McDonald's (MCD) Earnings Preview: Analysts Anticipate Challenging Fourth Quarter
McDonald's (MCD) investors have faced a turbulent 2024 marked by stock underperformance, sluggish sales, and an E. coli outbreak. As the fast food giant prepares to release its fourth quarter results, analysts anticipate a difficult period may be nearing its end.
Q4 Expectations
According to Bloomberg estimates, same-store sales are projected to decline 0.91% year-over-year, with international markets leading the decline at 1.22%. However, revenue is expected to rise slightly to $6.45 billion, while earnings per share are forecast at $2.84.
Full Year 2024 Outlook
For the full fiscal year 2024, Bloomberg consensus data suggests:
* Revenue: $25.99 billion, up from $25.49 billion
* Adjusted earnings per share: $11.74, down from $11.94
* Global same-store sales growth: -0.39%, down from 9.00%
* US same-store sales growth: +0.44%, down from 8.70%
McValue Platform and Customer Recovery
McDonald's aims to revitalize foot traffic in 2025 with its McValue menu and new menu items. Analysts will be monitoring the impact of the value platform and any effects on company-operated stores' margins.
Industry Insights
Analysts expect cautious commentary from McDonald's on future performance. Some speculate that the second half of 2025 may see improvement due to easier comparisons. However, concerns remain about overreliance on promotions, which may impact profitability.
Analyst Ratings
* TD Cowen: Hold
* Wedbush: Outperform
* BTIG: Neutral