Reportedly, McDonald’s Corporation (MCD) missed Wall Street estimates as a result of higher costs and slowed sales in its over 4,500 restaurants in Australia and China even thought they realized gains from growth in the United States in the fourth quarter.
Operating costs increased 14% to $3.61 billion as supply chain bottlenecks led the world’s largest burger chain to spend more on ingredients and packaging material. U.S. food and paper costs increased 4% in 2021 which the company expects to roughly double in 2022. U.S. same-store sales increased 7.5% in comparison to analysts’ estimate of a 6.8% rise, driven by the launch of special menu items such as McRib, loyalty program-driven growth in digital sales, and a 6% increase in menu price in 2021. Sales in China reduced after some cities banned dining in restaurants to control fresh pandemic outbreaks ahead of the February Winter Olympics. In Australia, sales growth remained muted compared to a year earlier.
Sales growth in Italy, Germany, France, and the United Kingdom also helped boost global revenue by 13% to $6.01 billion in the three months ending Dec. 31, slightly below estimates of $6.03 billion. Global same-store sales jumped 12.3%, higher than Wall Street estimates of a 10.73% rise.
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.
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