FINWIRES · TerminalLIVE
FINWIRES

McDonald's to Deliver Q1 Results Near Expectations, Reaffirm 2026 Outlook, RBC Says

-- 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.

Price: $301.05, Change: $-0.79, Percent Change: -0.26%

Related Articles

Research

Research Alert: Crown Castle Inc. Q1: Revenue And Ffo Beat, Fiber Sale Expected To Close In Q2

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:CCI reported Q1 revenue of $1.01B, down 4.8% Y/Y from $1.06B but beating consensus estimates by $16M. Site rental revenues declined 5% Y/Y to $961M, primarily driven by the anticipated $49M impact from DISH contract terminations and $5M from Sprint cancellations. Management left site rental revenue guidance unchanged at -5% at the midpoint to $3.85B for the full year. Excluding the impact of DISH and Sprint churn this year, management expects 3.5% organic growth for 2024. However, organic growth moderated to 3.1% in Q1 from 3.9% in the prior-year quarter, indicating some softening in underlying leasing momentum across the tower portfolio. The DISH contract terminations continue to represent a significant operational and financial headwind for CCI's near-term performance trajectory, though the company appears to be successfully managing through this challenging transition period while maintaining its full-year revenue outlook and guidance.

$CCI
Research

Research Alert: Csx Beats Q1 Consensus Estimates, Reflecting Improved Efficiency

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:CSX reported Q1 EPS of $0.43 vs. $0.34 in the prior year, beating consensus by $0.04, while revenue of $3.48B met estimates and rose 2% Y/Y. Operating margin expanded significantly to 36.0% from 30.4%, reflecting a 560-bp improvement that underscores operational efficiency progress. We view this as a solid turnaround after CSX missed expectations in the prior quarter due to weak industrial demand. Revenue growth was driven by higher merchandise pricing, strong 6% intermodal volume growth, and increased fuel surcharge revenue. CSX achieved meaningful operational improvements with train velocity up 7% to 18.9 mph, dwell time improving 7% to 10.7 hours, and carload trip plan performance rising 7% to 74%. The company delivered solid expense management as total costs declined $153M despite inflationary pressures, with labor expenses down $9M even after absorbing $41M in inflation increases, demonstrating workforce optimization benefits that reduced average rail headcount by 1,177 employees.

$CSX
Asia Markets

US Equity Indexes Jump as Iran Ceasefire Extension, Strong Earnings Help Lift Sentiment

US equity indexes jumped on Wednesday, with the Nasdaq Composite hitting an all-time high, following an extension of the Iran ceasefire agreement and strong quarterly earnings.The Nasdaq Composite jumped 1.6% to 24,657.57, with the S&P 500 up 1.1% at 7,137.90 and the Dow Jones Industrial Average 0.7% higher at 49,490.03. All sectors except real estate, utilities, industrials, and financials rose. Technology, energy, and communication services led the gainers.The ceasefire extension will last for only three to five days, Fox News reported Wednesday, citing a White House official. The US blockade of the Middle East nation's ports remains in force. Iran has made lifting the blockade a key demand for resuming negotiations to end the war and for allowing marine traffic to transit through the Strait of Hormuz, the chokepoint for 20% of global crude oil flows.Meanwhile, Iran's Revolutionary Guard Corps seized two ships in the Strait of Hormuz, CNN reported, citing the IRGC. The IRGC targeted a third vessel that is "now disabled off Iran's coast," CNN cited Iranian media.West Texas Intermediate crude oil futures Jumped 3.1% to $92.45, and Brent crude futures advanced 2.9% to $101.34.Meanwhile, as the Q1 earnings season unfolds, about 85% of S&P 500 companies that have reported this quarter beat expectations, The Wall Street Journal cited data compiled by FactSet.On Wednesday, GE Vernova (GEV) posted higher Q1 earnings and revenue, and raised its annual revenue forecast range. Shares rose 14%, the biggest gainer on the S&P 500.Boeing's (BA) Q1 loss unexpectedly narrowed as commercial aircraft deliveries rose, while the plane maker reported a smaller cash burn year over year. Shares advanced 5.5%, leading the Dow.Booking Holdings (BKNG) is under investigation for allegedly using deceptive marketing tactics to promote its premium accommodation programs, the Italian Competition Authority said Wednesday. Shares slumped 6%, the steepest decline on the Nasdaq.After the bell on Wednesday, Tesla (TSLA) reported Q1 adjusted earnings of $0.41 per diluted share, up from $0.27 a year earlier. Analysts polled by FactSet expected $0.36. Revenue for the quarter was $22.39 billion, up from $19.34 billion a year earlier. Analysts surveyed by FactSet expected $22.1 billion. Shares of the electric vehicle manufacturer were up 3.7% in after-hours activity.In fixed income, most US Treasury yields rose, with the 10-year up 1.5 basis points to 4.31% and the two-year higher by 2.5 basis points to 3.8%.On Tuesday, Kevin Warsh, in a confirmation hearing at the Senate for the chair of the Federal Reserve, defended the central bank's independence while signaling a different policy approach to interest rates, guidance, and the balance sheet, according to a Wednesday note from SocGen.In precious metals, gold futures rose 0.8% to $4,758.2, and silver futures advanced 1.6% to $77.71.

$^DJI$^IXIC$^SPX$BA$BKNG$GEV$TSLA