McDonald’s (MCD) earnings Q3 2022

McDonald’s restaurant sign is seen on October 15, 2022 in Streator, Illinois, United States.

Beata Zawrzel | Nurphoto | Getty Images

MC Donalds is scheduled to report its third-quarter results before the bell on Thursday.

Here’s what Wall Street analysts polled by Refinitiv expect:

• Earnings per share: $2.58
• Revenue: $5.69 billion

In the first half of 2022, the fast-food giant saw spending from lower-income consumers slow, and that trend is likely to continue this quarter. Analysts polled by StreetAccount are forecasting same-store sales growth of 5.8%, driven primarily by higher menu prices.

According to StreetAccount estimates, US same-store sales are expected to increase by 4%. McDonald’s has focused on value propositions to appeal to customers whose budgets are under inflationary pressure. The burger chain may also generate sales from diners trading from fast-casual or full-service restaurants.

Investors will also keep an eye on McDonald’s internationally operated stores segment. The IOM business includes European markets such as France, Germany and the UK, all of which are severely impacted by higher energy costs. Additionally, the strong US dollar means painful talk rates for McDonald’s sales hitting markets with company-owned restaurants.

McDonald’s shares are down 4% this year, dragging the company’s market value down to around $200 billion. But it has outperformed the broader market. That S&P500 has decreased by 19% over the same period.

This story evolves. Please check again for updates.