Visitors are attending a New Year event held by McDonald’s in Shanghai, China, on January 25, 2024.
Costfoto | Nurphoto | Getty Images
McDonald’s reported mixed quarterly results on Monday as turmoil in the Middle East took a toll on its sales in those markets.
Shares of the company fell more than 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: $2.95 adjusted vs. $2.82 expected
- Revenue: $6.41 billion vs. $6.45 billion expected
The fast-food giant reported fourth-quarter net income of $2.04 billion, or $2.80 per share, up from $1.9 billion, or $2.59 per share, a year earlier.
Excluding the write-off of software that’s no longer in use, restructuring costs and other items, McDonald’s earned $2.95 per share.
Net sales rose 8% to $6.41 billion.
The chain’s global same-store sales grew 3.4% in the quarter, falling short of StreetAccount estimates of 4.7%, as its Middle Eastern sales struggled.
The international developmental licensed markets segment saw its same-store sales increase just 0.7%. McDonald’s said the division’s sales lagged as a result of the war in the Middle East. All other markets in the segment, like China and Japan, reported positive same-store sales growth for the quarter.
Domestic same-store sales rose 4.3%, about in line with expectations, helped by menu price hikes. The company also credited effective marketing and digital sales growth.
The company’s international operated markets segment, which includes Canada, Australia and Germany, reported same-store sales growth of 4.4%, shy of StreetAccount estimates of 5.1%. Same-store sales shrank in France, however.
