fbpx

Stay Informed. Stay Competitive. Get Free Email Updates Dow 30 & Emerging Growth

Stay Informed. Stay Competitive.

Get Free Updates

Dow 30 & Emerging Growth

McDonald’s Earnings Disappoint, As Extended Lockdown Flattened Sales

By John F. Heerdink, Jr.

McDonald’s Corporation (MCD) reported quarterly profit and revenue this week, much below market estimates as the second round of pandemic lockdowns were announced in parts of Europe, hurting the business and affecting the company’s sales growth in the U.S. market too. The burger giant informed that the restrictions were affecting markets abroad, particularly those with fewer drive-thru locations.

Comparable sales for the restaurant chain’s international operated markets segment dropped 7.4% in the fourth quarter, driven by weakness in countries like France, Germany, Italy, and Spain, where the health crisis has been more severe. Comparable sales in the United States increased 5.5%, an improvement over the prior quarter and above the estimate of a 5.15% increase, as the company relied on its drive-thru and celebrity collaboration, including the crowd-favorite Travis Scott Meal, to push business.

Overall, global comparable sales dropped 1.3% for the quarter ending Dec. 31, better than the expected 1.46% decline and an improvement over the previous quarter with global sales dropping 2.2% year over year. Total revenue declined 2.1% to $5.31 billion, missing the estimate of $5.37 billion. Excluding one-time items, the company earned $1.70 per share, missing the average analyst estimate by 8 cents. 

McDonald’s Corporation (MCD) is the leading global foodservice retailer with nearly 37,000 locations in over 100 countries. The Corporation operates and franchises McDonald’s restaurants in the US and across the globe with over 90% of its restaurants owned and operated by local, independent businessmen and women. To learn more about McDonald’s Corporation (MCD) and to track its progress please visit the Vista Partners McDonald’s Coverage Page

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. 

Stay Informed! Stay Competitive! Please join us at Vista Partners and receive our FREE email updates throughout the week and view our exclusive content and research.
Post View Count : 120
(Read Original Story: McDonald's earnings miss estimates as Europe lockdowns squash sales in Reuters)


YOUR GUIDE TO STAYING INFORMED IN THE MARKETS

Subscribe for FREE Email Updates & Access To EXCLUSIVE Research!

Connect with us