Core Insights - McDonald's $5 meal deals are successfully increasing customer spending beyond the initial price point, with average checks exceeding $10 [1][7] - The company is expanding its value meal offerings globally, with positive results reported in various international markets [2][3][4] Group 1: US Market Performance - The $5 meal deal includes items such as a McChicken or McDouble, chicken nuggets, a small drink, and fries, and has been made a permanent part of the McValue menu [1] - Other value meal options, like the "Buy one, Add one for $1" deals, are performing well and meeting expectations [2] - Despite a 1.4% decrease in same-store sales in the US, the overall strategy is aimed at attracting cost-conscious consumers [4] Group 2: International Market Performance - In Canada, the McValue menu features a $5.79 meal bundle and a $1 coffee, which has contributed to market share gains [3] - Germany has seen success with the McSmart menu, offering meal bundles at competitive prices, such as €4.99 for a double cheeseburger meal [3][4] - A similar GBP5 meal deal has been introduced in the UK, indicating a broader strategy to enhance value offerings across different regions [4] Group 3: Financial Performance - McDonald's reported a global fourth-quarter revenue of $6.39 billion, with a slight increase of 0.4% in global same-store sales [4] - The company's stock price rose approximately 4.8% following the earnings call, reflecting positive market sentiment towards its value strategy [5]

McDonald's and Schwab have been outperforming the market this year — but now may be the time for investors to sell the stocks, according to James Demmert, chief investment officer of Main Street Research. Demmert appeared on CNBC's "Power Lunch" on Monday to share his opinions on where he thinks some of the biggest stocks in the market are headed. Here are his thoughts on the two stocks to sell, as well as one name he encourages traders to buy. McDonald's Although shares of McDonald's jumped 5% Monday follo ...

While McDonald’s fourth-quarter earnings, released Monday (Feb. 10), “did not meet our expectations,” according to CEO Chris Kempczinski, customer loyalty was a bright spot amid a slight uptick (0.4%) in global comparable sales while U.S. comparable sales slipped 1.4% largely due to the aftermath of an E. coli outbreak linked to onions in its quarter pounder burgers.In 2024, McDonald’s loyalty program, MyMcDonald’s Rewards,  generated $30 billion in sales, marking a 30% increase from the previous year, whil ...

Financial Data and Key Metrics Changes - Global comparable sales decreased by 0.1% for the full year 2024, with a 0.4% increase in Q4 2024, including positive comps across IDL and IOM segments [7][13] - In the US, comparable sales were down 1.4% for Q4 2024, impacted by an E. coli outbreak [8][13] - Adjusted earnings per share for Q4 were $2.83, a 4% decrease compared to the prior year in constant currencies [24] - Adjusted operating margin for the full year was just over 46%, generating more than $14.5 billion in restaurant margin dollars [24][27] Business Line Data and Key Metrics Changes - In the international operated market (IOM) segment, comparable sales performance was slightly positive, despite negative comps in the UK [16][23] - The international developmental license (IDL) segment saw comp sales for the quarter over 4%, driven by positive results in the Middle East and Japan [23] - The US experienced sequential improvement in baseline traffic performance, with slightly positive comp guest count growth in December [15][88] Market Data and Key Metrics Changes - The QSR industry remained challenged, particularly affecting low-income consumers and families in Europe [12][13] - In Canada, the introduction of affordable price menus and strong meal bundles drove positive sales and guest count performance [17] - Germany continued to gain market share despite a contracting QSR industry, aided by successful menu innovations [19] Company Strategy and Development Direction - The company is focused on the "Accelerating the Arches" strategy, which emphasizes customer insights and competitive advantages [9][12] - Plans for 2025 include a balance of value and full-margin food innovation, with a strong emphasis on digital and development initiatives [30][36] - The company aims to open approximately 2,200 restaurants in 2025, with a significant portion in the IDL segment [46][110] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to proper performance in 2025, citing the resolution of food safety issues and strategic initiatives [9][40] - The company anticipates a gradual stabilization of the economic environment, which could benefit performance, particularly among lower-income consumers [40][41] - Management acknowledged ongoing challenges in specific markets, particularly the UK and Australia, but remains optimistic about recovery [92][94] Other Important Information - The company plans to invest between $3 billion and $3.2 billion in capital expenditures in 2025, primarily for new unit openings [46][48] - Free cash flow conversion for the year was 81%, below the expected 90% range due to pressures on top-line performance [27][48] - The company remains committed to returning excess free cash flow to shareholders over time [27][48] Q&A Session Summary Question: Early customer response to McValue and impacts on guest count and margins - Management reported positive early responses to the McValue platform, with strong take rates and improved customer perception of value [60][61] Question: US comp sales reflecting negative check and positive traffic - Management explained that the negative check was influenced by the E. coli incident, but they expect to regain momentum through value programs and food innovation [70][88] Question: Clarification on US recovery from E. coli incident - Management indicated that recovery is expected by Q2, with localized impacts remaining in the Rocky Mountain region [82][84] Question: Digital and loyalty growth impact on same-store sales - Management acknowledged that while digital and loyalty programs drive higher checks, the overall same-store sales growth remains muted due to various factors [90][99] Question: Unit growth expectations in the US versus IOM - Management expects about 2,200 gross openings in 2025, with approximately 70% in IOM and the rest in the US [106][108]

McDonald's (MCD 4.05%) stock is gaining ground in Monday's trading. The fast-food giant's share price was up 4.5% as of noon ET, amid the backdrop of a 0.5% gain for the S&P 500 (^GSPC 0.52%) and a 1.1% gain for the Nasdaq Composite (^IXIC 0.96%).McDonald's reported its fourth-quarter results before the market opened this morning, and sales and earnings performance for the period actually came in below expectations. But despite missing Wall Street's top-line and bottom-line targets, the business showed sign ...

McDonald’s suffered its worst US sales loss since the pandemic during its most recent quarter as demand took a hit from a widespread E.coli outbreak while inflation-battered diners remained watchful of their spending.Comparable sales in the US, the fast-food giant’s biggest market, fell 1.4% in the fourth quarter, its steepest drop in almost five years, when restaurants limited operations to drive-thru and delivery because of the pandemic.The steeper-than-expected loss topped an estimated 0.4% decline, acco ...

McDonald's Corporation (MCD) reported fourth-quarter 2024 results, wherein earnings were in line with the Zacks Consensus Estimate but revenues missed the same. Both top and bottom lines decreased year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Despite reporting mixed results, the company’s shares are up nearly 3% in pre-market trading session as investor sentiment received a boost after its fourth-quarter 2024 international sales increased year over year.McDonald's cha ...

For the quarter ended December 2024, McDonald's (MCD) reported revenue of $6.39 billion, down 0.3% over the same period last year. EPS came in at $2.83, compared to $2.95 in the year-ago quarter.The reported revenue represents a surprise of -1.16% over the Zacks Consensus Estimate of $6.46 billion. With the consensus EPS estimate being $2.83, the company has not delivered EPS surprise.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

Shares of McDonald's Corp (NYSE:MCD) are higher before the bell, last seen up $1.44 at $298.55. Driving this morning's surge is a surprising 0.4% jump in quarterly global same-sales, a large contrast to analysts' estimated 0.63% drop. For the fourth quarter, the fast food chain posted an adjusted earnings per share of $2.83, which was in line with estimates, while its $6.39 billion in revenue missed expectations.Today's climb will bring a welcome boost to both the equity's year-to-date and year-over-year re ...

McDonald's (MCD) came out with quarterly earnings of $2.83 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $2.95 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this world's biggest hamburger chain would post earnings of $3.18 per share when it actually produced earnings of $3.23, delivering a surprise of 1.57%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.McDonald's, wh ...