McDonald's 2024 Q4 Results Fall Short of Expectations, Miss Sales Targets
Key Financial Metrics:
* Revenue: $6.39 billion (-0.28% YoY)
* Adjusted EPS: $2.80 (below estimate of $2.84)
* Global same-store sales growth: +0.4% (above decline of -0.91%)
* US same-store sales growth: -1.4% (offset by E. coli outbreak)
Challenges Impacting Performance:
* Underperforming stock
* Lackluster sales
* E. coli outbreak in late October
Earnings Outlook for 2025:
* Focus on regaining foot traffic through McValue menu platform
* Introduction of chicken tenders, strips, and snack wraps
Financial Performance for Fiscal 2024:
* Revenue: $25.92 billion
* Adjusted EPS: $11.39
* Global same-store sales growth: -0.1%
Analyst Commentary:
* Street analysts believe Q4 results represent a "low point in recent history" for McDonald's.
* Analysts highlight concerns about overdependence on promotions, with heavy discounts accounting for a significant portion of sales.
* Some optimism remains for a positive recovery in the second half of 2025 due to easier comparisons.
Additional Insights:
* McDonald's is facing challenges in driving incremental foot traffic despite the McValue platform.
* Adverse weather conditions in January impacted sales performance.
* Franchise operators expressed concerns about margin challenges due to the value offerings.
* Net income fell 1% for the quarter and 3% for the year.