McDonald’s Earnings Cheat Sheet: Positive Earnings Streak
S&P 500 (NYSE:SPY) component McDonald’s Corporation (NYSE:MCD) reported net income above Wall Street’s expectations for the second quarter. McDonald’s Corp. franchises and operates fast food restaurants worldwide.
McDonald’s Earnings Cheat Sheet for the Second Quarter
Results: Net income for the restaurant rose to $1.41 billion ($1.35 per share) vs. $1.23 billion ($1.13 per share) in the same quarter a year earlier. This marks a rise of 15% from the year earlier quarter.
Revenue: Rose 16.2% to $6.91 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: MCD beat the mean analyst estimate of $1.28 per share. It beat the average revenue estimate of $6.63 billion.
Quoting Management: “McDonald’s ongoing momentum reflects our commitment to the customer. By providing relevant food and beverage choices in convenient, modern restaurants, we’re giving customers more reasons to visit us more often,” said McDonald’s Chief Executive Officer Jim Skinner. “McDonald’s global results for the quarter demonstrate the resilience of our Plan to Win and our ability to execute successfully. Comparable sales and guest count increases across all segments, highlighted by June’s strong results, drove double-digit operating income and earnings per share growth.”
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 10.9% and in the fourth quarter of the last fiscal year, the figure rose 2.1%.
Revenue has risen the past four quarters. Revenue increased 8.9% to $6.11 billion in the first quarter. The figure rose 4% in the fourth quarter of the last fiscal year from the year earlier and climbed 4.3% in the third quarter of the last fiscal year from the year-ago quarter.
The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of $1.15 versus a mean estimate of net income of $1.14 per share.
Competitors to Watch: Chipotle Mexican Grill, Inc. (NYSE:CMG), Good Times Restaurants Inc. (NASDAQ:GTIMD), Carrols Restaurant Group, Inc. (NASDAQ:TAST), Tim Hortons Inc. (NYSE:THI), Yum! Brands, Inc. (NYSE:YUM), Jack in the Box Inc. (NASDAQ:JACK), Panera Bread Company (NASDAQ:PNRA), Nathan’s Famous, Inc. (NASDAQ:NATH), Wendy’s Arby’s Group Inc. (NYSE:WEN), Starbucks Corporation (NASDAQ:SBUX), Sonic Corporation (NASDAQ:SONC) and Darden Restaurants (NYSE:DRI).
(Source: Xignite Financials)