McDonald’s Earnings: Here’s Why Investors Don’t Like These Results

McDonald’s Corp. (NYSE:MCD) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.08%.

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McDonald’s Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 2.44% to $1.26 in the quarter versus EPS of $1.23 in the year-earlier quarter.

Revenue: Rose 0.9% to $6.61 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: McDonald’s Corp. reported adjusted EPS income of $1.26 per share. By that measure, the company missed the mean analyst estimate of $1.27. It beat the average revenue estimate of $6.59 billion.

Quoting Management: “McDonald’s remains diligently focused on enhancing our menu, restaurants and the overall customer experience to become more relevant to today’s consumers,” said McDonald’s President and Chief Executive Officer Don Thompson. “While the Company’s results for the quarter reflected difficult prior year comparisons and the ongoing impact of global economic headwinds, we continue our efforts to build market share and deliver sustained profitable growth for all stakeholders.”

Key Stats (on next page)…

Revenue decreased 4.99% from $6.95 billion in the previous quarter. EPS decreased 8.7% from $1.38 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.45 to a profit $1.44. For the current year, the average estimate is a profit of $5.78, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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