McDonald’s Company MCD reported mixed quarterly results Monday, with fourth-quarter 2023 adjusted EPS of $2.95, beating consensus of $2.82.
Sales of $6.41 billion, up 8% y/y (6% at constant currencies), were slightly below consensus of $6.45 billion.
The fast food giant said its U.S. same-store sales rose 4.3% in the fourth quarter and 3.4% globally.
Menu price increases, marketing campaigns and continued growth in digital and delivery contributed to strong comparable sales results.
The International Development Licensed Markets segment saw same-store sales increase just 0.7%. McDonald’s said the division’s sales fell due to the war in the Middle East.
The company’s internationally operated markets segment experienced same-store sales growth of 4.4%, led by the United Kingdom, Germany and Canada, partially offset by negative comparable sales in France.
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McDonald’s said it has seen benefits from its loyalty program, MyMcDonald’s Rewards, which grew more than 45% last year.
System sales to loyalty members last year were more than $20 billion for fiscal 2023 and $6 billion in the fourth quarter in the 50 largest markets.
CEO Chris Kempczinski acknowledged the current consumer environment in the earnings release: “We remain confident in the resilience of our business in the face of macro challenges that will persist into 2024.”
Consolidated operating profit increased 8% (6% at constant currencies) to $2.8 billion. Results included $72 million in pre-tax charges related to the write-off of degraded software no longer in use and $66 million in pre-tax charges related to the Company’s Accelerating the Arches growth strategy, including restructuring costs associated with the acceleration of the organization.
Excluding these charges, consolidated operating profit increased 14% (11% at constant currencies). Adjusted net income increased 13% (+10% y/y) to $2.14 billion.
Price Action: In pre-market session at last check on Monday, MCD shares fell 0.84% to $294.55.
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