McDonald’s (MCD) reports Q4 earnings of $1.44
McDonald’s (MCD) has reported Q4 earnings of $1.44, $0.03 better than analyst estimates of $1.41. Revenue was also above analysts’ expectations of $5.99 billion coming in at $6.03 billion.
McDonald’s President and CEO Steve Easterbrook. Said the following: “Throughout 2016, we worked diligently to lay the groundwork for our long-term future. We focused on driving changes in our menu, restaurants and technology to deliver an enhanced McDonald’s experience for our customers around the world,” He also stated “We applied the necessary rigour and discipline to strengthen the Company and our financial performance. Our efforts yielded a more streamlined and focused organisation that generated solid fourth quarter and full year results, including our strongest annual global comparable sales growth since 2011 along with record franchisee cash flows in many of our major markets. I am confident that we’re on the right path as we pursue our goal of being recognised by our customers as the modern, progressive burger company.”
Comparable sales fall 1.3% in the U.S. whilst sales for the International Lead division increased 2.8%. Q4 comparable sales increased 4.7% in the High Growth division influenced by strong performance in China and positivity across the entire division. Q4 comparable sales rose 11.1% in the Foundational markets led by great performance in Japan and markets in Latin America, as well as solid results across the division’s remaining geographic regions.
- Consolidated revenues decreased 5% (3% in constant currencies), due to the impact of refranchising
- Consolidated operating income increased 5% (7% in constant currencies)
- Global comparable sales increased 2.7%, including positive comparable sales in the International Lead, High Growth and Foundational division’s
- Diluted earnings per share of $1.44 increased 10% (12% in constant currencies)
Steve Easterbrook stated, “For McDonald’s, 2016 was a year of purposeful change as we focused on the key elements of our turnaround plan – strengthening our business to drive long-term sustainable growth by sharpening our focus on our customers, right-sizing our structure and putting the right talent in place to lead the Company into the future. I’m confident that we are well-positioned to transition to a longer-term focus in 2017. Our refranchising efforts and financial discipline will enable us to direct our capital and G&A resources towards new strategic opportunities to deliver on our long-term strategy. We look forward to providing further details on our strategy and financial targets later this quarter. As we begin the first quarter of 2017, we are mindful of the comparison we face against first quarter 2016 results, which benefited from leap year, favourable weather and continued momentum from All-Day Breakfast in the U.S.”