McDonald's is expected to report third-quarter earnings before the bell on Wednesday, according to the source. Wall Street analysts surveyed by LSEG are expecting the results. StreetAccount estimates put U.S. same-store sales down 0.5%.
Last quarter, McDonald's CEO Chris Kempczinski said the chain's U.S. business fell short. He blamed uneven execution of its value offers and complicated launches of new menu items. The company then named Skye Anderson as its new U.S. president.
Investors will also watch for executive comments on the fourth quarter so far. The source notes that Chipotle Mexican Grill executives said last Wednesday that restaurant industry traffic softened in October.
The source reports that McDonald's shares have fallen about 11% over the last year. It attributes the decline to investor concerns about the U.S. business, expensive restaurant upgrade plans and the broader economy. The company has a market cap of roughly $186 billion.