McDonald’s Q4 Earnings Preview
McDonald’s Fourth-Quarter Financial Report Insights
McDonald’s Q4 Earnings Preview on Monday, and analysts are keeping a close eye on the performance of the fast-food giant. Here’s a comprehensive overview of what Wall Street expects based on insights from LSEG (formerly Refinitiv) analysts:
Table of Contents
Anticipated Metrics:
- Earnings Per Share Projection: $2.82
- Expected Revenue: $6.45 Billion
Recap of McDonald’s 2023 Performance:
The year 2023 witnessed a robust start for McDonald’s, marked by impressive double-digit growth in same-store sales and increased foot traffic during the initial half. However, challenges emerged in the third quarter, with a notable decline in spending among low-income consumers impacting traffic to U.S. restaurants. The upcoming fourth quarter is poised to continue navigating these challenges.
Performance Projections:
Analysts foresee a modest growth of 4.7% in McDonald’s quarterly same-store sales, a significant drop from the 10.9% reported a year ago. Factors contributing to this projection include a slowdown in the chain’s price hikes and a general decline in industry foot traffic during the months of November and December.
External Factors Impacting McDonald’s:
CEO Chris Kempczinski has alerted investors to the impact of the Israel-Hamas conflict on the company’s sales, affecting both the Middle East and select markets outside it. Notably, calls for a boycott on social media emerged after McDonald’s Israeli franchisee provided discounts to soldiers.
Similar challenges have affected other industry players, such as Starbucks, which experienced a decline in U.S. traffic as occasional customers refrained from visiting cafes.
Looking Ahead to 2024:
Wall Street projects a positive outlook for McDonald’s in 2024, with expectations of earning $12.53 per share, reflecting a 6.1% increase from the previous year. Additionally, revenue is anticipated to grow by 6.3%, reaching $27.14 billion.
Market Performance:
Despite the challenges faced throughout the year, McDonald’s stock has demonstrated resilience, showing a 12% increase over the past year. This places the company’s market value at approximately $215 billion.
In conclusion, McDonald’s fourth-quarter report presents a nuanced landscape, with analysts closely monitoring the impact of external factors on the company’s performance while projecting optimistic figures for the upcoming year. Investors await the official release to gain a comprehensive understanding of McDonald’s financial standing.
