McDonald's Q4 Earnings: Missed Expectations, Outperformed on Global Sales
Key Metrics
* Revenue: $6.39 billion (missed estimate of $6.45 billion)
* Adjusted EPS: $2.80 (missed estimate of $2.84)
* Global Comparable Sales Growth: +0.4% (outperformed estimate of -0.91%)
Same-Store Sales
* US: -1.4% (down from -0.35% estimate)
* International-Owned: -0.1% (outperformed estimate of -1.22%)
* International-Franchised: +4.1% (outperformed estimate of -0.38%)
Full-Year Fiscal 2024
* Revenue: $25.92 billion (missed estimate of $25.99 billion)
* Adjusted EPS: $11.39 (missed estimate of $11.74)
* Global Comparable Sales Growth: -0.1% (outperformed estimate of -0.39%)
* US Same-Store Sales Growth: +0.2% (underperformed estimate of +0.44%)
Challenges
* Underperforming stock
* Lackluster sales
* E. coli outbreak in late October
Outlook
* Aim to regain foot traffic with McValue menu
* New offerings include chicken tenders, strips, and snack wraps
Analyst Commentary
* Citi analyst Jon Tower suggests Q4 results may represent the low point for McDonald's.
* TD Cowen's Andrew Charles notes that company-operated stores' margins and value offerings will be key.
Concerns
* Franchise operators express concerns over overdependence on promotions.
* High reliance on discounts and promotions could impact profitability.
Disclaimer: This content is solely for informational purposes and should not be construed as financial advice. It is essential to conduct thorough research and consult with qualified professionals before making any investment decisions.