An indication is posted in front of a McDonald’s restaurant on April 28, 2022 in San Leandro, California.
Justin Sullivan | Getty Images
McDonald’s on Tuesday reported that U.S. customers are visiting its restaurants more, helping the fast-food giant top Wall Street’s estimates for its fourth-quarter earnings and revenue.
It is the second consecutive quarter that the corporate noted increasing traffic domestically, bucking the industry trend. Many consumers have reduce restaurant spending in response to inflation. But McDonald’s has largely benefitted from the change in consumer behavior since many have traded down from full-service restaurants to its Big Macs and McNuggets.
The fast-food giant is expecting that short-term inflation will proceed in 2023, in response to an announcement from CEO Chris Kempczinski.
Here’s what the corporate reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.59 vs. $2.45 expected
- Revenue: $5.93 billion vs. $5.68 billion expected
The corporate reported fourth-quarter net income of $1.9 billion, or $2.59 per share, up from $1.64 billion, or $2.18 per share, a 12 months earlier.
Net sales fell 1% to $5.93 billion but rose 5% when stripping out foreign currency changes. Globally, same-store sales climbed 12.6% within the quarter, fueled by strong demand within the U.S. and its largest European markets.
In McDonald’s home market, higher menu prices and increased demand drove same-store sales growth of 10.3%, topping StreetAccount estimates of 8.1%. The corporate also noted the success of its McRib promotion, which labeled the limited-time item’s annual return as its “farewell tour.”
Outside of america, the corporate also saw stronger-than-expected growth. Its international operated markets segment reported a same-store sales increase of 12.6%, fueled by strong performance in the UK, Germany and France. Its international developmental licensed markets division saw same-store sales climb 16.5%, driven by Japan and Brazil. Sales in China, nevertheless, disenchanted as a result of Covid-related government restrictions.
