McDonald’s beats analysts’ forecast for earnings in the fourth quarter

McDonald’s beats analysts’ forecast for earnings in the fourth quarter
  • McDonald’s beats analysts’ forecast for earnings in the fourth quarter.
  • McDonald’s global systemwide sales cross the $100 billion mark
  • McDonald's gained around 20% in the stock market in 2019.

McDonald’s reported quarterly earnings on Wednesday that highlighted a sharp increase in sales in the United States and saw the stock rising 1% in premarket trading. McDonald’s is currently exchanging hands around $211 per share in the stock market that marks an around 20% increase as compared to where it opened in January 2019.

McDonald’s Figures Versus Analysts’ Estimates

Based on Refinitiv’s data, analysts had anticipated $5.3 billion in revenue for the fast-food chain in the fourth quarter. In terms of earnings per share (EPS), experts had forecast $1.96 for McDonald’s while the global growth in same-store sales was expected at 5.2%. In its earnings report on Wednesday, while the American fast-food company matched the expectations for quarterly revenue, EPS was posted slightly higher at $1.97 per share while the global same-store sales were reported to have climbed 5.9% in the recent quarter.

The net income for McDonald’s rose from $1.41 billion in the same quarter last year to $1.57 billion in 2019’s fourth quarter. The same-store sales in McDonald’s home market, the United States of America, surged 5.1% in the fourth quarter. The company cited price hiked to have contributed to a sharp increase in U.S sales. The company also highlighted that the core menu items like the world-famous Big Mac by McDonald’s fuel the increase in sales. The recent renovations that turned its stores tech-intensive for smooth operations and better efficiency, were also reported to have boosted sales further.

McDonald’s Global Systemwide Sales Cross The $100 Billion Mark

In McDonald’s international unit that includes France and Germany as the top markets, same-store sales were seen 6.2% higher in the recent quarter. The smaller international units, on the other hand, that include Brazilian and Chinese markets, registered an even higher 6.6% increase in same-store sales in the fourth quarter.

The earnings report also highlighted on Wednesday that global systemwide sales for McDonald’s crossed the $100 billion mark in fiscal 2019.

McDonald’s is performing upbeat in the stock market in 2020 so far. Opening at around $200 per share, the stock has already gained around 5% in January and is exchanging hands at $211.50 at the time of writing. In August 2019, McDonald’s was seen trading as high as around $222 in the stock market that registered a record high for the fast-food company. The gain was widely sustainable as the share prices continue to linger near the record high.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.
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