Earnings Preview: McDonald's (MCD) Eyes Recovery in Q4 2024
Key Metrics:
* Revenue: Expected to slightly increase to $6.45 billion
* Earnings per share: Projected at $2.84
* Global same-store sales growth: Anticipated decline of 0.91%
* US same-store sales growth: Forecast to decrease by 0.35%
Challenges and Outlook:
McDonald's (MCD) has faced headwinds in 2024, including an underperforming stock, weak sales, and an E. coli outbreak. However, analysts are optimistic about the company's recovery in the fourth quarter.
For the full fiscal year 2024, revenue is expected to grow slightly, while earnings per share and global same-store sales growth are projected to decline slightly.
Value Menu Strategy:
In 2025, McDonald's plans to regain foot traffic with its McValue menu platform and new menu items.
Franchise Operators' Concerns:
Franchise operators are concerned about the overreliance on promotions, which may impact margins. They expect the buy one, get one offering and the $5 Meal Deal to account for a significant portion of sales in January.
Forward-Looking Commentary:
Analysts will be closely monitoring McDonald's forward-looking commentary to assess the company's recovery plan and plans for the second half of 2025.