McDonald’s (MCD) results missed the mark to end 2024 as the fast food chain faced an underperforming stock, lackluster sales, and an E. coli outbreak.
Revenue at the fast food giant for the fourth quarter decreased 0.28% from a year ago to $6.39 billion, missing expectations for $6.45 billion. Adjusted earnings per share of $2.80 were also lower than Wall Street’s estimate of $2.84.
Global same-store sales for the quarter ended Dec. 31 were up 0.4%, compared with an expected decline of 0.91%. But US same-store sales were down 1.4% year over year, as an E. coli outbreak offset momentum in late October. The burger chain alluded to a decline in check growth, offset by slightly higher guests count.
CEO Chris Kempczinski told investors that the company is moving with “urgency” as it looks to increase guest count, win market share, and reclaim “leadership in value and affordability.”
Global same-store sales for the quarter, which ended Dec. 31, grew 0.4% compared to an expected decline of 0.91%.
International-owned stores saw positive same-store sales growth in the Middle East, which CFO Ian Borden attributed to the lapse of the impact of the Israeli conflict, plus growth in Japan and “encouraging signs of stabilization” in China.
Many on the Street hope the fourth quarter results are the “low point in recent history for the brand,” as Citi analyst Jon Tower wrote in a note to clients. In 2025, the chain aims to regain foot traffic with its McValue menu platform and new offerings from chicken strips to the return of snack wraps.
Here’s what McDonald’s reported for fourth quarter results, compared to Wall Street estimates, per Bloomberg consensus data:
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Revenue: $6.39 billion versus $6.45 billion
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Adjusted earnings per share: $2.80 versus $2.84
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Global same-store sales growth: +0.4% versus -0.91%
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US same-store sales growth: -1.4% versus -0.35%
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International-owned same-store sales growth: -0.1% versus -1.22%
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International franchised same-store sales growth: +4.1% versus -0.38%
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Here’s what McDonald’s reported for the full fiscal 2024 year, compared to Wall Street estimates, per Bloomberg consensus data:
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Revenue: $25.92 billion versus $25.99 billion
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Adjusted earnings per share: $11.39 versus $11.74
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Global same-store sales growth: -0.1% versus -0.39%
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US same-store sales growth: +0.2% versus +0.44%
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International-owned same-store sales growth: -0.2% versus -0.50%
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International franchised same-store sales growth: -0.3% versus -1.39%
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Kempczinski said January was sluggish across the US restaurant industry.
