- McDonald's Corp.
- 29 October 2024 12:38:55
Source: Sharecast
The fast-food giant posted adjusted earnings per share of $3.23, surpassing the $3.20 analysts projected, while revenue reached $6.9bn, edging past the anticipated $6.82bn.
Revenue growth of 3% year-on-year was attributed to a 4% increase in sales from company-owned outlets and a 1% rise in franchised revenue.
US comparable sales rose by 0.3%, marking a recovery from the prior quarter’s decline as McDonald's leveraged targeted marketing campaigns and digital growth to attract diners.
However, the company reported a 1.5% decline in global same-store sales, primarily impacted by underperformance in international markets.
The ‘international operated markets’ segment, which includes regions such as France and the UK, saw a 2.1% decline in comparable sales, while the ‘international developmental licensed markets’ segment, with significant exposure in the Middle East and China, dropped 3.5%.
Systemwide sales for McDonald's loyalty members hit over $28bn in the trailing 12 months and nearly $8bn for the quarter, reflecting steady engagement with frequent diners.
“We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending,” said chairman and chief executive officer Chris Kempczinski.
“McDonald’s will continue to follow our ‘Accelerating the Arches’ playbook to drive long-term growth globally and win in this environment.”
While the recent E. coli outbreak linked to McDonald’s Quarter Pounder burgers in the US was not addressed in the earnings release, health authorities had identified onions as the probable source.
The company has since removed affected items from impacted locations, potentially dampening fourth-quarter foot traffic.
At 0836 EDT (1236 GMT), shares in McDonald’s Corporation were down 2.22% in premarket trading in New York, at $290.21.
Reporting by Josh White for Sharecast.com.
