Should you buy McDonald’s stock on strong Q1 earnings?

McDonald’s Corp (NYSE: MCD) reported market-beating results for its first financial quarter on Tuesday. Shares are still in the red this morning.

What’s hurting the McDonald’s stock today?

The food stock is weighed primarily because the management reiterated that a recession is likely this year not just in the United States but in Europe as well.

They also confirmed that the push back from customers against price increases in certain markets had been more than expected. On CNBC’s “Worldwide Exchange”, Sara Senatore – Senior Research Analyst at Bank of America said:

McDonald’s stock is still up 10% versus the start of the year.

Notable figures in McDonald’s Q1 earnings report

• Net income printed at $1.80 billion versus the year-ago $1.10 billion
• Per-share earnings also climbed significantly from $1.48 to $2.45
• Adjusted EPS came in at $2.63 as per the earnings press release
• Revenue climbed 4.1% on a year-over-year basis to $5.90 billion
• FactSet consensus was $2.33 a share on $5.59 billion in revenue

Same-store sales went up 12.6% in the recently concluded quarter – well ahead of 8.7% that analysts had forecast. Senatore added:

Those interested in buying McDonald’s stock following the earnings release, however, should keep in mind that the BofA analyst, nonetheless, stuck to her neutral rating on it today.