised for an earnings report on August 6, where analysts anticipate quarterly earnings of $3.15 per share, reflecting a 6.1% year-over-year increase, and revenues of $6.71 billion, up 3.5% from the prior year. Recent analyst revisions have elevated the consensus estimate by 0.51% over 30 days, signaling improved expectations for the fast-food giant.

Analysts highlight a positive Earnings ESP (Expected Surprise Prediction) of +0.43%, derived from a higher Most Accurate Estimate compared to the Zacks Consensus Estimate. This suggests a strong likelihood of exceeding earnings forecasts, supported by the company’s Zacks Rank of #3 (Hold). Historically, McDonald’s has beaten consensus EPS estimates in two of the past four quarters, including a +1.14% surprise in the last reported period. However, challenges persist, including flat same-store sales growth and franchisee frustrations over pricing pressures and operational costs.

The company’s long-term resilience is underscored by past performance. Despite similar concerns in 2015–2016, when same-store sales declined and franchisees criticized profit-driven strategies, McDonald’s rebounded through innovations like All Day Breakfast and re-franchising. Current efforts, including the reintroduction of the Snack Wrap and trials of CosMcs-developed beverages, aim to rekindle growth. Investors remain cautiously optimistic, as the stock has historically outperformed during market downturns and bull runs, though near-term risks like shifting consumer perceptions of value remain.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day yielded a 166.71% return from 2022 to the present. This outperformed the benchmark return of 29.18%, with an excess return of 137.53% and a compound annual growth rate of 31.89%. The approach demonstrated consistent gains across high-volume equities.