McDonald’s Corporation, started in 1940, is one of the biggest and most famous fast-food chains in the world. With its well-known golden arches, McDonald’s is in over 100 countries and serves millions of customers every day. The company changed the fast-food industry by introducing new ideas like the drive-thru and fast-food assembly line, making service faster and more consistent. Based in Chicago, Illinois, McDonald’s keeps growing around the world while adjusting to local tastes.
Over time, McDonald’s menu has changed to offer a variety of items for different tastes. The company also uses new technology, like mobile ordering and loyalty programs, to make things easier for customers. McDonald’s is committed to being sustainable and helping the community, staying a leader in the fast-food industry and providing a great dining experience for its customers.
McDonalds Fiscal Q4 2024
McDonald (MCD) reported results for the fourth quarter and full year of 2024. The company achieved over $130 billion in sales for the year, marking a growth of over $1 billion compared to the previous year.
Sales to loyalty members reached about $30 billion for the year and $8 billion for the quarter, showing a 30% growth over the prior year.
By the end of the year, McDonald’s had over 175 million active loyalty users, with a growth of 15% compared to the previous year.
Their revenue for the fourth quarter fell by 0.28% from the previous year and was lower than the expected. Also, their adjusted earnings per share was $2.80, which also missed the estimate of $2.84.
Fourth Quarter Results
- Sales around the world increased by 0.4%.
- In the U.S., sales went down by 1.4%.
- Total revenue stayed the same.
- Overall sales increased by 2%.
- Operating income increased by 2%, and earnings per share stayed the same at $2.80.
Full Year Results
- Global sales decreased by 0.1%.
- In the U.S., sales increased by 0.2%.
- In international operated markets, sales decreased by 0.2%.
- In international licensed markets, sales decreased by 0.3%.
- Total revenue increased by 2%.
- Overall sales increased by 1%.
- Operating income increased by 1%, and earnings per share decreased by 1% to $11.39.
Boards Statements
CEO Chris Kempczinski highlighted the company’s focus on providing value and exciting menu options, as they strive to restore consumer confidence after an E. coli outbreak that affected guest counts and sales last year. Kempczinski has apologized for the outbreak and expressed confidence in the safety of McDonald’s food, with efforts underway to rebuild momentum in the U.S. market.
Impact on the Stock Market
McDonald’s stock (MCD) saw a significant reaction in pre-market trading after the earnings report, surging by about 2%. This positive movement could be attributed to investor optimism about the company’s strong performance in international markets, despite mixed results overall.
Investors have mixed feelings about the stock, with some remaining optimistic about McDonald’s long-term prospects, while others are more cautious due to recent challenges such as the E. coli outbreak and weaker demand in the U.S.
