Earnings Alerts

McDonald’s Corp (MCD) Earnings: 2Q Comparable Sales Miss Estimates, EPS Falls Short

  • McDonald’s 2Q comparable sales decreased by 1%, lower than last year’s 11.7% increase and below the estimated 0.84% rise.
  • US comparable sales fell by 0.7%, missing the estimated 1.04% increase and last year’s 10.3% growth.
  • Sales in International Operated Markets dropped by 1.1%, not meeting the 1.85% estimate and previous year’s 11.9% growth.
  • International Developmental Licensed Markets saw a 1.3% decrease in sales, which was worse than the estimated 0.41% decline and last year’s 14% growth.
  • Adjusted earnings per share (EPS) were $2.97, below the expected $3.07.
  • Reported EPS was $2.80, down from last year’s $3.15.
  • Revenue stood at $6.49 billion, down 0.1% year-over-year and below the expected $6.65 billion.
  • Operating income decreased by 5.9%, amounting to $2.92 billion.
  • In the US, negative guest counts partly offset by higher average checks from strategic menu increases impacted comparable sales.
  • In International Developmental Licensed Markets, the war in the Middle East and negative sales in China overshadowed positive sales in Latin America and Japan.

Mcdonald’s Corp on Smartkarma

Independent analysts on Smartkarma, like Baptista Research, are closely covering McDonald’s Corp, providing valuable insights for investors. Baptista Research‘s report “McDonald’s Corporation: Emphasizing Value to Attractive Various Income Cohorts! – Major Drivers” highlights the positive growth trajectories despite broader consumer pressures globally. Despite increased inflation impacting consumer behavior, McDonald’s recorded its 13th consecutive quarter of positive comparable sales growth, showcasing a robust strategic plan based on consumer insights.

In another report by Baptista Research, “McDonald’s Corporation: What Are Their Actions in Response to Economic Pressures & Inflation? – Major Drivers,” the focus is on the company’s resilience in the face of macroeconomic challenges. Even amidst economic pressures in 2023, McDonald’s reported strong growth with global comp sales up by 9% and positive traffic across all segments. This analyst coverage underscores McDonald’s ability to navigate economic challenges and maintain a strong market position across key markets.


A look at Mcdonald’s Corp Smart Scores

FactorScoreMagnitude
Value0
Dividend3
Growth4
Resilience5
Momentum3
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Analysts at Smartkarma have provided an overall positive outlook for McDonald’s Corp based on their Smart Scores. The company scored high in Growth and Resilience, indicating a promising long-term future in terms of expanding its business and withstanding economic downturns. With a solid score in Dividends, McDonald’s also shows potential for providing stable returns to investors over time. Although the Value score was lower, the strong performance in other areas suggests continued growth and profitability for the global fast-food giant.

McDonald’s Corporation, a major player in the fast-food industry, has received favorable ratings in key areas according to Smartkarma’s Smart Scores. With a focus on growth and resilience, the company is positioned well to capitalize on expanding its operations globally and maintaining its competitive edge. A moderate Momentum score indicates a steady pace of development, while the Dividend score highlights a commitment to rewarding shareholders. Overall, McDonald’s Corp’s robust performance across various metrics signals a bright future ahead in the global restaurant market.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

πŸ’‘ Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars