Visitors attend a McDonald’s New Year event in Shanghai, China, January 25, 2024.
Cost photo | Photo only | Getty Images
MC Donalds is expected to report its fourth-quarter results before the bell on Monday.
Here’s what Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, expect:
- Earnings per share: $2.82 expected
- Revenue: $6.45 billion expected
The fast food giant started 2023 well as it reported double-digit same-store sales growth and an increase in foot traffic in the first half of the year. But in the third quarter, McDonald’s said low-income consumers pulled back on spending more, hurting traffic to its U.S. restaurants. In the fourth quarter, Wall Street expects the bumpy road to continue.
Analysts forecast McDonald’s quarterly same-store sales rose just 4.7%, a far cry from the 10.9% reported a year ago. The chain’s price increases have slowed and foot traffic across the industry declined in November and December.
CEO Chris Kempczinski has also warned investors that the war between Israel and Hamas is hurting the company’s sales, both in the Middle East and in some markets outside the Middle East. Social media users have called for a boycott of McDonald’s after the Israeli franchisee offered discounts to soldiers.
Starbucks has also been the target of Middle East-related boycotts. The coffee giant said its traffic in the U.S. fell as casual customers stopped visiting its cafes.
For 2024, Wall Street expects McDonald’s to earn $12.53 per share, up 6.1% from last year, on revenue of $27.14 billion, an increase of $6. corresponds to 3%.
McDonald’s shares are up 12% in the last year, giving it a market value of about $215 billion.
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2024-02-05 05:01:01
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