Benzinga - by Vandana Singh, Benzinga Editor.
McDonald’s Corporation (NYSE:MCD) reported mixed quarterly results on Monday, with fourth quarter 2023 adjusted EPS of $2.95, beating the consensus of $2.82.
Sales of $6.41 billion, up 8% Y/Y (6% in constant currencies), fell slightly short of the consensus of $6.45 billion.
The fast-food giant said its U.S. same-store sales rose 4.3% in the fourth quarter and 3.4% worldwide.
Menu price hikes, marketing campaigns, and continued digital and delivery growth contributed to strong comparable sales results.
The international developmental licensed markets segment saw its same-store sales increase just 0.7%. McDonald’s said the division’s sales lagged due to the war in the Middle East.
The company’s international operated markets segment reported same-store sales growth of 4.4%, led by the U.K., Germany and Canada, partly offset by negative comparable sales in France.
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McDonald’s said it saw a benefit from its loyalty program, MyMcDonald’s Rewards, which grew by more than 45% last year.
System sales last year to loyalty members were more than $20 billion for fiscal year 2023 and $6 billion in the fourth quarter across its 50 largest markets.
CEO Chris Kempczinski acknowledged the current consumer environment in the earnings release: “We remain confident in the resilience of our business amid macro challenges that will persist in 2024.”
Consolidated operating income increased 8% (6% in constant currencies) to $2.8 billion. Results included $72 million of pre-tax charges related to the write-off of impaired software no longer in use and $66 million of pre-tax charges related to the Company’s Accelerating the Arches growth strategy, including restructuring costs associated with Accelerating the Organization.
Excluding these charges, consolidated operating income increased 14% (11% in constant currencies). Adjusted net income increased 13% (up 10% Y/Y) to $2.14 billion.
Price Action: MCD shares are down 0.84% at $294.55 during the premarket session on the last check Monday.
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