McDonald's (MCD) is expected to report Q1 results close to expectations and reaffirm its 2026 outlook, RBC Capital Markets said Tuesday in a report.
The setup heading into earnings is slightly unfavorable given the company's exposure to lower-income consumers in the US, a group facing increasing pressure from higher gasoline prices, RBC said. Q1 results are due May 7.
US same-store sales are expected to grow 4.5%, about 29 basis points ahead of consensus, while international markets are expected to show slightly slowing momentum with performance modeled to be roughly in line with expectations, the report said.
RBC said it will look for commentary on the impact from the Middle East conflict, which is likely to be only a slight directional headwind in Q1 and into Q2.
RBC maintained its sector perform rating with a $330 price target.
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