McDonald's Stock Has a Lot to Prove on Tuesday

McDonald's Stock Has a Lot to Prove on Tuesday

The world's largest burger chain is earning its Golden Arches these days. Shares of McDonald's (NYSE: MCD) have moved higher every single month in 2017, rising 28% year to date. The stock hit a new all-time high earlier this month, and that's going to raise expectations come Tuesday, when McDonald's reports fresh financials. 

Analysts see $5.96 billion in revenue for the second quarter, 5% below the prior year's showing, but there's more to the top-line slide than meets the eye. McDonald's is in the process of handing over company-owned eateries to franchisees, a move that lowers revenue with the benefit of propping up margin. The Big Mac daddy has posted 11 straight quarters of year-over-year declines in revenue. The streak should stretch to an even dozen on Tuesday, and Wall Street's cool with that, given the all-time highs.

Image source: McDonald's.

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Source: Fool.com