McDonald's (MCD) Misses Quarterly Targets Despite Higher Global Sales
Financial Highlights
* Revenue declined 0.28% year-over-year to $6.39 billion, missing expectations of $6.45 billion.
* Adjusted earnings per share of $2.80 fell short of Wall Street's estimate of $2.84.
Same-Store Sales
* Global same-store sales increased by 0.4% for the quarter ended December 31, exceeding the anticipated decline of 0.91%.
* US same-store sales decreased by 1.4% year-over-year due to an E. coli outbreak in late October.
International Performance
* International-owned stores experienced positive same-store sales growth in the Middle East, Japan, and China.
* International franchised same-store sales grew by 4.1%.
Earnings Breakdown
| Metric | Q4 2024 | Analyst Estimate |
|---|---|---|
| Revenue | $6.39 billion | $6.45 billion |
| Adjusted EPS | $2.80 | $2.84 |
| Global SSS Growth | +0.4% | -0.91% |
| US SSS Growth | -1.4% | -0.35% |
Full Fiscal 2024 Performance
| Metric | FY 2024 | Analyst Estimate |
|---|---|---|
| Revenue | $25.92 billion | $25.99 billion |
| Adjusted EPS | $11.39 | $11.74 |
| Global SSS Growth | -0.1% | -0.39% |
| US SSS Growth | +0.2% | +0.44% |
McValue Platform and Menu Innovation
* McDonald's plans to launch its McValue menu platform in US restaurants in 2025.
* The company aims to regain foot traffic and win market share with new menu items such as chicken strips and snack wraps.
Analyst Commentary
* Analysts anticipate improved performance in the second half of 2025 due to easier comparisons.
* Some franchisees express concerns about over-reliance on promotions.