Ahead of Earnings – MCD, CMG, PM, RAI

October 19, 2010, 10:35 am ET, BY Billy- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Thursday will be another major day in the corporate earnings world. The consumer goods space in particular is bound to capture much of the spotlight. Here are four stocks that traders will want to keep an eye on as the Q3 earnings hit parade continues to play itself out.

Serving Up Profits

Prior to the market open on Thursday, the fast food chain McDonald’s (NYSE: MCD) will check in with its Q3 results. The consensus among analysts is that the company will report a 7.8% rise in EPS on a 2.7% gain in sales when compared to the company’s prior year quarter. Shares of McDonald’s have surged 23.8% so far this year.

In August, McDonald’s reported comparable store sales growth of 4.9%. The company’s McCafe Real Fruit Smoothies and Frappes continue to be a driving force behind this incremental improvement. At present, common shares of McDonald’s sport a 3.1% dividend yield for investors to snack on.

Another fast food restaurant that will be announcing its quarterly results on Thursday is Chipotle Mexican Grill (NYSE: CMG). Wall Street is expecting the organization to report a 20.4% jump in EPS on a 19.0% gain in total revenue on a year-over-year basis. CMG shares have more than doubled year-to-date.

Still Smokin’

The tobacco company Philip Morris International (NYSE: PM) is readying itself to report its Q3 financial results before the opening bell on Thursday. Analysts are calling for the company to report an 8.6% increase in EPS on a 5.1% uptick in total revenue on a year-over-year basis. Shares of PM are currently sitting near their 52-week high.

Philip Morris is coming off of a very strong Q2 in which its adjusted diluted EPS rose 20.5% on a year-over-year basis. Adjusted net revenue was up 8.3% over the same time period. The company has benefitted from robust sales growth in its Canada and Latin America business segment. PM shares currently carry a dividend yield of 4.5%.

Another tobacco giant that will also be announcing its earnings on Thursday is Reynolds American (NYSE: RAI). The consensus is that the company will announce an 8.1% improvement in EPS and a 2.3% gain in total revenue when compared to the year-ago quarter. Shares of Reynolds American have jumped up the charts to the tune of 17.6% so far this year.

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