McDonald’s Corporation is one of the most famous fast food companies in the world and it retains this status for decades. Interestingly, people from all over the world, have at least some information about the company. Let’s have a look at the results, and discuss its plans for the future.
It is worth noting that, McDonald’s reported quarterly earnings that exceeded expectations. Importantly, promotions played a significant role. Notably, earnings per share surpassed expectations in the third quarter, $2.22 adjusted vs $1.90 expected. People should keep in mind that, revenue reached $5.42 billion.
Interestingly, the fast-food giant reported fiscal third-quarter net income of $1.76 billion or $2.35 per share, up from $1.61 billion or $2.11 per share a year earlier.
Excluding gains from the sale of its shares of McDonald’s Japan as well as other items, the company earned $2.22 per share. It is worth mentioning that, analysts expected $1.90 per share.
Moreover, net sales declined 2% to $5.42 billion and this result surpassed expectations.
McDonald’s and interesting details
It is worth mentioning that, the company’s global same-stores fell 2.22% in the quarter, dragged down by slower recovery of its international markets. Nevertheless, the U.S. reported same-store sales growth of 4.6%, fueled by a strong September. That included its popular promotion with rapper Travis Scott. Also, the launch of its limited-time spicy McNuggets helped to boost sales.
Interestingly, McDonald’s recovery in the U.S. is outpacing that of rival Burger King. As a reminder, Burger King reported same-store declines of 3.2% in its latest quarter. However, another rival Wendy’s reported U.S. same-store sales growth of 7% in the third quarter.
Based on the information provided by the company, McDonald’s expects to cope with restrictions in various markets. The coronavirus pandemic continues to affect the situation. Importantly, new restrictions like mandatory dining room closures created problems in key international markets such as France, Germany, the United Kingdom, etc.
Hopefully, the company will increase its quarterly cash dividend by 3% to $1.29 per share.
McDonald’s expects to spend hundreds of millions of dollars to upgrade about 900 restaurants. Moreover, the company is forecasting about 950 million new restaurant openings. Interestingly, 270 of those new restaurants will be in the U.S. and International Operated Markets, which includes France and the United Kingdom. Also, China is expected to add about 400 new locations this year. In total, McDonald’s expects about 300 net new restaurants in 2020.
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