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I confirm my intention to proceed and enter this websiteOn Monday, Feb. 5th, the shares of McDonald’s (MCD.US) experienced a decline despite better-than-anticipated earnings for the fourth quarter due to shortcomings in terms of sales. An increase of 14% to $2.95 was seen in the adjusted earnings per share of McDonald’s, marking their fifth successive quarter of two-digit gains. There was an 8% increase in revenue, reaching $6.41 billion, narrowly missing the expectations of Wall Street which expected around $6.45 billion. Analysts had predicted earnings of $2.83 per share on a sales hike of 8.8%.
McDonald’s reported 3.4% global same-store sales growth for the quarter, short of the 4.7% increase that Wall Street anticipated. U.S. same-store sales rose 4.3% during 4Q, driven by “strategic menu price increases.” McDonald’s has faced boycotts in the Middle East after its Israeli licensee offered discounts for soldiers, causing sales declines in the region. CEO Chris Kempczinski said the company is also seeing weakening sales in some markets beyond the Middle East due to the backlash.
McDonald’s full year adjusted earnings rose 18% to $11.94 per share, exceeding FactSet estimates of $11.80. Revenue for 2023 totaled $25.49 billion, a 10% increase year-over-year but slightly below expectations of $25.53 billion.
For 2024, McDonald’s reaffirmed its December forecast of nearly 2% systemwide sales growth from new restaurant openings, excluding currency impacts. The chain plans to open over 2,100 new locations this year, continuing its broader expansion strategy to reach more customers.
(McDonald’s Stock Performance Weekly Chart)
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