Nathan Stirk/Getty Images News Investment Thesis McDonald's Corporation (NYSE:MCD) continues be a highly profitable business with both great topline and bottom-line growth characterizing their FY23. Despite a difficult macroeconomic backdrop, McDonald's managed to grow sales and margins thanks to efficient cost control and a great understanding of what customers want from the menu. When combined with a reasonable 8% undervaluation given a base-case scenario, I believe the firm's stock still makes for a comp ...

Is the $18 Big Mac combo what finally broke America?Low-income customers making less than $45,000 per year have largely stopped ordering from McDonald’s, the fast-food giant’s chief executive Chris Kempczinski admitted Monday on an earnings call with Wall Street analysts.A Big Mac, fries and drink has risen to nearly $18 at a handful of locations while hash browns are up to $6.And it’s driven away customers fed up with inflation. Global same-store sales in the latest quarter had grown just 3.4%, falling sh ...

Despite a fourth-quarter earnings beat from McDonald's Corp. (MCD) Monday, investors focused on the company missing its revenue estimates, sending the company's stock sharply lower.The international fast-food giant posted better-than-expected diluted earnings per share of $2.95 as revenue rose 8% from the year-ago period to $6.41 billion, which was slightly shy of expectations.The big concern for investors was the impact on sales from boycotts tied to the Israel-Hamas war. The company's International Develo ...

McDonald’s CEO admitted the burger giant’s sales have taken a hit as jacked-up menu prices have turned off core customers — and signaled the chain plans to focus on “affordability” this year. The Chicago-based fast-food behemoth — which has lately taken heat over a Big Mac combo meal priced at $18 — said its global same-store sales in the latest quarter had grown just 3.4%, falling short of the 4.7% growth Wall Street had expected.The lackluster quarter — which the company also blamed on conflict in the Mi ...

McDonald's Corporation (MCD) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line increased on a year-over-year basis.Chris Kempczinski, president and CEO of McDonald's, attributed the performance to the effective implementation of the Accelerating the Arches strategy. The initiative paved a path for a cumulative comparable sales growth of over 30% from 2019 levels. The management stated optimism in the comp ...

Financial Data and Key Metrics Changes - In 2023, McDonald's achieved global comparable sales growth of 9% and a nearly 3% increase in guest count globally, maintaining leading market share across most major markets [5][15] - Adjusted earnings per share for Q4 2023 was $2.95, an 11% increase in constant currencies compared to the prior year [25] - The full year adjusted operating margin was just over 47%, reflecting higher restaurant margin dollars across all segments [25][38] Business Line Data and Key Metrics Changes - The chicken category now represents $25 billion in annual system-wide sales, on par with beef, driven by the success of the McCrispy sandwich [7][30] - The loyalty program expanded to 50 markets, achieving over $20 billion in annual loyalty system-wide sales in 2023 [6][31] - The IDL segment opened an average of four new restaurants daily, creating nearly 50,000 new jobs in 2023 [12] Market Data and Key Metrics Changes - The IDL segment experienced comp sales of less than 1% due to the impact of the war in the Middle East, while the U.S. and IOM segments saw over 4% comp sales performance [15][16] - In China, despite macroeconomic challenges, McDonald's opened over 1,000 restaurants in 2023 and plans to continue similar growth in 2024 [64][67] Company Strategy and Development Direction - The "Accelerating the Arches" strategy has fueled over 30% comparable sales growth since 2019, focusing on customer experience and operational improvements [6][14] - McDonald's aims to reach 50,000 restaurants by the end of 2027, identifying key areas with high population growth and lower store density [32][39] - The company is investing in technology and digital initiatives to enhance customer engagement and operational efficiency [33][40] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued macroeconomic pressures in 2024, with expected comp sales growth moderating to historical averages of 3% to 4% [36][37] - The company remains focused on providing affordable options to consumers, particularly lower-income customers, amidst ongoing inflationary pressures [17][28] - Management expressed confidence in the resilience of the McDonald's brand and its ability to adapt to changing consumer needs [27][41] Other Important Information - McDonald's has implemented a new business ventures team to explore opportunities in beverage-led occasions, with a pilot restaurant concept showing promising results [8] - The company is committed to supporting local communities and franchisees, particularly in regions affected by geopolitical issues [11][62] Q&A Session All Questions and Answers Question: Impact of boycotts on IOM results - Management noted that the most pronounced impact is in the Middle East and some Muslim countries, with varying effects depending on the location of restaurants [46][47] Question: Self-help measures in France - Management acknowledged challenges in France, particularly around value and operations, and is implementing a new value program to improve performance [50][51] Question: Components of 2024 comp sales guidance - Management indicated that pricing is expected to ease, with comp sales growth returning to historical norms of 3% to 4% [54][56] Question: Impact of the Middle East on sales - Management confirmed that the impact is significant but did not provide specific numbers, emphasizing the strength of their franchisees in the region [58][59] Question: Growth aspirations in China - Management expressed optimism about growth in China, having opened over 1,000 restaurants in 2023 and planning to continue expansion [64][67]

Shares of fast-food giant McDonald's (MCD -3.94%) fell on Monday after the company reported financial results for the fourth quarter of 2023. The results were solid, but management's guidance for 2024 wasn't up to the market's expectations. As of 10:30 a.m. ET, McDonald's stock was down about 3.5%.Growth is cooling for McDonald'sIn 2023, the company enjoyed global same-store-sales (comparable-sales) growth of 9%, which is quite good for a company this large and mature. These strong sales numbers also substa ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

McDonald’s (NYSE:MCD) failed to meet revenue estimates for the first time in four years, blaming its international business. For the fourth quarter, McDonald’s reported net income of $2 billion, $2.80 per share fully diluted, with revenue of $6.4 billion. Shares fell about 1.7% over the weekend and fell further once the market opened. MCD stock entered trade this morning at $287.74, a market capitalization of $210 billion and 25 times earnings.Not Loving ItThe miss on revenue was less than 1%, and the compa ...

Fast food giant McDonald's Corp (NYSE:MCD) announced a fourth-quarter earnings win earlier, but missed revenue expectations as conflict in the Middle East squeezed sales. The security is down 3.1% to trade at $287.73 at last check -- on track for for its worst single-day percentage loss since May -- and hit to its lowest level since December. MCD boasts a 8.9% year-over-year lead with long-term support at the 60-day moving average, though, and just scored a Jan. 22 all-time high of $302.39.Options volume is ...