McDonald's (MCD) Q4 2024 profits
Mc Donalds On Monday, disappointing quarterly sales reported, which were reduced in the US restaurants in the US restaurants after an outbreak by E. Coli in just a few weeks after the quarter.
However, the company's shares rose by almost 5%because the managers would improve sales in 2025.
Here is what the company reported compared to the expectations of Wall Street, based on a survey of LSEG analysts:
- Win each share: Adapted $ 2.83, meet expectations
- Revenue: 6.39 billion US dollars expected compared to $ 6.44 billion
The net turnover of $ 6.39 billion was approximately flat compared to the same period last year. The total sales growth of the company in the same business of 0.4% exceeded Wall Street expectations of sales in the same business by 1% according to Street Account.
McDonald's US company's US business, however, reported on a steep decline in sales in the same business. Sales in the same business in the company's domestic restaurants fell by 1.4%in the quarter. Wall Street predicted the decline in sales of the same business of 0.6%.
McDonald's said the traffic was a little positive, but customers spent less than usual in the quarter. In summer, the chain introduced a combo meal of $ 5 to bring price-conscious guests back and turn over sluggish sales. The strategy worked and helped McDonald's US sales in the third quarter.
However, analysts have warned that value meals only work if customers also add menu items that are not discarded on their orders. McDonald's executives played these concerns on Monday and claims that the average check for the food of 5 US dollars is more than 10 US dollars.
The greatest success in the US sales of McDonalds took place at the end of October when the centers for the control and prevention of diseases associated a fatal outbreak by E. Coli with its quarterfeits. McDonald's changed the suppliers for his slippers onions, the ingredient caught the probable culprit for the outbreak. At the beginning of December, the CDC officially explained the outbreak.
In the days after the news of the outbreak, however, traffic in the US restaurants in McDonalds fell steeply, especially in the states concerned.
US sales met their Nadir in early November, but then rose again. In particular, the demand for the quarter of Pounder, a popular core menu with high edges, fell quickly after the crisis.
McDonald's expects his US sales to recover by the beginning of the second quarter, said executives.
“I think at the moment we see that the E. coli effects are now only located in the areas that had the greatest influence,” said CEO Chris Kempczinski about the company's conference call. “So think of the Rocky Mountain region, which was really the epicenter of the problem.”
The company hopes that value creation offers together with important menu deductions will help to fuel the restoration this year. In 2025, the burger chain plans to bring back its popular snacks, which have disappeared from the menus during the pandemic barriers and to introduce a new menu item of the chicken strips.
Sales were stronger outside the United States. Both McDonald's International Divisions reported sales increases in the same business and strengthened the overall performance of the company.
The international market for the company's international development license, which also includes the Middle East and Japan, reported sales growth in the same business of 4.1%.
McDonald's International Operated Markets Division, which comprises some of its largest markets, reported sales growth in the same business of 0.1%. The company said most of the markets reported sales increases in the same business, but the United Kingdom and some other markets recorded the same business in the quarter. France was a ray of hope, in which sales in the same business became positive after months of weak demand in the quarter.
McDonald's reported the fourth quarter of $ 2.02 billion or $ 2.80 per share, which is due to a previous year after $ 2.04 billion or $ 2.80 per share.
McDonald's earned the transaction costs for the purchase of its Israeli franchise company and other articles with the exception of profits associated with the sale of its South Korean business, $ 2.83 per share.
In the first quarter, the first quarter of McDonald's same sales by McDonalds is expected in the same business, CFO Ian Borden said, among other things, a weak start to the year in the United States. Winter storms and forest fires in California burdened in the entire industry in January as part of the restaurant.
For the whole year, McDonald's plans to open around 2,200 restaurants. About a quarter of these locations will take place in the USA and its international markets. The rest will be in the company's international development license markets, including around 1,000 new restaurants in China.
Including the investments in restaurant openings, McDonald's plans to spend between 3 and 3.2 billion US dollars for investment expenses this year.
The company also predicts a headwind of 20 cents to 30 cents per share in its total year profit due to exchange rates from the year.
