- McDonald’s reported a slight increase in comparable sales in the fourth quarter, with a growth of 0.4% year-over-year, surpassing the estimated decline of 0.93%.
- US comparable sales fell by 1.4%, contrary to expectations of a minor decrease of 0.41%.
- International operated markets saw a marginal rise of 0.1% in comparable sales, though analysts expected a 1.14% drop.
- Sales in international developmental licensed markets increased significantly by 4.1%, outperforming the estimated decline of 0.38%.
- Earnings per share (EPS) remained stable at $2.80, consistent with the same period last year.
- Adjusted EPS slightly missed projections at $2.83, with analysts anticipating $2.84; this was down from $2.95 in the prior year.
- Total revenue for the quarter was $6.39 billion, reflecting a slight decrease of 0.3% year-over-year and falling short of the $6.45 billion expected.
- McDonald’s operating income grew by 2.4% year-over-year, reaching $2.87 billion.
- Systemwide sales to loyalty members reached about $30 billion for the full year, representing a 30% growth over the previous year, and $8 billion for the quarter across 60 markets.
- Overall, systemwide sales increased by 2% in the fourth quarter.
- Consolidated operating income also saw a 2% rise during the fourth quarter.
- McDonald’s CEO Chris Kempczinski emphasized that the “Accelerating the Arches” strategy remains effective in growing market share.
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Mcdonald’s Corp on Smartkarma
Analyst coverage of McDonald’s Corp on Smartkarma shows a mix of sentiment. Baptista Research‘s report “An Enhanced Digital Engagement & Personalization & Other Major Drivers” highlighted the challenges faced by McDonald’s in the third quarter of 2024, including addressing an E.coli crisis linked to slivered onions. This report emphasizes the company’s commitment to customer safety amidst industry challenges.
Moreover, Value Investors Club‘s analysis recommended purchasing McDonald’s for long-term investors due to its strong brand, stable cash flow, and balance sheet strength. The report outlines potential growth drivers such as revenue compound growth and operating margin expansion. In contrast, concerns were raised by another report from Baptista Research, “McDonald’s Faces E. Coli Outbreak Linked to Quarter Pounders: Time for Caution?” which highlighted an E. coli outbreak linked to Quarter Pounder burgers and its impact on the company’s stock performance.
A look at Mcdonald’s Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
McDonald’s Corp, known for its iconic golden arches, is positioned favorably for long-term success based on Smartkarma’s Smart Scores. The company scores high in resilience, a key factor reflecting its ability to weather economic uncertainties and challenges. This bolsters confidence in McDonald’s ability to overcome obstacles and maintain stability in the face of market fluctuations.
Additionally, McDonald’s shows promising outlooks in both dividend and growth scores, indicating a potential for steady income distribution and positive development opportunities. While the value score may be lower, the company’s strengths in dividends, growth, and particularly resilience point towards a steady and reliable performance trajectory in the global restaurant industry.
Summary: McDonald’s Corporation franchises and operates fast-food restaurants globally, offering a range of value-priced menu items to consumers worldwide. With a strong emphasis on resilience, the company is well-positioned to navigate challenges and maintain stability, supported by positive scores in dividends and growth factors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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