- McDonald’s reported a decrease in global comparable sales by 1% in the first quarter of 2025, which missed the estimated increase of 0.51%.
- In the United States, comparable sales dropped by 3.6%, significantly below the expected decrease of 0.98%.
- Internationally operated markets saw a drop in comparable sales by 1%, against expectations of a 0.3% increase.
- International developmental licensed markets bucked the trend with a 3.5% increase in comparable sales, slightly above the 3.33% estimate.
- Earnings per share (EPS) were reported at $2.60, down from $2.66 year-on-year.
- The adjusted EPS came in at $2.67, slightly below the estimate of $2.68 and a decrease from $2.70 year-on-year.
- Revenue declined by 3.5% year-on-year to $5.96 billion, falling short of the $6.12 billion estimate.
- Operating income decreased by 3.2% year-on-year to $2.65 billion.
- McDonald’s systemwide sales to loyalty members achieved more than $31 billion over the past twelve months, with around $8 billion for the quarter.
Mcdonald’s Corp on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely monitoring McDonald’s Corp amidst challenges the company faced at the end of 2024. A report titled “McDonald’s: $100 Million Recovery Plan & 2,200 New Stores – Can It Bounce Back?” delves into the impact of a food safety crisis tied to an E.coli outbreak linked to slivered onions on Quarter Pounders. This crisis affected numerous individuals across 14 states, resulting in hospitalizations and unfortunately, a fatality. Despite these setbacks, analysts remain cautiously optimistic about McDonald’s recovery.
Further insights from Baptista Research in their report “McDonald’s Corporation: An Enhanced Digital Engagement & Personalization & Other Major Drivers” highlight the company’s performance in the third quarter of 2024 within the challenging Quick Service Restaurant sector. CEO Chris Kempczinski’s response to the E.coli crisis underlines McDonald’s swift actions and dedication to ensuring customer safety. The research underscores the importance of digital engagement and personalization as key drivers for McDonald’s amidst its efforts to navigate through recent setbacks.
A look at Mcdonald’s Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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, a global fast-food giant, has received positive Smart Scores across various key factors. With high scores in Resilience and Momentum, the company seems well-positioned for long-term success. The strong Resilience score indicates the company’s ability to weather economic uncertainties and market challenges, providing stability for investors. Additionally, a high Momentum score suggests that McDonald’s is experiencing positive growth trends, potentially leading to increased shareholder value over time.
The company also scored moderately in Dividend and Growth factors, reflecting a balance between generating dividends for investors and pursuing growth opportunities. While the Value score is low, possibly indicating that the stock may be trading at a premium, the overall outlook for McDonald’s Corp appears promising based on the Smart Scores, making it a company to watch in the ever-evolving global restaurant industry.
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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