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McDonald's Q1 Earnings Beat, Revenues Miss Estimates, Stock Down
MCDMcDonald's(MCD) ZACKS·2025-05-01 16:15

Core Insights - McDonald's Corporation reported first-quarter 2025 results with earnings exceeding the Zacks Consensus Estimate but revenues falling short [1][3] - The company's shares declined by 1.5% in pre-market trading following the results, primarily due to a decrease in comparable guest counts [1] Earnings & Revenue Discussion - Adjusted earnings per share (EPS) for the first quarter were 2.67,surpassingtheZacksConsensusEstimateof2.67, surpassing the Zacks Consensus Estimate of 2.64, with a year-over-year increase of 1% [3] - Quarterly net revenues totaled 5,956million,missingtheconsensusmarkof5,956 million, missing the consensus mark of 6,085 million, and reflecting a 3% year-over-year decrease [3] - Sales at company-operated restaurants were 2.13billion,down92.13 billion, down 9% year over year, while franchise-operated restaurant sales amounted to 3.66 billion, a 2% decline year over year [3] - Other revenues increased significantly by 78% year over year to 162million[3]ComparableSalesPerformanceGlobalcomparablesalesdecreasedby1162 million [3] Comparable Sales Performance - Global comparable sales decreased by 1% compared to a 1.9% growth in the prior-year quarter, with an estimated increase of 1.1% anticipated [4] - In the United States, segmental comparable sales declined by 3.6%, contrasting with a 2.5% growth in the prior-year quarter, influenced by the Leap Day comparison [5] - International Operated Markets saw a 1% decline in segmental comps against a 2.7% growth in the year-ago quarter, with varied performance across markets [6] - The International Developmental Licensed Segment reported a 3.5% increase in comparable sales, driven by growth in the Middle East and Japan [7] Operating Highlights & Expenses - Total operating costs and expenses for the first quarter were 3.30 billion, down 4% year over year [8] - Operating income decreased by 3% year over year to 2.64billion,whilenetincometotaled2.64 billion, while net income totaled 1.86 billion, also down 3% year over year [8]