McDonald’s Corporation (NYSE:MCD) shares are trading slightly lower Wednesday as the company prepares to report its fourth-quarter earnings results after the market close. Here’s what investors need to know.

• McDonald’s stock is trading near recent highs. What’s ahead for MCD stock?

Loyalty-Fueled McDonald’s Earnings Growth In Focus

Analysts expect McDonald’s to report fourth-quarter revenue of $6.83 billion, up from $6.39 billion in the same quarter last year. Additionally, earnings per share are anticipated to reach $3.05, compared to $2.83 in the previous year’s fourth quarter, reflecting a positive trend in visitor traffic driven by the company’s loyalty program.

McDonald’s has meanwhile seen increased visitor frequency, particularly due to the success of its loyalty program, which CEO Chris Kempczinski emphasized during the second-quarter earnings call.

This growth is crucial as it follows a double miss in the third quarter, making the upcoming report a potential turning point for the company.

MCD Shares Hold Above Key Averages

The stock is currently trading 4.2% above its 20-day simple moving average (SMA) and 5% above its 100-day SMA, indicating that while there is some short-term strength, it remains above longer-term averages.

Over the past 12 months, shares have increased by 4.15% and are currently positioned closer to their 52-week highs, suggesting a relatively strong performance compared to historical levels.

The RSI is at 69.53, which is considered neutral, while the MACD is above its signal line, indicating bullish momentum. This combination suggests that while the stock is not overbought, it is showing signs of strength.

• Key Resistance: $326.50
• Key Support: $302.00

McDonald’s Global Scale And Franchise Model

McDonald’s is the world’s largest restaurant brand, with nearly $131 billion in systemwide sales across more than 44,000 restaurants and over 100 markets. The quick-service chain built its early reputation on speed, consistency and affordable hamburgers, and today its global menu spans burgers, chicken, breakfast and beverages that have helped popularize American fast-food cuisine worldwide.

The firm derives the bulk of its revenue from franchise royalties and rent (about 61%), with the remainder stemming from company-operated restaurants across three segments: the United States (41% of systemwide sales), international operated markets (34%), and international developmental/licensed markets (25%).

This diversified revenue model is critical as the company navigates changing consumer preferences and competitive pressures.

Analysts Maintain Buy, Raise Targets

Analyst Consensus & Recent Actions: MCD stock carries a Buy Rating with an average price target of $333.09. Recent analyst moves include:

• Mizuho: Neutral (Raises Target to $325.00) (Feb. 6)
• Guggenheim: Neutral (Raises Target to $325.00) (Feb. 3)
• BTIG: Upgraded to Buy (Target $360.00) (Feb. 2)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for McDonald’s, highlighting its strengths and weaknesses compared to the broader market:

• Value: Weak (Score: 15.01) — Trading at a steep premium relative to peers.
• Momentum: Neutral (Score: 46.73) — Stock is showing moderate performance indicators.

The Verdict: McDonald’s’s Benzinga Edge signal reveals a mixed outlook. While the weak value score indicates that the stock is trading at a premium, the neutral momentum suggests that it is maintaining a stable performance relative to the market.

Top ETF Exposure

Significance: Because MCD carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

MCD Shares Edge Lower Wednesday Morning

MCD Price Action: McDonald’s shares were down 1.05% at $322.53 at the time of publication on Wednesday, according to Benzinga Pro data.

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